Lamps light a path to $7.35 billion in sales
By Dana French -- Home Accents Today, 3/1/2005
About 8 million households purchase a lamp each year, according to Home Accents Today's exclusive Consumer Buying Trends Survey. Floor lamps and table lamps are the top two buys, followed closely by desk/reading lamps. Discounters, including the two biggest, Wal-Mart and Target, grab the greatest share of lower-priced lamp buys. The channel accounted for half of all floor lamp purchases and two-fifths of all desk lamp purchases in the $10 to $29 range.
The Home Accents Today Universe Study (see December 2004 issue) reported portable lamps reached $7.15 billion in retail sales in 2004. The category is projected to grow another 3.1% to $7.35 billion this year. In terms of the total number of lamp purchases, the discount department store channel is tops. When grouped together with off-price retailers, the channel is also tops in terms of retail dollars, accounting for nearly one-fifth of the lamp market in 2004, garnering an estimated $1.36 billion in sales according to the Universe Study. Home improvement centers and warehouse membership clubs together sold an estimated $1.26 billion of portable lamps last year, making it the second largest channel for the category.
Households responding to Home Accents Today's consumer survey indicate desk/reading lamps are a popular choice through the home improvement store channel. Households buying a desk lamp at Home Depot, Lowe's and the like spent a median of $50 on their total purchase and 68% bought only one. More than half spent between $20 and $49 on their total desk lamp purchase while only 15% spent $75 or more. Two-fifths of households buying a desk lamp through the channel have incomes of $75,000 or more and 18% have incomes of $100,000 or more. Nearly three-fifths are Baby Boomers (born 1946 to 1964), 86% own or are buying their home and 82% have Internet access.
Small accent lamps are consumers' most popular lamp choice in the home accent/gift store channel. Households spent a median of $58 on their small accent lamp purchase. Four-fifths of households buying one are 45 years old or more and about two-thirds make $75,000 or more. In all, home accent/gift stores had $925 million in lamp sales last year, according to the Universe Study.
The consumer survey shows traditional furniture stores are often a shopping destination for table lamps. The channel accounts for 11% of all table lamp purchases and one-fourth of all table lamp purchases priced $75 or more. Table lamps are sold as pairs through furniture stores as 67% bought two. Two-fifths of table lamp buyers are Baby Boomers and four-fifths are married and live in a house. According to the Universe Study, traditional furniture stores pulled in an estimated $410 million in total lamp sales in 2004. Total lamp sales through the channel are projected to grow 5.4% to $432 million this year.
The majority of households plan ahead before buying a lamp. In fact, only 18% to 26% of lamps are bought on impulse, depending on type. Desk/reading lamps are the kind most often purchased on impulse. Additionally, the majority of lamp-buying households buy for themselves and seldom buy a lamp as a gift.
The top factors consumers search for when lamp shopping are style and appearance, quality, durability, price, color, size and functionality. They appear to find what they're looking for, as close ratios for lamps are high. In fact, the discount department store lamp close ratio is 99% — meaning 99 out of every 100 households that shopped for a lamp at a discount department store actually bought one there. The lamp close ratio for home improvement centers is 83%; for home accent/gift stores, 78% and for traditional furniture stores, 58%.
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