Home accent retailers are optimistic about business in 2006 and fairly confident they have the right product mix to satisfy their customers. Sixty-five percent of retailers surveyed said they expect 2006 sales to be stronger than 2005, compared to 46% who said 2005 sales are trending better than 2004. About the same number, 31% for 2006 vs. 29% for 2005, see little change.

That's the word from our 2006 Trends and Styles survey in which we asked retailers about the various categories of products and styles they carry.

Retailers say they will tweak their product mix this year, most notably dropping licensed products, candles and top-of-bed, and adding mirrors/wall decor, lamps and accent furniture, three of the most popular product categories for all home accent retailers. The net increase for mirrors/wall decor, the largest, is 24%; for lamps, 19% and for accent furniture, 16%. The net change for licensed products will be 17% fewer retailers carrying them; for candles, 12%; and for top-of-bed, 11% fewer stores stocking the category.

Retailers who forecast increased sales in the top three categories enthusiastically praised new lamp styles that are fun and said the category performs well because customers tend to seek unusual designs and high quality. Those who expect weaker performance in the category cite competition from mass market and lifestyle stores.

Similar comments in the categories of accent furniture and mirrors/wall decor also mention distinctive designs, but express some concern about price deflation.