Soft goods in the home accents universe focus on decorative pillows and luxury top of bed, both strong categories at the higher end of the market. Overall, these soft goods represent about 5% of the market with 2005 sales of $3.4 billion expected to grow to $3.5 billion in 2006.

Among the strongest channels in soft goods are home accent/gift stores with 2005 sales of $640 million and lifestyle stores with sales of $460 million. Together they represent about 32% of the market, which they are expected to hold in 2006.

The direct-to-consumer channel is expected to grow substantially in this category from 2005 sales of $430 million to $460 million in 2006, a 7% increase. Also expected to show growth is the interior designer channel which sells a lot of custom design in the category.

No. 1 is the discount department store/off-price retailer. With stores like Wal-Mart introducing its Hotel Bedding Collection in 700 stores in August and number of doors increasing, the channel is expected to continue its dominance. Sales of $1.2 billion in 2005 is expected to grow about 5% for 2006.