Home Accents Universe shrinks during tough 2008
Identifying the Size, Growth and Distribution Patterns
Susan Dickenson -- Home Accents Today, 12/30/2008 8:14:00 AM
The fact that our Home Accents Universe Study is a biennial rather than an annual event translates into a longer time period in which economic conditions can change. When we published our 2006 Universe Study, for example, the economy was still strong with predictions of continued growth.
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| Order HAT's 2008 "Universe Study" |
What we and everyone else didn’t see coming was the weakening real estate market’s effect on subprime mortgages … and the availability of credit … and the banking industry … and the hedge funds … and the stock market, all leading to a very serious consumer confidence crisis.
According to National Retail Federation Chief Economist Rosalind Wells, consumers responded to the worsening situation in September by “hibernating” -- pulling back on everything but the basics. The impact on furniture and home furnishings stores was an October retail sales number that was down 13% from the number reported in 2006, according to U.S. Department of Commerce statistics.
And now, consumers are making out their holiday shopping lists to the background news of a possible General Motors bankruptcy … and so goes the nation?
Hopefully not. Not the home accents universe, anyway. In fact, our numbers show that while there’s still some fallout to contend with, we should start to see a slow, steady climb back into positive territory about the middle of next year.
* For the complete article, see the December print issue of Home Accents Today. To order an exclusive electronic copy of the report, go to: http://furnituretodaystore.stores.yahoo.net/hatuniverse08.html
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