Economic downturn affects furniture sales
April 20, 2008
With the economy in its current downturn, some furniture stores have been experiencing a decrease in sales.
As this slump continues, it has the potential to largely affect other parts of the economy. Without new homes, many people don’t see a need for new furniture, either.
Howard Smith, vice president of Home Now Furniture, 2498 DeKalb Ave., Sycamore, said his furniture sales have slowed down.
Smith, who monitors his sales closely, said he has noticed the trend since mid-summer.
There are a couple of contributing factors besides the mortgage crisis, such as rising gas and food prices, Smith said.
He expects to recover from the low sales in about six to eight months.
Mike Kisluk, owner of Mattress Warehouse, 1224 E. Lincoln Highway, DeKalb, said his sales are lower than what they were last year but was not sure if the mortgage crisis had a direct
correlation.
“There’s more competition in DeKalb than a year ago,” Kisluk said. “DeKalb and Sycamore are still growing.”
Kisluk also said the industry tends to be oversaturated when it comes to selling mattresses.
At locations where furniture prices tend to be lower, sales seem to be consistent and not declining. Instead of consumers spending their money on more expensive items, they are budgeting their money.
Jeff Kremz, corporate manager of Rent-a-Center, 1748 Sycamore Road, where consumers can rent to buy their furniture, said they have not had any drop in sales.
Whatever, 125 S. Fourth St., which sells used furniture, has not seen a drop or rise in their sales, said owner Nadine King.