BOSTON — Consumers are unhappy with the prices they are paying for products in the current tariff environment, including furniture, and will likely opt to trade down in response, according to new research from L.E.K. Consulting.
Among shoppers who purchased furniture within the past 12 months, 60% believed the price they paid for it was above the level they deemed acceptable. This was true for 66% of those buying dining tables, 62% of sofa purchasers and 61% of mattress buyers. For the entire durable goods category, which includes furniture, décor, housewares and major appliances, 61% believed they paid more than the acceptable amount.
The national survey of 2,000 U.S. adults this summer, which also tracked sentiment related to apparel, vehicles, personal care/beauty, pet supplies and groceries, found 68% believe they are the ones paying for tariffs.
See also:
“Consumers are feeling price pressure in home furnishings already,” said Carter Bielen, managing director and partner in the consumer practice at L.E.K. Consulting, which requires retailers and brands to understand that trading down is in play.
Additionally, he said furniture prices are rising faster than the rate within other categories, which creates added strain on the home furnishings consumer. Although the survey didn’t find a significant number of respondents putting off furniture purchases, more were considering going with less expensive items, he said. The survey showed 83% of consumers would buy lower-priced durable goods and 68% planned to reducing spending on major household items.
In an environment where consumers are feeling squeezed and may be looking to trade down, it’s important, said Bielen, to have a strategy for consumer engagement.
For retailers and brands, Bielen offered a few suggestions for how to deal with this situation, including focusing on product innovation with a visible point of differentiation, having a pricing strategy that drives value, marketing with a focus on the right channels and proper messaging and creative, and developing a customer engagement strategy that meets the consumer where they are.
Bielen noted the furniture acquisition cycle is long and that retailers and brands should plan to engage customers from research through purchase.
Even though furniture shoppers are feeling added price-related pressure, Bielen said he still sees opportunity at the high end as well as the lower one. “I think all retailers have the opportunity to differentiate,” he said.
