by At least not among retailers queried during at last month’s Las Vegas Market
LAS VEGAS — The latest TD Bank retail furniture survey confirms everything the industry has been talking about for months — everything, that is, except retailers’ buying appetite.
Retailers are concerned about inflation, the supply chain and a softening economy (though not necessarily in that order). And they’ve been able to pass on their price increases to the end consumer although, in some cases, it has cost them some business.
TD Bank conducted its survey with 121 retailers on the ground at the recently concluded Las Vegas Market. When asked about their biggest concern over what could impact business in the next 12 months, about 36% called out supply chain issues, about 35% said they were worried about a looming economic downturn, and just over 17% said rising inflation was the top-of-mind concern.
Some 9% were concerned about maintaining customer loyalty and only a handful were most worried about “access to resources and capital needed to innovate.”
The results mesh fairly well with what Home News Now has been hearing for some time, though the emphasis more recently seems to be on the economic downturn and weakening consumer demand.
Regardless of all the concerns, retailers for the most part indicated to TD Bank that the headwinds are not really impacting their buying habits. About 41% said their furniture purchasing will increase this year, while 26% said buying would remain steady. (It should be noted here that all respondents were attending a furniture market at the time of the interviews.)
Ninety-one retailers, or just over three-quarters of respondents said they have raised prices due to the current inflationary environment, and 41% of those who said they have raised prices or planned to raise prices said that price increases have not impacted sales and inventory. However, nearly one-third said higher prices have led to lower sales.
Other results from the survey:
- 49% of respondents said they have not observed an uptick in customers using financing to make purchases over the past year (17% did, and 33% were unsure or don’t offer financing.
- Most of the retailers queried said they have not adjusted their financing offerings due to inflation and increased interest rates. (HNN, meanwhile, discovered some trying something fairly new). 12% said they are considering expanding their financing offerings.
