New York – The era of slack home textiles sales isn’t quite over, but there’s still money to be made.
That was the upshot of HFPA’s data-driven TexTalks webinar, which included breakouts for the fastest growing categories in bedding, bath and kitchen/table linens in 2023.
The keynote speaker was Joe Derochowski, advisor and VP of home industry with Circana (formerly known as the NPD Group).
Here are3 key takeaways form the hour-long session:
Growth will resume in mid-2025
Derochowski is forecasting that the next 6 quarters are going to be a slog for the home textiles business, with sales declines continuing until mid-2025.
Sales in 2026 will see a bump, driven in part by a rebound in 1st-time home buyers.
Soft home sales in 2027 will probably run flat.
Growth should be steady in 2028, 2029 and 2030, he said.
Even with the difficult immediate-term terrain, he said, “There’s money going to be made these next quarters and there’s money to be made this decade.”
Pricing metrics are snapping back into place
The traditional pricing and promotional model is back, said Derochowski.
“In the pandemic, if you were in demand you could raise prices and still sell more – and if you weren’t, you could drop prices and still not sell. What we’ve seen over the last 6 months is the return of those levers,” he explained.
One point of note: ASPs (average selling prices) in some home textiles categories are coming down, partly because consumers have shifted from buying sets to buying individual items.
Consumers are still focused on essentials and functionality
Product developers should consider ways to ease the pains and frustrations of how consumers live and how they use products, Derochowski advised.
Areas of opportunity he sees for home textiles include: the outdoor living trend, home remodels (which are leaning more toward DIY refreshes), campus living (he expects more students will be moving off-campus) and health – particularly products that foster better sleep.
Article sourse: https://www.hometextilestoday.com/