Is it 2025 yet? Retailers polled at High Point express optimism about sales next year
Retailers polled during High Point Market expressed optimism about a sales rebound in the first half of 2025.
HIGH POINT — Retailers attending High Point Market are expecting better times ahead and as early as the first half of 2025, according to a TD Bank survey taken Oct. 26-28 at the fall market.
Nearly half of the 139 retailer respondents expect home furnishings purchases to increase during the first six month of next year vs. one-third who anticipate flat sales and about 9% who believe sales will fall during that period.
There are several factors that retailers remain concerned about for their business over the next six months, led by economic uncertainty, which was mentioned by about 40% of respondents. Other top fears are the upcoming election (25%), price increases from inflation (10%) and interest rates (9%).
Of lesser concern but still on the table are price increases from suppliers (6%), continued supply chain disruptions (4%) and reaching new customers or clients (3%). Less than 1% said there they were worried there would be no need for new furniture.
“Our findings highlight the edge of uncertainty we’re seeing in the marketplace ahead of the election, with economic confidence continuing to be the top concern of attendees, followed by the election and price increases from inflation,” said Chris Guido, head of TD-owned brands, sponsorships and emerging opportunities.
“Despite this trepidation, it wasn’t a surprise to see that nearly half (48%) of respondents are confident that home furnishing purchasing will increase in the first half of 2025. Retailers are still feeling positive at the market, and we’ve seen the average consumer continuing to remain resilient in their purchasing choices,” he said.
“Most of the people we met with during High Point Market talked about how the industry was shaping for a better 2025 and beyond,” said Guido. “They were excited about a lot of the new merchandise that the manufacturers had on hand and that the housing market continues to remain healthy in most areas. Because of this, we remain very optimistic about the future.”
Right now, the survey showed, more than half (54%) of consumers are making purchases using credit or debit cards, followed by checks and cash (29.5%) and financing (16%). Buy-now-pay-later and personal loans make up a small percentage of the financing options at about 6% and 4%, respectively.
At 26%, living room/dining space furnishings were the products retailers strongly believe customers will be seeking in the upcoming months vs. office or work space furniture (16%). When those who somewhat agree are added in, the gap widened, with living and dining rising to about 64%, while office/work was cited by just more than one-third of those polled.
On the topic of buying luxury or expensive furniture, retailers are split, with 42.45% saying customers have been more willing to buy high-end items over the past three months and nearly as many (41.73%) espousing the opposite belief.
Interestingly, where consumers will be shopping tilted in favor of online vs. in-store. About 52% strongly or somewhat agreed that they are seeing more interest among consumers in online shopping, while just 35% strongly or somewhat agreed shoppers are more intent on buying at a store.
A little more than 14% strongly agreed there is increased interest in eco-friendly products. Taken together with those who somewhat agreed with that statement, the percentage rose to nearly 44%, but about 40% of retailer respondents remained neutral on the issue.
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