The recently concluded High Point Market was a mixed bag, with the results — much like beauty — in the eyes of the beholder. Whether it was a strong market or a weak one depended very much on who you spoke with and, as importantly, who they sell.
With that as a caveat here are a few reflections on the market.
- High Point is really two markets. The increasingly common practice among the largest furniture chains to shop market days before the official opening has now become the norm. Many manufacturers reported having appointments on Monday and Tuesday before Saturday’s official opening day. In line with that, several of the largest Top 100s were gone by Friday and Saturday. The result has been a growing shift of party and event activity to the Thursday and Friday before Market’s opening. Expect that to continue.
- Who came away happy? In general, and please remember there are always exceptions, those expressing the most satisfaction with this fall’s market fell into two camps. The first is those manufacturers selling the largest Top 100s. Most of the majors were in town and ready to add new goods to their selling floors. The other group that reported having a solid market was those companies that are positioned to sell the growing number of interior designers who attend market. This group now represents more than 60% of registered attendance and are often still working right up to the closing bell.
- Is the furniture industry single-handedly trying to reverse inflation? Those who think the cost of everything is going up obviously did not attend market last month. This fall saw some of the most aggressive pricing in years in key categories, pricing that could touch off a price war or two. Across all price segments the key word was “value.” And while that did not always mean lowest price, it did mean packing on extra features, function and style regardless of price point.
- Going, going … As always, market was rife with rumors of companies on the bubble. In retrospect it’s no surprise that Franchise Group’s American Freight was top of the list when it came to handicapping who would follow Conn’s/Badcock into bankruptcy. Given widespread discussions about who is paying their bills, who’s behind and who’s next off the merry-go-round, expect at least one more shoe to drop before year-end.
- Light at the end of the tunnel. Despite all the challenges, this remains an optimistic industry, and there was a clear sense of that throughout the market. Whether companies reported having good attendance and sales activity or not, there was a clear feeling that things are getting better, and the signs of a reinvigorated business might finally be within sight, particularly with the election in the rearview mirror. There remains widespread sentiment that the New Year will bring new opportunity along with consumers back into the stores.
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