Dipped Dollars in the Furniture Basket: A 4.6% Slump in First-Quarter Sales
Decrease observed in revenue for furniture sector
Facebook Twitter Whatsapp E-Mail Print Copy Link The wallet's getting a tighter squeeze: Consumers are spending less on furniture these days, with the industry recording a staggering 4.6% drop in sales to €3.9 billion in Q1 2025 compared to the previous year.
"The murky waters of politics and ballooning living expenses have cast a long shadow over our industry's first-quarter sales," remarked Jan Kurth, CEO of the German Furniture Association (VDM). "Germans are more likely digging holes for their hard-earned euros instead of investing in fancy furnishings these days."
A Snapshot of the Economic Landscape
- Soaring inflation rates might be causing a pinch in our wallets, with Germany's April 2025 inflation reaching 2.1% [4]. Rising costs and lower purchasing power may deterring consumers from splashing out on holiday homes and armchairs.
- The departure of Wayfair from the German market in January 2025 could've reshuffled the competitive landscape, potentially impacting consumer choices and nudging other retailers to tweak their strategies [1].
- Globally, logistical challenges—as experienced by Wayfair—might be affecting the supply chain and delivery systems of various suppliers and retailers, leading to potential inventory chaos [1].
- A shift in consumer preferences, be it towards online or offline shopping, could also be impacting sales. For example, Maisons du Monde saw a dip in online sales in Q1 2025, hinting at broader trends in consumer behavior [3].
- A cloud of economic uncertainty hangs over Europe, and this could be swaying consumer confidence and spending habits, causing a ripple effect as far as furniture sales go, including in Germany [2].
"In consideration of the Community policy, it might be necessary for the industry to explore vocational training programs for employees, aiding in efficiencies to counter the effect of the current 4.6% slump in first-quarter sales and reduced consumer spending observed in the retail sector."
"To minimize the impact of soaring finance costs and inflation rates, such as Germany's April 2025 inflation reaching 2.1%, production houses might need to adjust their vocational training to adapt to streamlined operations, thereby reducing expenditure and increasing competitiveness."
