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Ready-to-Assemble (RTA) Furniture Retail in the U.S. 2022

U.S. outdoor furniture market

The furniture market worldwide is expected to grow to 651 billion U.S. dollars by 2027. Ready-to-assemble furniture is a segment within the furniture market, estimated to be worth 13.8 billion U.S. dollars as of 2020. RTA furniture is most commonly used in homes, with only 33 percent used for office. In a combination that provides flexibility as well as organization, home offices have become popular in recent years, contributing over one billion U.S. dollars to the RTA furniture market in 2018. This trend is expected to accelerate with the coronavirus pandemic, forcing many Americans to work from home.

Ready-to-assemble, as the name implies, is furniture that gets put together by the consumer after purchase. RTA furniture is less expensive to ship or store, as it takes up less space and is assembled by the customer instead of the retailer. Retail sales of RTA furniture in the United States reached over 3.4 billion U.S. dollars in 2019. The majority of RTA furniture is made out of wood, though steel and glass are other frequently used materials, providing a variety of stylish interior design options.

One of the most well-known players in the RTA furniture market, Swedish furniture retailer IKEA recorded nearly 40 billion euros in sales in financial year 2020. Europe had a total of 279 IKEA stores throughout the continent, while North America had 67 as of 2019. Within the United States, IKEA is the top shopping destination for furniture. Most of IKEA’s sales come from bedroom and bathroom products.

Consumers often buy ready-to-assemble furniture in the context of renovating their home, perhaps because of the shared do-it-yourself spirit seen in RTA products and home improvement projects. Potential purchasers strongly value an RTA piece’s level of quality and look for products that are typically affordably priced. Consumers expect to pay less than 100 U.S. dollars for most RTA furniture products.

Table of Contents
Introduction
Financial numbers
Companies
Employees and salaries
Innovation
Appendix

1. Introduction 

Industry definition
Retail: Furniture
63% of the world population live in countries with medium, high, or very high pandemic risk levels
Stringent and widespread containment and public health measures are imposed in the world
Generous fiscal policy measures are being introduced in the U.S. and many parts of the world
Pandemic developments in the United States
GDP level in the U.S. is expected to return to its 2019 level in 2021
Retail: Furniture-Risk assessment
21% of consumers in the United States regularly shop at physical furniture stores
In 2019, the transportation sector accounted for 28.7% of total emissions in the U.S.

2.Financial numbers

Industry revenue to increase by 4.7% p.a. from 2021 to 2025
Furniture stores fell by about 15% in 2020
With a revenue of US$101.5 billion, retail furniture ranked 33rd in 2020
FDI in this industry amounted to US$1,366 million in 2020
Retail trade to contribute 6.2% to the GDP in 2021
Value added by this industry to grow by 15.0% from 2020-21 which is higher than all industries combined
In 2020, California had the highest added value in this industry
The retail trade sector had the largest gap between revenue and expenses in 2019
EBITDA in the consumer services sector is significantly higher than in the other sectors
Market revenue expected to increase by 3.5% p.a. from 2020 to 2025
With revenues of $69,389m, the United States ranks 2nd in 2021

3.Companies

The home depot, Inc. registered the largest revenue in 2020
The number of establishments decreased by 1.8% in 2019
In 2018, 23,166 establishments were active in "Furniture Stores"
The number of establishment births increased by 0.4% in 2019
The number of establishment deaths increased by 7.4% in 2019
Store profiles for homedepot.com and wayfair.com
Store profiles for potterybarn.com and bedbathandbeyond.com
The online shopper in the U.S.

4.Employees and salaries

The number of employees increased by 0.03% p.a. from 2011 to 2021
The share of employment for "Retail trade' amounted to 10.2% in 2020
The number of full-time employees decreased by 4.9% from 2019 to 2020
Working hours in the industry were below the private industry level in 2021
The unemployment rates in the industry were higher than the sector rates in 2020
The annual mean wage increased by 2.6% from 2013 to 2020
General and Operations Managers earn the highest wages in the industry
Female employees earn less than male employees
385,400 bachelor degrees were awarded in "Business, management, marketing & rel. support serv." in 2018
Job automation is shaping the future of work across all industries

5.Innovation

The R&D intensity was 0.04% in 2020

6.Appendix

Methodology, classification and data used in this report
About the forecasting methods
Cost benchmark
About the Statista Industry Reports
About the Statista Global Consumer Survey 2021
About the Statista Digital Market Outlook
About the ecommerceDB
About the Statista Industry Outlook
About the Statista CompanyDB
About Statista Q
Atatista Content & Design
Authors

Source from Statista.

Disclaimer: The information set forth above is provided by Statista independently of Alibaba.com. Alibaba.com makes no representation and warranties as to the quality and reliability of the seller and products.

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