Sarasota Herald-Tribune
Southwest Florida furniture retailers are experiencing a renaissance after the deepest recession since the 1930s.
Though the official turn in their fortunes has yet to show up in sales figures compiled by state government, furniture sellers are reporting a big jump during the last several months.
With its deep reliance on the retail trade and real estate, the upturn in sales is a good sign for the region. As with other big buys, furniture purchases tend to be a leading indicator of an economic downturn -- something people cut out first when they are feeling less wealthy or are nervous about their job prospects -- and then a trailing thermometer for a recovery.
Michael Bush, who owns the contemporary furniture store Home Resource in Sarasota's Rosemary District, said his December sales were the best in the company's 15-year history, representing a 135 percent increase when compared with last year's dismal results.
Other furniture retailers were more reluctant to reveal their specific performance, but all said business has been improving as their new numbers cycle over 2008 figures that were dismal.
"We are undoubtedly seeing an uptick and are definitely optimistic about the future," said Jeffrey Seaman, chief executive of the Tampa-based Rooms to Go furniture chain. "But Florida sales have fallen so far since the boom that current sales don't even approach what they were back then."
Still, in a market in which year-over-year sales have declined every month from April 2005 through October 2009, and have fallen more than 50 percent during that period, any positive news is a cause for celebration.
Other promising signs include growth at some furniture stores in spite of the recession.
Rooms to Go, which operates in nine states, is expanding its Cortez Road showroom in Bradenton from 13,000 to 25,000 square feet, and is spending more than $6 million to build a new 30,000-square-foot showroom on Tamiami Trail in Sarasota.
Bacon's Furniture recently opened a Room Solutions showroom on Tamiami Trail in Sarasota for bargain-seeking customers.
"Room Solutions is more of an economy store," said Bill Bacon, who runs his family's three-store chain from Port Charlotte. "It's like having Chevys in one store and Cadillacs in the other. You can't always mix them together. They have two different sets of customers."
Both retailers and analysts say the increased sales of foreclosed and short sale properties is the main reason behind the rising demand for furniture, and stores offering lower price points are tending to do better than higher-end chains.
Though the official turn in their fortunes has yet to show up in sales figures compiled by state government, furniture sellers are reporting a big jump during the last several months.
With its deep reliance on the retail trade and real estate, the upturn in sales is a good sign for the region. As with other big buys, furniture purchases tend to be a leading indicator of an economic downturn -- something people cut out first when they are feeling less wealthy or are nervous about their job prospects -- and then a trailing thermometer for a recovery.
Michael Bush, who owns the contemporary furniture store Home Resource in Sarasota's Rosemary District, said his December sales were the best in the company's 15-year history, representing a 135 percent increase when compared with last year's dismal results.
Other furniture retailers were more reluctant to reveal their specific performance, but all said business has been improving as their new numbers cycle over 2008 figures that were dismal.
"We are undoubtedly seeing an uptick and are definitely optimistic about the future," said Jeffrey Seaman, chief executive of the Tampa-based Rooms to Go furniture chain. "But Florida sales have fallen so far since the boom that current sales don't even approach what they were back then."
Still, in a market in which year-over-year sales have declined every month from April 2005 through October 2009, and have fallen more than 50 percent during that period, any positive news is a cause for celebration.
Other promising signs include growth at some furniture stores in spite of the recession.
Rooms to Go, which operates in nine states, is expanding its Cortez Road showroom in Bradenton from 13,000 to 25,000 square feet, and is spending more than $6 million to build a new 30,000-square-foot showroom on Tamiami Trail in Sarasota.
Bacon's Furniture recently opened a Room Solutions showroom on Tamiami Trail in Sarasota for bargain-seeking customers.
"Room Solutions is more of an economy store," said Bill Bacon, who runs his family's three-store chain from Port Charlotte. "It's like having Chevys in one store and Cadillacs in the other. You can't always mix them together. They have two different sets of customers."
Both retailers and analysts say the increased sales of foreclosed and short sale properties is the main reason behind the rising demand for furniture, and stores offering lower price points are tending to do better than higher-end chains.
"There's a lot more traffic. But shoppers are competitively comparing prices," said Ed Kalin, the owner of Kanes of Sarasota. "It's hard to make any money because margins are so thin."
Kalin has been loading up on furniture that he has been able to buy from manufacturers at a discount.
For example, he was recently got a good deal on barrel chairs that usually sell about $500. He bought a shipment, advertised them for $199 and sold them all within a month.
"People are looking for value," Kalin said. "Stores that can't diversify are having more trouble than stores that the ones that can change gears."
The increase at the lower end of the market does not necessarily mean that the upper end is suffering, though. Higher-end retailers say they are also benefitting from both increased home sales and a reinvigorated remodeling trend.
Bush, who sells Knoll, Herman Miller, Vitra and other iconic brands from his Rosemary District store, said he is seeing an increasing number of Canadian and Midwestern baby boomers tour his showroom.
"These are smart people," Bush said. "They know home prices in our area are still relatively depressed and are taking advantage of the market."
There are a lot of baby boomers and lot of foreigners, agreed Bacon of Bacon's furniture.
"I'm a firm believer that the uptick was caused by the weather up north and the fact that home prices here are so low," he said. "The summer was tough for everyone but we're starting to see things turn around."
Not every furniture retailer will be able to enjoy better days ahead.
Simon's Quality Used Furniture Store on Tamiami Trail has been vacated, and DeSears, which had a small furniture line, shut down after Thanksgiving.
Steven's Furniture in Venice, which opened for business in 1983, also appears to be in trouble. The company's answering machine at its Venice store refers customers to its Sarasota operation, and its Sarasota answering machine has stopped taking messages.
E-mails sent to both stores, asking whether they are still open for business, went unreturned.
Sarasota resident Alice Richey, who bought a living room set from Steven's Furniture in December, said she has been unable to get in touch with company employees and is now planning to file a small claims suit that will cost her just over $200.
After trips to the Sarasota Police Department and Sarasota County Sheriff's Office, she was told that was all she could do.
A 50 percent drop in sales is tough for any business to absorb, and that is what Southwest Florida furniture retailers have been through during the past five years.
In Sarasota County, sales of all furnishings, including school furniture, have dropped 54 percent to $151.4 million from $326.9 million over the same period, while in Manatee County, they have fallen 47 percent to $63.7 million from $119.5 million.
In Charlotte County, sales have dropped 55 percent to $44.7 million during the first 10 months of 2009 from $98.8 million during the first 10 months of 2005.
"The drop has been huge," said Seaman, the chief executive of Rooms to Go. "When you start comparing the latest numbers to last year, you're comparing to extremely easy numbers. But at least the market is stabilizing."
"Things are starting to turn," he said. "I'd call it the beginning of a new beginning."
Kalin has been loading up on furniture that he has been able to buy from manufacturers at a discount.
For example, he was recently got a good deal on barrel chairs that usually sell about $500. He bought a shipment, advertised them for $199 and sold them all within a month.
"People are looking for value," Kalin said. "Stores that can't diversify are having more trouble than stores that the ones that can change gears."
The increase at the lower end of the market does not necessarily mean that the upper end is suffering, though. Higher-end retailers say they are also benefitting from both increased home sales and a reinvigorated remodeling trend.
Bush, who sells Knoll, Herman Miller, Vitra and other iconic brands from his Rosemary District store, said he is seeing an increasing number of Canadian and Midwestern baby boomers tour his showroom.
"These are smart people," Bush said. "They know home prices in our area are still relatively depressed and are taking advantage of the market."
There are a lot of baby boomers and lot of foreigners, agreed Bacon of Bacon's furniture.
"I'm a firm believer that the uptick was caused by the weather up north and the fact that home prices here are so low," he said. "The summer was tough for everyone but we're starting to see things turn around."
Not every furniture retailer will be able to enjoy better days ahead.
Simon's Quality Used Furniture Store on Tamiami Trail has been vacated, and DeSears, which had a small furniture line, shut down after Thanksgiving.
Steven's Furniture in Venice, which opened for business in 1983, also appears to be in trouble. The company's answering machine at its Venice store refers customers to its Sarasota operation, and its Sarasota answering machine has stopped taking messages.
E-mails sent to both stores, asking whether they are still open for business, went unreturned.
Sarasota resident Alice Richey, who bought a living room set from Steven's Furniture in December, said she has been unable to get in touch with company employees and is now planning to file a small claims suit that will cost her just over $200.
After trips to the Sarasota Police Department and Sarasota County Sheriff's Office, she was told that was all she could do.
A 50 percent drop in sales is tough for any business to absorb, and that is what Southwest Florida furniture retailers have been through during the past five years.
In Sarasota County, sales of all furnishings, including school furniture, have dropped 54 percent to $151.4 million from $326.9 million over the same period, while in Manatee County, they have fallen 47 percent to $63.7 million from $119.5 million.
In Charlotte County, sales have dropped 55 percent to $44.7 million during the first 10 months of 2009 from $98.8 million during the first 10 months of 2005.
"The drop has been huge," said Seaman, the chief executive of Rooms to Go. "When you start comparing the latest numbers to last year, you're comparing to extremely easy numbers. But at least the market is stabilizing."
"Things are starting to turn," he said. "I'd call it the beginning of a new beginning."
