Survey data based on a poll from a select group of 109 industry executives showed that 80% of the surveyed group expect that purchasing volume will increase in 2017. In addition, 57% of respondents expect that customers will pay for new furniture in the coming year with existing credit cards, revealing an opportunity to work with a financing partner to offer co-branded credit cards for loyalty programs.
Michael Rittler, Head of Retail Card Services at TD Bank, observed, "In terms of trends that will impact the industry in 2017, the survey findings demonstrate tremendous optimism among furniture retail executives. This isn't overly surprising, but it's great news for the industry and all those who touch it. Our thoughts mimic the findings and we have confidence that the industry will continue to perform very well and will not be impacted by any changes to interest rates, however, as a financing provider this is something that will watch closely as we continue to develop card programs that benefit both the retailer and end consumer."
Key findings on an outlook for the furniture retail industry in 2017 include:
- More than half of furniture retailers (51%) believe that a potential interest rate hike will not impact furniture sales in the next 12 months.
- 61% of furniture retailers expect to expand upon high-end furniture product offerings in the next 12 months.
- 41% of furniture retailers will be re-evaluating financing partners for their business in the coming year. Respondents cited that a customizable program (40%) will be the most important factor to consider when selecting a partner in the coming year. Other factors of consideration include:
About TD Bank:
- Innovative end-user capabilities – 24%
- Quality of customer service – 18%
- Credit limits for the end user – 7%
- Credibility of the partner – 7%
TD Cards and Merchant Solutions is a top 10 card issuer in North America with over $24B in card receivables. TD Bank's credit cards are distributed nationally, leveraging our retail distribution network, direct response channels and through hundreds of partnership programs with financial institutions, retailers and other third party organizations, including private label financing.
Furniture World Magazine-Business solutions for furniture retailers