Jerry Epperson Sees Opportunities Arising Out Of Furniture Industry Challenges At Cory Home Delivery Conference

Furniture World Magazine

“Benefits to the furniture industry when the economy turns will be like never before. The people who have bought the 20 million homes in the last three years will have to buy furniture.” Jerry Epperson, furniture industry expert and recent inductee into the American Furniture Hall of Fame, has no crystal ball. Yet in his presentation at the recent first annual CORY Home Delivery management conference, he has telling things to say about the future of the industry. Sharing those insights in his characteristic soft-spoken, homespun style before a packed room at the CORY retreat, Epperson foresees a bright future for an industry currently in turmoil. “As odd as it sounds, though the last two years back to back have been the worst since World War II, this will be the best decade we’ve ever had,” says Epperson, 54. The industry observer and commentator points to several reasons, most notably trends in consumer spending habits, to explain why. Today’s Baby Boomers, the population currently between 38 and 56 years old, have large incomes and need big houses, he observes. Some are coming into large inheritances, which they are using to buy second homes and indulge their children and grandchildren. “Our children have grown up with computers and are highly entrepreneurial. They have money we are giving them. They will hit our economy even stronger than we did.” Six million homes have been sold this year, and houses today are bigger than ever before. The average home today is 2,300 square feet. In the 1950’s, it was 900 square feet — in the 1970’s, 1,500 square feet. Mortgage and car financing rates are low, fueling the urgency to purchase homes and cars, he adds. There is no such across-the-board urgency, however, to buy furniture, though retailers are now offering incentives such as paying sales tax and free delivery. “Benefits to the furniture industry when the economy turns will be like never before,” he says. “It’s important to build the base so that when business comes back, the industry is prepared." Imports have impacted the business significantly, he notes. “We are now in a global economy and we must be global as well.” The furniture industry presents an opportunity for people who are smart. It is also an opportunity to change. “The hope is that technology and just-in-time delivery would change the way business is done,” he says. “Many retailers misunderstand the concept of a warehouse. They mix it up with a closet, overstuffing it with goods they don’t know they have.” The industry needs to reinvent itself, as Rooms To Go and Ethan Allen have done, he suggests, adding, “We’re still looking for the Levitz of the next generation.” Though there are problems to be surmounted, there are opportunities in what Epperson sees as a growth industry. The people who have bought the 20 million homes in the last three years, he says, will have to buy furniture. The name CORY is Number One in home delivery, he notes, adding that though it is a tough mantle to carry, there are many companies that would like to be in that position. “In today’s challenges are opportunities like you’ve never seen before,” he concludes. “You just need to remember what’s out there.” For more information, call Patrick Cory in Jersey City at 201-795-1000, extension 240, or visit the CORY Home Delivery Service Web site at www.corycompanies.com.