GLR sees sales uptick in furniture and mattresses

OTTAWA – The 80-member Group of Large Retailers (GLR) saw their sales of furniture and mattresses advance nicely in 2015 while seeing only a minor uptick in home furnishings sales coupled with a decline in both major appliance and television sales, according to the latest figures from Statistics Canada.

The national bean counter set GLR furniture sales at an actual and preliminary $257.4 million for December 2015, a 4.2% upswing from the revised $246.9 million for November. Sales were also up 7.7% from the $238.8 million sold in December 2014.

For the 2015 year, GLR furniture sales were $2.71 billion, a 4.9% advance from the $2.59 billion for 2014. Not only was it the sixth consecutive year of growth for the category, sales set a new record high.

Mattress sales were up for the second consecutive month in December having been pegged at a preliminary $78.3 million; up 1.3% from the prior month’s revised $77.3 million. They were also 12.6% higher than the $69.5 million sold in December 2014.

GLR mattress sales for the 2015 year were $843.9 million, up 13.9% over the $740.9 million for the prior year ago. However, sales still lag behind the record $857.3 million set in 2008.

Major appliance sales were estimated at $159.1 million for the month, slipping 5.0% from the revised $167.4 million for November and down 7.9% from the $172.9 million sold in December 2014.

For the year, white goods sales were $1.86 billion, down 1.8% from the $1.89 billion rung-up in 2014. This was the third consecutive year of decline appliance sales for the GLR, which reached their high water mark of $2.11 billion in 2010.

GLR sales of televisions and audio/visual equipment were set a preliminary $488.2 million for December, leaping a Holiday Season inspired 47.1% from the revised $331.9 million sold in November but down 10.1% from the $543.2 million sold in December 2014.

Many observers note the decline for this category has been driven by two factors: declining prices and its increasing popularity on the e-commerce front.

Sales of this sub-set of consumer electronics were down 6.4% for the 2015 year at $2.58 billion, compared to the $2.76 billion rung-up in 2014.

Home furnishings sales – which cover everything from floor covering to lamps and lighting, decorative accessories and wall art – totaled a preliminary $397.0 million for December, up 3.6% from the revised $383.0 million sold during the prior month but down a slight 1.0% from the $401.1 million sold in December 2014.

Like televisions and audio/visual equipment, home furnishings are a category that peaks regularly during the Holiday Season. As in 2015, December is traditionally the category’s highest month for sales each year.

Sales for the 2015 year were $3.01 billion, up a minor 1.0% from 2014’s $2.97 billion.

Statistics Canada put the value of all GLR big ticket home sales at $11.0 billion for 2015, up a modest 0.6% from the $10.9 billion in 2014. However, its slice of the merchandise sales mix fell sharply to 8.7% from 9.8% in 2014.

Total commodity sales for the GLR were $125.7 billion for 2015, up 11.4% over the $111.4 billion sold in 2014. With its very modest bump, big ticket home was one of the poorest performing product categories.

While the dollar volumes for the group are preliminary estimates, they are unadjusted for seasonality or other factors.

In addition to its monthly report on retail store sales and its quarterly report on retail sales by commodity, Statistics Canada also reports on sales by commodity for what is termed as its group of large retailers. These are the 80 retail companies that, for the most part, have stores across the country or are dominant players in their home province.

For the big ticket home category – including furniture, mattresses, home furnishings, appliances and consumer electronics – the group of large retailers includes: the Brick; Leon’s Furniture; The Source; IKEA Canada; BMTC Group; and, Best Buy Canada. The Calgary-based, 27-unit CE specialist Visions Electronics, among others, is also a member.

Several of this country’s largest general merchandise store operators with active big ticket home goods businesses are also included. Among these are: Hudson’s Bay Company (HBC); Sears Canada; Walmart Canada; and, Canadian Tire, among others.