Furniture business moving

Boost in home sales, consumer confidence spurs success in companion business

Web posted September 5, 1999

 Related story: Havertys furniture store paces growth with city's

By Lisa M. Lohr
Staff Writer

An economy that has charged up home sales also has boosted the revenues of furniture companies, as homeowners find they have empty rooms to fill.

Jay Weinberger, co-owner of Weinberger's Furniture Showcase on Washington Road, said the strong economy has strengthened consumer confidence and in turn, their business.

``The first six months this year were exceptional,'' he said. ``Consumer confidence is way up and more people have homes than ever before.''

Their boom in sales prompted them to expand -- adding a new, separate mattress department in March.

``When business is good, that's when we tend to remodel and add and Augusta has had many good years in a row,'' Mr. Weinberger said.

Havertys Furniture in Augusta also is expanding, a result of an upbeat economy. The company will complete a $1 million expansion in October.

Jeffrey Humphreys, director of Economic Forecasting at the Terry College of Business at the University of Georgia, attributes the furniture industry's success to strong population growth in Georgia that fueled the housing market.

``The housing market probably peaked early this summer,'' he said. ``And it's started to slow down. The peak in the furniture market lags the housing market peak by 12 to 18 months. I think we still have 12 strong months for the furniture market.''

Dr. Humphreys doesn't see a downfall in furniture sales even after the peak months, for lower or higher-end furniture.

``Barring a major dive in the stock market, it should remain relatively strong even after the peak. The baby boomers are moving into second homes and buying more fine furniture and we have a strong migration of young people, so we have strength at both ends of the spectrum of the furniture industry.''

The customers at The Bombay Co. represent this generation of furniture buyers. ``Most of our customers are empty-nesters and are moving from a larger home to a condo or smaller house,'' manager Anthoney Waters said.

The Wrightsboro Road store reflects the furniture industry's good fortune. According to Mr. Waters, sales at the Bombay store are up for July, even over the previous year when sales had been boosted by moving the store's location to the upper level of Augusta Mall.

Other high-end furniture stores such as Ethan Allen Interiors and Havertys, in addition to The Bombay Co., all report significant increases over the same period last year.

Furniture Today magazine ranks furniture stores by their sales in furniture, bedding and accessories in their Top 100 U.S. Furniture Stores survey. For 1998 sales, the average increase was 13.6 percent.

Heilig-Meyers was ranked No. 1, Ethan Allen was second, Havertys eighth and Bombay 14th.

John E. Slater Jr., president and CEO of Havertys, said the company looks forward to a boost in sales 12 to 18 months from now. More importantly, good employment, low inflation and interest rates, along with the continued strong housing market have strengthened the furniture industry, he said.

``Housing sales don't equivocate into immediate furniture sales, but the tremendous housing boom that the entire Southeast has enjoyed has built a huge bank of future sales for furniture retailers,'' Mr. Slater said. `` I think in the year 2000, things are going to be great.''

Lisa Lohr is a staff writer for The Augusta Chronicle. She can be reached at (706) 724-0851.