“We must remain optimistic for 2024”, launched Didier Baumgarten, president of the National Confederation of Home Equipment (CNEF) – which represents 70 distribution brands, from generalists, such as But, Conforama, Ikea… to specialists in fitted kitchens – during the presentation of the results of the furniture sector, Wednesday February 7. An almost incantatory formula given the health of the market.
In 2023, sales of furniture to individuals fell by 2.5% in value, to 14.6 billion euros and “around 8%” in volume. This is well beyond the industry’s forecasts, which expected a 5% drop. The end of the year was “more tense”, “especially in terms of traffic at points of sale”specified Guenhaël Seveno, president of the Institute of Prospecting and Furnishing Studies (IPEA).
Almost all categories were affected: so-called furnishing furniture, such as tables, chairs, cupboards (− 0.1% over one year), integrated kitchens (− 6.9%), sofas, armchairs and benches (− 1.8%), garden furniture (− 4%), bathroom furniture (− 5.6%). Only bedding, which had not benefited like the others from the post-Covid rebound, did well, with an increase of 1.2% in value in 2023.
A “historic fall”
Same observation among household appliance professionals: 9.5 billion euros in turnover in 2023, a decline of 2.2% over one year (with 63.7 million products sold), according to the data of GFK unveiled Thursday February 8 by Gifam, a group of home appliance brands. Large household appliances suffered more (−3.6% in value and −7% in volume) than small ones (stable in value and −6% in volume).
After a prosperous post-Covid period, during which the French renewed their interiors, the home equipment market is going through a difficult period. Even the winter sales, which ended on February 6, failed to reverse the trend. Consumption in DIY, decoration and interior design stores fell by 7% during this period compared to 2023 – like the average basket, which fell from 72 euros to 69 euros –, according to the Digital Barometer & payments from BPCE L’Observatoire.
With food expenses absorbing a large part of their budget with inflation, many households have postponed their purchases of home furnishings. But, according to professionals, the real cause of this jolt remains the crisis in the real estate market, following the rise in interest rates, which has restricted the financing capacities of households. “Between December 2022 and November 2023, housing starts fell below 300,000 units for the first time since 1997”, recalls the furniture industry. The National Real Estate Federation (Fnaim) speaks, for its part, of a “historic fall” of 22% of sales in 2023, with 875,000 transactions in existing properties, according to figures announced in mid-January.
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