Texas has numerous furniture stores for sale and each has its own slightly unique approach to the market. The demand for furniture is generally driven by the housing (residential furniture) and employment (office furniture) markets. Recent improvements in both markets have made this an attractive business sector for acquisition.
The industry is highly fragmented, with the top 50 companies holding less than 30% of the total market share. Smaller stores can successfully compete with larger outlets nearby by providing special selections that appeal to particular market segments.
Listings of Furniture Stores For Sale in Texas
Dallas Furniture Store for sale - Outstanding location
Industry Overview
Most furniture stores operate out of a single location and typically gross less than $1 million in sales per year. Their profitability depends a great deal upon the owner's merchandising and marketing along with the general state of the housing and employment markets. The products carried are often divided into 2 industry categories "case goods" such a wood cabinets and "upholstered products". Most Texas furniture stores carry a wide variety of styles, yet still manage to maintain some type of concentration, such as bedding or office or western furniture.
Sizes of furniture stores for sale in Texas varies widely; however, a larger amount of space that other forms of retail is usually required for the showroom galleries. In addition, many furniture stores have their own warehouse, or share a single warehouse among several regional locations. While some merchandise can be carried in inventory, many furniture styles are made-to-order by the manufacturer and may have lengthy lead times. Inventoried items are readily available; however, they are generally bulky and slow moving, with perhaps only four or five turns per year.
Additional products and services are often employed to improve revenues. Associated items such as carpets or rugs may be carried by a furniture store. Store delivery and set-up plus water-proofing and other services may also be sold along with the store inventory.
Independent furniture retailers often purchase stock from a large number of industry trade shows that are held each year. The most important of these is the International Home Furnishings Market in the Spring and Fall. Furniture store operators will tend to carry a variety of brands, often creating special sections of the store for each.
Industry Benchmarks
Gross Margins for are generally high, often with a high cost of sales which will reduce profits. Maintaining some form of continual sales is of extreme importance. Having sales people on commission is a frequent practice that helps to mitigate the high cost of furniture sales.
With the possibility of smaller net profits, economies of scale can be very important. Larger stores can purchase directly from manufacturers without a wholesale intervention. Associations like the Associated Volume Buyers also allow smaller operations to purchase related items in a similar fashion.
Furniture websites are being established offering specialty selections at discounted prices. These are generally offer made-to-order items and are competitive because they have no inventory or showrooms to maintain.
Reasonable expense profiles as a percentage of sales for a furniture store business opportunity are:
Cost of Goods Sold: 30%
Labor Costs: 15%
Occupancy Costs: 20%
Pretax Profit: 20%
Request additional information from Bob Fariss
Fields marked with * are required.
