DEB’S RETAIL DISH AND DEALS: WHERE THE HEART IS

First it was the pandemic. Then it was the aging of the baby boomers and millennials finally buying homes and starting families. The result: we’ve become a nation of homebodies.

Debra Hazel

Debra Hazel Communications

North Las Vegas, NV

(201)618-5247

And retail is reflecting that, as sellers of home goods are expanding their brick-andmortar plans. Ikea is dedicating $2.2 billion to expanding its traditional and smaller format stores around the U.S. Wayfair is continuing to grow its store count, as are At Home and luxury chains including Coco Republic. Walmart and Target are bumping up their décor departments, frequently with designer partnerships. Wichita Furniture & Mattress leased a former Kmart space last month, while in St. Louis, Kloss took a former supermarket late last year. Utah-based BlvdHome, which sells appliances as well as furnishings, opens this month in Las Vegas.

All of this is taking place with ongoing supply issues, a slowdown in home purchases with the rise of mortgage rates, less discretionary spending due to inflation and an increase in e-commerce. Still, a Statista survey in late 2022 found that 53% of respondents reported shopping for furniture in-store.

But expansion could be problematic in the future. Just as you don’t buy a new car or 85inch TV every year, neither do you buy a sofa annually. Focusing on smaller décor items and filling in the gap left by the demise of Bed Bath & Beyond can help.

It’s not just décor that indicates cocooning. Comscore Movies reported that although ticket sales in 2022 rose 65% over 2021 in North America, they're down 35% from the 2017-2019 average. Some of that can be attributed to a lack of new films as production is still ramping up to pre-pandemic levels.

On the positive side, what about all those furry friends who were adopted for company during the pandemic? Mostly, they’re still in their new homes. The Shelter Animals Count national database noted that while the number of animals entering shelters continues to increase slightly each year since the pandemic, the figure is still down 16% from 2019.

“The increased number of animals in shelters today is a combination of many factors, but nationally, it is not being driven by an increase in owner surrenders. Owner relinquishment rates remain consistent in the last four years at around 25%,” it reported.

So larger chains are acquiring small ones, such as Pet Supplies Plus, which acquired 20 Loyal Companion Pet Stores and announced a planned expansion throughout the Northeast.

That said, gyms are back to pre-pandemic levels, and restaurants remain packed, so socialization isn’t completely dead. As anyone who has purchased a plane ticket lately knows, travel is strong.

But perhaps after being forced to stay at home, then a burst of freedom, we’re finding a new appreciation for hearth, home and family (including our four-legged members). Retailers should keep an eye on all.