Table of Contents
Scope and Themes
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- Definition
- Data sources
- Sales data
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- The market
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- Figure 1: Fan chart forecast of total U.S. retail sales of furniture, 2007-17
- Market factors
- Fluctuating housing market affects furniture category
- Lifestage changes create demand for furniture
- Hispanic population growth and purchasing power impact furniture market
- Retail channels
- Despite many channels, most buy furniture at mass merchandisers
- The consumer
- Most buy furniture to replace worn-out items
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- Figure 2: Reasons for buying/renting furniture, April 2012
- Most purchase furniture at mass merchandisers
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- Figure 3: Retailers shopped for furniture, April 2012
- Most wait for sales to buy furniture, but will pay more for quality pieces
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- Figure 4: Attitudes to shopping for and buying furniture, April 2012
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- Figure 5: Impact of style on shopping for and buying furniture, April 2012
- Free delivery, removal and donation of furniture appeal to most
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- Figure 6: What retailers should do to encourage furniture shopping, April 2012
- What we think
Issues in the Market
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- How to kick start the furniture market given the slow recovery in the housing market?
- What can traditional furniture retailers do to combat increasing sales through mass, club, and other channels?
- How can retailers gain from household structure changes—boomerang children, multigenerational households, and Hispanic households?
- Can Baby Boomers and older generations be brought back to the market?
Insights and Opportunities
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- Offer designer collaborations to create differentiation
- Use technology to enhance shopping experience
- Offer interchangeable designs for home furniture
- Affordable DIY furniture items will appeal to budget-conscious shoppers
Trend Application
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- Inspire Trend: Moral Brands
- Inspire Trend: Experience is All
- Inspire 2015 Trends
- East Meets West
Market Size and Forecast
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- Key points
- Favorable outlook for furniture industry
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- Figure 7: Total U.S. retail sales of furniture, at current prices, 2007-17
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- Figure 8: Total U.S. retail sales of furniture, at inflation-adjusted prices, 2007-17
- Fan chart forecast
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- Figure 9: Fan chart forecast of total U.S. retail sales of furniture, 2007-17
Market Drivers
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- Key points
- Changes in housing market impact furniture industry
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- Figure 10: New houses sold in the U.S., by region, 2004-11
- Figure 11: Housing starts in the U.S., by region, 2004-11
- Consumer confidence linked to furniture purchases
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- Figure 12: University of Michigan’s index of consumer sentiment, January 2007-June 2012
- Lifestage changes create opportunities for furniture retailers
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- Figure 13: Annual number of weddings, 1950-2009
- Figure 14: Fertility rate and number of births, 2001-11
- Shifts in household size impact furniture needs
- The Hispanic Impact
- Growth of the Hispanic population
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- Figure 15: Population, by race and Hispanic origin, 2006-16
- Figure 16: Hispanic households, by type, 2010
- Figure 17: 10 places* with highest number of Hispanics, 2010
- Hispanic income lower than average
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- Figure 18: Median household income, by race and Hispanic origin of householder, 2000-10
- Hispanic households larger than average
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- Figure 19: Average household size, by Hispanic origin/race of householder, 2001, 2008, and 2011
Retail Channel Overview
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- Key points
- All channels poised for growth in furniture market
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- Figure 20: Total U.S. retail sales of furniture, by channel, at current prices, 2007-17
- Furniture stores account for greatest share of total furniture sales
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- Figure 21: Total U.S. Retail sales of furniture, by channel, 2010 and 2012
Furniture Stores
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- Key points
- Furniture stores rebounding from recession, expected to recover sales
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- Figure 22: Total U.S. retail sales of furniture through furniture stores, at current prices, 2007-17
Mass Merchandisers and Warehouse Clubs
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- Key points
- Strong growth predicted for mass merchandisers and warehouse clubs
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- Figure 23: total U.S. retail sales of furniture through mass merchandisers and warehouse clubs, at current prices, 2007-17
Other Channels
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- Key points
- Positive outlook for other channels
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- Figure 24: Total U.S. Retail sales of furniture through other channels, at current prices, 2007-17
Retailer Overview
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- Furniture specialists
- Crate & Barrel
- Williams Sonoma Inc: Pottery Barn/Pottery Barn Kids/PB Teen/West Elm/Williams-Sonoma Home
- Ashley Furniture Homestores
- Haverty’s
- IKEA
- Ethan Allen
- Rooms to Go
- Value City Furniture
- La-Z-Boy
- Aaron’s
- Pier 1 Imports
- Thomasville
- Market threats and opportunities for furniture specialists
- Mass merchandisers and warehouse clubs
- Target
- Walmart
- Costco
- Market threats and opportunities for mass merchandisers and warehouse clubs
- Department stores
- Macy’s Inc.
- JCPenney
- Sears
- Market threats and opportunities for department stores
- Home improvement stores
- Home Depot
- Lowe’s
- Market threats and opportunities for home improvement stores
Innovations and Innovators
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- Crate & Barrel launches 3-D room design, registry app
- IKEA combines TV, furniture into one piece
- Costco partners with Habitat for Humanity
- Belgian designer introduces DNA-inspired furniture
- Building furniture around technology
Marketing Strategies
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- Television advertising
- Aaron’s
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- Figure 25: Aaron’s TV ad, “Fore legs,” October 2011
- Ashley Furniture Home Store
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- Figure 26: Ashley furniture home store TV ad, “Expensive Taste,” February 2012
- Figure 27: Ashley furniture home store TV ad, “Huge Savings,” May 2012
- Macy’s
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- Figure 28: Macy’s TV ad, “Home sweet home,” May 2012
- Target
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- Figure 29: Target TV ad, “Just Imagine,” September 2011
- Other marketing activity
Incidence of Buying Furniture
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- Key points
- More than half of all surveyed have not purchased furniture recently
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- Figure 30: Incidence of buying furniture, April 2012
- Women more likely than men to buy furniture
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- Figure 31: Incidence of buying furniture, by gender, April 2012
- Younger consumers most likely to buy furniture
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- Figure 32: Incidence of buying furniture, by age, April 2012
- Higher income correlates to more furniture purchases
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- Figure 33: Incidence of buying furniture, by household income, April 2012
Amount Spent on Furniture
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- Key points
- On average, men spend slightly more on furniture compared to women
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- Figure 34: Amount spent on furniture/furnishings, by gender, October 2010-November 2011
- Younger buyers spend the most on furniture
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- Figure 35: Amount spent on furniture/furnishings, by age, October 2010-November 2011
- Spend on furniture increases as household income rises
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- Figure 36: Amount spent on furniture/furnishings, by household income, October 2010-November 2011
Retailers Shopped for Furniture
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- Key points
- Most purchase furniture at mass merchandisers
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- Figure 37: Retailers shopped for furniture, April 2012
- Women shop across a variety of channels for furniture
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- Figure 38: Store types shopped and furniture bought from (in store or online), by gender, April 2012
- Younger shoppers most likely to buy furniture at mass merchandisers, online retailers
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- Figure 39: Store types shopped and furniture bought from (in store or online), by age, April 2012
- Mass merchandisers favored for furniture across all household incomes
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- Figure 40: Store types shopped and furniture bought from (in store or online), by household income, April 2012
Reasons for Buying Furniture
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- Key points
- Most buy furniture to replace worn-out items
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- Figure 41: Reasons for buying/renting furniture, April 2012
- Men and women cite similar reasons for buying furniture
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- Figure 42: Reasons for buying/renting furniture by gender, April 2012
- Younger shoppers buy furniture when moving, and on sale
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- Figure 43: Reasons for buying/renting furniture, by age, April 2012
- Replacement furniture purchased by all household income groups
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- Figure 44: Reasons for buying/renting furniture, by household income, April 2012
Reasons for Choosing Furniture Retailers
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- Key points
- Price, quality, and selection most important when choosing furniture stores
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- Figure 45: Reasons for choosing furniture retailers, April 2012
- Women more selective compared to men when choosing retailers
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- Figure 46: Reasons for choosing furniture retailers, by gender, April 2012
- Older shoppers less selective about furniture retailers
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- Figure 47: Reasons for choosing furniture retailers, by age, April 2012
- Regardless of household income, price is important to all respondents
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- Figure 48: Reasons for choosing furniture retailers, by household income, April 2012
Attitudes Toward Shopping for, Buying, and Style of Furniture
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- Key points
- Most wait for sales to buy furniture, but will pay more for quality pieces
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- Figure 49: Attitudes toward shopping for, buying, and style of furniture, April 2012
- Women more likely to wait for sales, enjoy furniture shopping
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- Figure 50: Attitudes toward shopping for, buying, and style of furniture by gender, April 2012
- Most wait for sales; young adults enjoy shopping, seek functional items
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- Figure 51: Attitudes toward shopping for, buying, and style of furniture, by age, April 2012
- Across all household income groups, furniture buyers wait for sales
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- Figure 52: Attitudes toward shopping for, buying, and style of furniture, by household income, April 2012
Sources of Ideas/Inspiration for Furniture
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- Key points
- Retailers’ catalogs, websites offer inspiration
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- Figure 53: Sources for ideas/inspiration for furniture, April 2012
- Women more likely than men to seek inspiration for furniture
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- Figure 54: Sources for ideas/inspiration for furniture, by gender, April 2012
- Younger adults seek inspiration and are influenced from many sources
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- Figure 55: Sources for ideas/inspiration for furniture, by age, April 2012
What Retailers Should do to Encourage Furniture Shopping
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- Key points
- Free delivery, removal and donation of furniture appeal to most
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- Figure 56: What retailers should do to encourage furniture shopping, April 2012
- Women more likely than men to seek innovations in furniture shopping
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- Figure 57: What retailers should do to encourage furniture shopping, by gender, April 2012
- Free delivery/shipping will appeal to all ages
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- Figure 58: What retailers should do to encourage furniture shopping, by age, April 2012
- Highest earners seek free delivery of furniture
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- Figure 59: What retailers should do to encourage furniture shopping, by household income, April 2012
Attitudes Toward Online Furniture Shopping
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- Key points
- Furniture shoppers hesitant to buy online
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- Figure 60: Attitudes toward online furniture shopping, April 2012
- Women more likely to want to see/touch furniture, avoid shipping fees
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- Figure 61: Attitudes toward online furniture shopping, by gender, April 2012
- Those aged 65+ not likely to buy furniture online
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- Figure 62: Attitudes toward online furniture shopping, by age, April 2012
- Highest earners like to see/touch furniture before buying
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- Figure 63: Attitudes toward online furniture shopping, by household income, April 2012
Impact of Race/Hispanic Origin
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- Key points
- Hispanics more likely than non-Hispanics to buy furniture
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- Figure 64: Incidence of buying furniture, by race/Hispanic origin, April 2012
- Non-Hispanics spend more on furniture than Hispanics
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- Figure 65: Amount spent on furniture, by race/Hispanic origin, October 2010-November 2011
- Hispanics shop across a wide variety of channels for furniture
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- Figure 66: Store types shopped and furniture bought from (in store or online), by race/Hispanic origin, April 2012
- Whites buy to replace worn-out items, Hispanics buy to replace damaged goods
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- Figure 67: Reasons for buying/renting furniture, by race/Hispanic origin, April 2012
- Hispanics seek ability to buy all furniture needs at one store
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- Figure 68: Reasons for choosing furniture retailers, by race/Hispanic origin, April 2012
- Hispanics likely to shop online for furniture, keep up with latest styles
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- Figure 69: Attitudes toward furniture, by race/Hispanic origin, April 2012
- Hispanics more likely than non-Hispanics to get inspiration from catalogs
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- Figure 70: Sources for ideas/inspiration for furniture, by race/Hispanic origin, April 2012
- Hispanics interested in interactive tools to envision how items will look in their homes
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- Figure 71: What retailers should do to encourage furniture shopping, by race/Hispanic origin, April 2012
- Hispanics not likely to buy furniture online
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- Figure 72: Attitudes toward online furniture shopping, by race/Hispanic origin, April 2012
Cluster Analysis
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- Furnish for Function
- Demographics
- Characteristics
- Opportunity
- Indifferent Independents
- Demographics
- Characteristics
- Opportunity
- Style Seekers
- Demographics
- Characteristics
- Opportunity
- DIYers
- Demographics
- Characteristics
- Opportunity
- Efficient Enthusiasts
- Demographics
- Characteristics
- Opportunity
- Cluster characteristic tables
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- Figure 73: Cluster groups, April 2012
- Figure 74: Incidence of buying furniture, by cluster groups, April 2012
- Figure 75: Retailers shopped for furniture, by cluster groups, April 2012
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- Figure 76: Reasons for buying/renting furniture, by cluster groups, April 2012
- Figure 77: Reasons for choosing furniture retailers, by cluster groups, April 2012
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- Figure 78: Attitudes to shopping for, buying, and style of furniture, by cluster groups, April 2012
- Figure 79: Sources for ideas/inspiration for furniture, by cluster groups, April 2012
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- Figure 80: What retailers should do to encourage furniture shopping, by cluster groups, April 2012
- Figure 81: Attitudes toward online furniture shopping, by cluster groups, April 2012
- Cluster demographic tables
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- Figure 82: Cluster group demographics, part 1, April 2012
- Figure 83: Cluster group demographics, part 2, April 2012
- Figure 84: Cluster group demographics, part 3, April 2012
- Cluster methodology
Appendix—Other Useful Consumer Tables
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- Furniture purchases
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- Figure 85: Incidence of buying furniture, by marital and relationship status, April 2012
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- Figure 86: Incidence of buying furniture, by household size, April 2012
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- Figure 87: Incidence of buying furniture, by presence of children in household, April 2012
- Type of furniture purchased
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- Figure 88: Type of furniture purchased, by gender, October 2010-November 2011
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- Figure 89: Type of furniture purchased, by age, October 2010-November 2011
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- Figure 90: Type of furniture purchased, by household income, October 2010-November 2011
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- Figure 91: Type of furniture purchased, by household size, October 2010-November 2011
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- Figure 92: Type of furniture purchased, by presence of children, October 2010-November 2011
- Amount spent
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- Figure 93: Amount spent on furniture/furnishings, by household size, October 2010-November 2011
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- Figure 94: Amount spent on furniture/furnishings, by marital status, October 2010-November 2011
- Retailers shopped and where furniture was purchased
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- Figure 95: Store types shopped and furniture bought from (in store or online), by marital and relationship status, April 2012
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- Figure 96: Store types shopped and furniture bought from (in store or online), by household size, April 2012
- Retailers shopped but furniture was not purchased
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- Figure 97: Shopped here but did not purchase any items here (in store or online), by gender, April 2012
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- Figure 98: Shopped here but did not purchase any items here (in store or online), by age, April 2012
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- Figure 99: Shopped here but did not purchase any items here (in store or online), by household income, April 2012
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- Figure 100: Shopped here but did not purchase any items here (in store or online), by race/Hispanic origin, April 2012
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- Figure 101: Shopped here but did not purchase any items here (in store or online), by marital/relationship status, April 2012
- Retailers not shopped at for furniture
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- Figure 102: Wouldn't shop at this retailer for furniture, by gender, April 2012
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- Figure 103: Wouldn't shop at this retailer for furniture, by age, April 2012
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- Figure 104: Wouldn't shop at this retailer for furniture, by household income, April 2012
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- Figure 105: Wouldn't shop at this retailer for furniture, by race/Hispanic origin, April 2012
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- Figure 106: Wouldn't shop at this retailer for furniture, by marital/relationship status, April 2012
- Reasons for buying furniture
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- Figure 107: Reasons for buying/renting furniture, by marital/relationship status, April 2012
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- Figure 108: Reasons for buying/renting furniture, by household size, April 2012
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- Figure 109: Reasons for buying/renting furniture, by presence of children in household, April 2012
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- Figure 110: Reasons for buying/renting furniture, by education, April 2012
- Reasons for choosing furniture retailers
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- Figure 111: Reasons for choosing furniture retailers, by marital/relationship status, April 2012
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- Figure 112: Reasons for choosing furniture retailers, by household size, April 2012
- Attitudes toward furniture
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- Figure 113: Attitudes toward furniture, by marital/relationship status, April 2012
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- Figure 114: Attitudes toward furniture, by household size, April 2012
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- Figure 115: Attitudes toward furniture, by presence of children in household, April 2012
- Sources for ideas/inspiration for furniture
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- Figure 116: Sources for ideas/inspiration for furniture, by marital/relationship status, April 2012
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- Figure 117: Sources for ideas/inspiration for furniture, by household size, April 2012
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- Figure 118: Sources for ideas/inspiration for furniture, by presence of children in household, April 2012
- What retailers should do to encourage furniture shopping
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- Figure 119: What retailers should do to encourage furniture shopping, by marital/relationship status, April 2012
- Attitudes toward online furniture shopping
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- Figure 120: Attitudes toward online furniture shopping, by marital and relationship status, April 2012
Appendix—Trade Associations
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