Home Furnishings in Canada

PROSPECTS

Pre-furnished apartments threaten furniture growth, window coverings face new regulations

Increasing urbanisation may represent a threat to furniture sales, as many apartments now come pre-furnished. As a result, consumers may not want to spend a lot of money on a home in which they may not be resident for a long period.

Increased tariffs hit furniture manufacturers exporting to the US

Canada exports nearly 95% of its furniture to the US. The USMCA deal, and the increased tariffs, have impacted local manufacturers.

Interest rates result in many consumers deciding to stay put rather than move home

The home furnishings category has benefitted from an increase in home renovations in Canada. The real estate market, which once witnessed double-digit growth, saw a slowdown in 2018, with further corrections in 2019.

COMPETITIVE LANDSCAPE

Ikea increases online offer with click-and-collect service, launches furniture-building service

Ikea Ltd is still the clear leader of the home furnishings category in Canada, and in 2019 gained value share in an otherwise fragmented environment. The company increased its e-commerce capabilities, and rolled out a click-and-collect service, expanding its reach and strengthening its position in Canada.

Ikea launches furniture buy-back scheme, opens new distribution facilities

Ikea has also introduced a unique programme to buy back little-used furniture, called the Ikea Sell-Back Program, which aims to contribute to sustainability. As Ikea has clear strategies to target price-sensitive Canadians, it is expected to remain the leader in home furnishings.

Growth of e-commerce set to result in reduced number of bricks and mortar stores

Thanks to Amazon.ca and Wayfair.

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