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Five things to know from STORIS’ 2022 Trend Report

Five things to know from STORIS’ 2022 Trend Report

STORIS recently anonymously surveyed many of its own retailer clients to produce first-party home furnishings industry insights for its 2022 Trend Guide. 

Here are five findings you need to know.

  1. Consumer Habits. When asked that the biggest changes seen in customers since the pandemic are, 26% expanded category interest, 22% said buying via e-commerce, 16% virtual and store appointments, and 14% said less time spent in store. STORIS also noted that 43% of retailers cited e-commerce growth as their biggest opportunity in 2022.

    “Combined, these results show that while customers are less reliant on brick-and-mortar stores, they are shopping for furnishings,” the report says. “Therefore, in 2022 it will be important to review how your online experience is meeting the demand for expanded product categories and offering a convenient user experience. The time to optimize is now.
  2. Sustained Supply Chain Challenges

    As supply chain issues continue to disrupty the industry, 50% of retailers stated that these issues would be their greatest challenge in 2022. Another 21% said the related challenges of inflation and price increases would hit the hardest.

    “While tariffs on China were a catalyst to diversifying sourcing, the pandemic pushed alternative nations over the edge,” the report says. “While 28% of our surveyed retailers still primarily source from China, 40% have shifted to Vietnam. As we have seen the virus ebb and flow in different geographic areas, having diversified sources can be valuable to offset location-specific challenges.”
  3. Inflation and Rising Prices. Eighty-five percent of retailers surveyed will raise prices in 2022. Furniture retailers aren’t alone when it comes to inflation, which is good, because STORIS says that means the customer likely won’t be surprised when you raise your prices in 2022. 

    “Buying tools can help you identify price points your customers are responding to in the market” the report says. “In the end, margin matters. If customers are gravitating towards a certain price point, work backward to determine your target cost of goods & a feasible mark up to balance the needs of your business & consumers.”
  4. Employment Challenges. At 19%, the third most anticipated challenge of 2022 is attracting, hiring, and retaining talent in an employee-led labor market. 

    “While wages are important, flexibility and benefits are also driving employment decisions,” the report says. “Providing greater shift flexibility and opportunities to conduct some responsibilities remotely may be key. However, because that becomes a significant challenge in physical showrooms, the attractiveness of these roles may have to lean more on salary.”

    Providing career paths for retail and warehouse positions can support the retention of talent within your brand, and you should look at activities where labor expenses can be streamlined or automated to provide more opportunities for competitive benefits and wages for jobs requiring human resources.
  1. The Role of Stores. STORIS’ research found that 44% of retailers surveyed are planning to open new showrooms in 2022. And with 3/4 of customers spending over an hour in-store, browsing is back.

    While 26% see customers returning to stores as their greatest 2022 opportunity and 76% stated that their customers spend an hour or more in their stores.

    “The treasure hunting experience of shopping has rebounded after years of transaction-driven time in store,” the report says. “Merchandise curation and storytelling through product vignettes are roles of the showroom that reaffirm the social aspect of shopping.
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