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Why furniture prices are falling amid ongoing inflation

  • January 20, 2024

After skyrocketing price increases over the past few years, furniture retailers are seeing a pandemic recovery slump amid ongoing inflation. Lazzoni Modern Furniture analyzed Bureau of Labor Statistics data to see what’s behind the fall.

According to the Department of Labor, market inflation rose to 5.3% in the 12 months leading up to August 2021—it was a huge leap, considering inflation spikes had averaged around 1.7% over the prior 10 years. The pandemic wrought massive shipping and supply issues, creating supply chain disruptions. The expensive costs that manufacturers and sellers had to cover due to these supply chain disruptions—combined with the profit loss they needed to make up for—led to increased prices of goods and services, fueling high inflation.

A McKinsey & Company survey found that, by the end of 2021, most companies experiencing supply chain challenges had increased their inventories, meaning businesses spent more to stock up.

Economic challenges resulting from the pandemic heavily impacted furniture prices. Since 2019, furniture prices have seen massive changes: Prices jumped significantly in the 12 months ending October 2021 as the world grappled with the COVID-19 outbreak (12%) and, by August 2022, had outpaced the growth rate of market inflation, according to an analysis of year-to-year BLS data.

However, as the U.S. economy entered recovery in 2023, consumer spending slowed while housing prices soared, which caused a ripple effect on the housing market. Subsequently, furniture retailers experienced drops in revenue, leading companies to slash product prices to make sales.

Even as the pandemic-induced inflation has cooled, sticker shock often plagues consumers who still remember pre-pandemic prices. That’s because prices tend to be “downwardly rigid,” Mike Konczal, Roosevelt Institute’s director of macroeconomic analysis, explained to Vox, meaning companies that raise their prices don’t usually lower them again.

Lazzoni Modern Furniture
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BenchMade Modern Crowd Pleaser Bed review

  • December 17, 2023

Ordering a bed on the Internet is no easy task. An investment in your comfort, sleep quality and overall well-being, it’s a process that demands time, dedication and thorough research. So when I decided to purchase the nearly $3,000 BenchMade Modern Crowd Pleaser Bed, it was with the solemn knowledge that this splurge was going to be life-changing.

As the director of social here at CNN Underscored, a bed is not just where I sleep but a workspace and a hub for much of my daily activity. Whether I’m cocooned in blankets scrolling through TikTok or perched on a pile of pillows with a laptop, I take my bed extremely seriously.

I chose the BenchMade Modern Crowd Pleaser Bed because in addition to being fully customizable and handcrafted in the US, the company is also known for its short delivery time, which in the days of post-Covid, supply-chain woes, is worth a consideration. Here’s everything you need to know about this buzzy, design-forward bed, even though it won’t come cheap.

The BenchMade Modern Crowd Pleaser Bed may be a splurge, but its solid craftsmanship, full customization and quick delivery time is well worth the cost.

Having previously tested a sofa from BenchMade Modern, I was well acquainted with the seemingly unlimited customizable design options and the no-hassle delivery and assembly process — both invaluable aspects when shopping for such a large piece of furniture.

The Crowd Pleaser Bed goes beyond a mere bed frame. And for the price, this makes perfect sense. Seamlessly blending functionality with a solid sense of sturdiness, it is handcrafted with double-strength slats, so it feels solid and unmovable, no matter how many people, kids and even pets pile on to it. The high-quality bouclé fabric is soft to the touch and the bed’s slightly rounded

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At Home Drops Thousands of Prices Storewide

  • April 18, 2023

Supply Chain Efficiencies Driving Price Improvements to Pass Savings to Customers

DALLAS, March 22, 2023–(BUSINESS WIRE)–Today, At Home is announcing thousands of permanent price drops on items like furniture, rugs, and décor. After supply chain costs rose over $300 million between 2021 and 2022, the company has found ways to improve their freight costs while maintaining their status as the largest home and holiday décor superstore at the lowest prices.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230322005003/en/

Passing savings on to you (Graphic: Business Wire)

“I am excited to announce we’re making it even more affordable to continue to refresh your home – both inside and out. Starting today, we have permanently lowered prices on thousands of items across our store and online. These price drops are possible due to the relentless efforts of our teams to find cost savings throughout our supply chain,” says Chairman and CEO Lee Bird. “Last year we had extraordinary cost increases in our supply chain, which led to us raising prices – which we were reluctant to do. We committed to ourselves that we would drop prices as soon as we could. We can now, and we just have.”

“As we see inflation continue to impact our customer from the gas pump to the grocery store, it is more important than ever we pass our savings to the customer. Passing on these supply chain cost savings will provide customers more purchasing power for the home items they desire,” says Chad Stauffer, President and Chief Merchandising and Product Officer. “Great value is important to our customer and critical to ensuring the entire economy stays healthy by enabling more customers to buy. We stay committed to décor for all, all for less. We will continue to evaluate our

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MaxLinear Brings Fully Converged Access Platform and Unprecedented Scalability to Home Gateway Design

  • October 18, 2022
  • First Single-chip SoCs Deliver Unparalleled Performance and Power while Reducing Total Cost of Ownership.

  • Targets Fiber-to-the-Home, Fixed Wireless Access, DOCSIS and Ethernet Gateways and Modems with Single Solution.

CARLSBAD, Calif., September 08, 2022–(BUSINESS WIRE)–MaxLinear, Inc. (NASDAQ: MXL) today announced the immediate availability of the first three products in its newest generation of AnyWAN™ broadband SoCs. The company will showcase these products at IBC 2022 in Amsterdam, September 9 – 12. Hall 8 – Stand 8.A53.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220908005447/en/

AnyWAN Broadband SoCs bring fully converged access platform with unprecedented scalability to home gateway design. (Graphic: Business Wire)

The MaxLinear AnyWAN MxL25641, URX850, and URX851 deliver the highest level of silicon integration to enable power- and cost-efficient high-performance home gateways and routers and bring the scalability that supports all high-speed data access and in-home connectivity technologies and software platforms:

Any WAN

Any LAN

Any Software

 

  • Fiber: GPON, XGS-PON, 10G EPON, Active Ethernet

  • Copper: xDSL, G. Fast

  • Cable: DOCSIS

  • Wireless: 5G FWA

  • Ethernet 2.5G and 10G

 

 

“To be successful in increasingly competitive broadband markets, service providers will need to streamline their home routers and gateways to ensure quick subscriber-turn-up and minimize supply chain impacts,” said Jeff Heynen, VP, Broadband Access and Home Networking at Dell ‘Oro. “Relying on a platform that supports multiple access technologies and in-home software frameworks will be critical to growing broadband subscribers and ensuring high quality of experience.”

Original Equipment Manufacturers (OEM) and Original Design Manufacturers (ODM) now have an ultra-scalable architecture to quickly provide cable, telco and fixed wireless service providers with a versatile solution for home routers and gateways. AnyWAN shortens product development time, lowers the cost of ownership, and allows the design of multiple high-speed data access gateway products around a common software framework,

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How appliance, furniture sellers can weather inflation

  • July 26, 2022

As retail sales slow from pandemic highs amid rising inflation, fuel prices and continued supply chain congestion, Deliveright co-founder and CEO Doug Ladden still sees opportunity for sellers of heavy goods such as furniture and appliances.

“What we’ve been seeing is volume is lighter than it was six months ago. I don’t think that is surprising,” Ladden told Modern Shipper. “Within e-commerce we’ve seen some retailers go out of business, we’ve seen some retailers slow down and we’ve seen some retailers grow steadily and grow market share.”

Ladden said an analysis of Deliveright’s top 10 customers showed most are still growing.

“They are adapting to this market,” he said. “There are other companies where it just seems like they haven’t figured out the secret sauce.”

Deliveright provides last-mile logistics technology for heavy goods, with a primary focus at this point on furniture. Its Grasshopper technology integrates with both warehouse management systems and transportation management systems. The solution is cloud-based and focuses on capacity optimization, allowing brands and delivery partners to maximize space inside vehicles.

Warning signs

The Commerce Department said overall retail sales rose in June 1%, but that is not adjusted for inflation. The sales volumes likely declined in June. Furniture and home furnishing stores posted a 1.4% increase in June over May and were up 4.6% over June 2021. On a six-month basis, the category is up 2.9% over the first six months of 2021, the Commerce Department said in its latest report.

In Deliveright’s core demographic, though, the situation could get worse. In its May housing market report, the Commerce Department said new home sales rose 10.7 percentage points over April, which saw the market drop 16.6% on a month-over-month basis. It was the lowest sales level since April 2020. Mark Zandi, chief economist at

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Canada’s home renovation boom under pressure amid soaring costs, rising rates

  • June 29, 2022

Hillary and Andrew Strack-Cheng with their kids Leland and Juniper in their home on June 22.Cole Burston/The Globe and Mail

Home renovations can be unpredictable and anxiety-laden at the best of times. But soaring costs, rising interest rates, cooling home prices and uncertainty about Canada’s economic outlook are increasing the financial risks associated with a major property uplift, some real estate experts warn.

Homeowners with large mortgage balances should “be careful with renovations right now,” said Nasma Ali, broker and founder of One Group Toronto Real Estate.

On top of sky-high materials and labour expenses driven by supply chain snarls and worker shortages, another squeeze on some home renovators’ budgets is coming from rising borrowing costs. Home equity lines of credit (HELOCs), which homeowners often rely upon to finance major improvements, generally come with variable interest rates, which have been climbing as the Bank of Canada has raised its benchmark rate to help fight inflation.

Those changing real estate and economic trends have caught some Canadians by surprise, mid-reno.

In Toronto’s east end, Hillary Strack-Cheng and her husband embarked on a sweeping home makeover September. They wanted to add two bedrooms and a bathroom to their small two-storey home to make room for their growing family. The couple had decided to renovate after calculating that a home extension would cost them less than selling the house and buying a bigger property in what was then a red-hot market.

But some nine months later, the project, which was temporarily derailed by a dispute with a contractor, is continuing. Delays and unexpected costs forced the couple to refinance their mortgage, which has a variable rate, and max out their HELOC.

While the family expects to move back home in August, Ms. Strack-Cheng said rising interest rates are adding a layer

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Average Cost of a Home Renovation (2022)

  • June 17, 2022
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Home renovations are more popular than ever, as people are spending more time at home and thinking about how to make their living spaces work for them.

The price tag for a typical home remodel can be in the tens of thousands of dollars, but rising home values have offered homeowners more opportunities to afford those costs. According to mortgage technology and data provider Black Knight, the average homeowner gained $48,000 in tappable equity in 2021, a 35% increase from 2020. That could be helping to drive the popularity of renovations, as homeowners often draw on home equity loans or lines of credit (HELOC) to finance renovation projects. 

While homeowners have more equity to help pay for the work, costs have also gone up, driven by increased labor costs and supply chain issues affecting building materials.

Whether you’re using a home equity loan, home renovation loan, or your own savings to update your house, it’s important to estimate costs upfront before you dive in. 

How Much Does It Cost to Renovate a House?

Home renovations can involve anything from repainting kitchen cabinets to refinishing hardwood floors to replacing old windows with new ones. Even small changes, such as painting a room or replacing light fixtures, can make a big difference to the look and feel of a room. 

While some homeowners remodel for their own aesthetic enjoyment, others choose to renovate to increase the resale value of their home. Renovating bathrooms and kitchens tend to have the best return on investment, says Allie Weiss

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