Q2 US home furnishing market trends, what impact will the bankruptcy of 3B home furnishing giants have?

It is learned that recently, YipitData released relevant data on the U.S. home furnishings market in the second quarter of 2023, analyzing the dynamics of the U.S. home furnishings market and changes in the competitive landscape in the second quarter, including the whereabouts of consumers after the bankruptcy of BedBath & Beyond.

In 2022, the sales of the US home furnishings market showed negative year-on-year growth in almost every quarter, with a decline of 6%-8%. In the second quarter of 2023, the GMV of US home furnishings fell by 11% year-on-year, and the overall demand was relatively weak.

Changes in market share of home furnishing retailers in the second quarter

Data shows that in the second quarter, Wayfair continued to occupy the largest share of the US home furnishings market, with its market share increasing by 2.5% year-on-year to 17.8%. The second largest market share is HomeGoods, whose market share increased by 1.6% year-on-year to 11.5%. In this quarter, Laz-Z-Boy's market share increased by 0.8%, the same growth rate as IKEA, which ranked third.

At the same time, a number of home furnishing retailers are facing a decline in market share. The figure below shows that the GMV of the top 30 retailers in 2023 will be lower than that in 2022.

Bed Bath & Beyond (BBBY) has seen its market share loss accelerate since filing for bankruptcy on April 23. In the second quarter, BBBY's GMV fell 55.9% year-over-year, and its market share fell 3% year-over-year.

Other retailers that saw a decline in market share included Restoration Hardware, which saw a 0.9% year-over-year decline in market share and a 27.1% year-over-year decline in GMV. Ashley Furniture was the third largest decliner, with its market share falling 0.6% year-over-year in the second quarter.

Where did consumers go after BedBath&Beyond went bankrupt?

In June this year, Overstock announced the acquisition of BBBY brand assets and changed the website domain name and brand name to BedBath&Beyond. In 2019, BBBY's sales exceeded Wayfair. If Overstock can restore the brand's potential, it will become a strong competitor to Wayfair in the future.

Data shows that after BBBY went bankrupt, its consumers shifted more spending to Wayfair and HomeGoods. In 2019, BBBY accounted for one-third of U.S. home furnishings consumer spending, but in 2020, Wayfair's spending share exceeded BBBY.

Now, with BBBY’s bankruptcy, Wayfair’s share of spending has increased further. Wayfair’s share of spending is now 27%, while BBBY’s is 10%. HomeGoods has also benefited from BBBY’s bankruptcy, with its share of spending increasing by 6% over the past five years to 22% today.

Currently, Overstock only accounts for 4.5% of spending share, but with the acquisition of BBBY's brand assets, it has the opportunity to absorb more of BBBY's consumers and regain market share lost during the epidemic.

Data shows that in the past five years, more and more BBBY consumers have turned to Wayfair for shopping. Yipitdata also counted the top ten categories that BBBY consumers bought on Wayfair.

The chart above shows that BBBY consumers spent more on beds, sofas, rugs, storage, and curtains on Wayfair than in previous years. Overstock's efforts in these categories are more conducive to attracting BBBY's previous consumers, especially storage and curtains, which are the categories where BBBY led Wayfair in 2019.

Editor✎ Ashley/

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