Furniture Retailing in New Zealand - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: March 2023
ANZSIC G4211NZRevenue
$1.4bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
4,265
Businesses
855
Wages
$XXX.Xm
Furniture Retailing in New Zealand industry analysis
The operating environment for the Furniture Retailing industry has been challenging over the past few years, as rising competition – particularly from online-only retailers – has been affecting growth and performance. Furniture retailers tend to compete on the bases of price and product range. External competition comes from various other retailers that sell furniture as part of their operations, like department stores, second-hand marketplaces and auction websites. However, the COVID-19 outbreak had mixed effects on furniture retailers. Wage subsidies and moratoriums on rent increases improved some markets' financial circumstances; however, consumer sentiment remained low because of overall uncertainty within the economy. Work-from-home measures heightened demand for office furniture like desks and office chairs, since people needed home setups to carry out their daily activities. While revenue dropped immediately following the outbreak, it is anticipated to rise at an annualised 1.9% to $1.39 billion over the five years through 2023-24. This climb includes a lift of 3.3% in 2023-24, as recovering consumer sentiment encourages people to make more discretionary purchases.The cash rate is continuing to rise, which is elevating interest rates. This trend is starting to discourage discretionary spending, as cost of living pressures escalate and dampen consumers' financial confidence. Capital expenditure on residential buildings is on track to fall alongside dwelling consents issued, since tax deductions on mortgage interest are being phased out from 2023-24. Lower construction activity, particularly for apartments and townhouses, will dull spending on furniture, as fewer renovations and new houses means that consumers will not need as much furniture. Competition is also set to continue to intensify – cost of living pressures will encourage consumers to look to lower-cost alternatives like second-hand stores, department stores or online-only retailers to make purchases. However, the New Zealand dollar is on track to appreciate, which will dull purchase costs and make the imported products that retailers sell more affordable to acquire. These conflicting trends will cause profit margins to remain stable. Revenue is forecast to climb at an annualised 0.1% to $1.4 billion over the five years through 2028-29, as industry growth slows.
Trends and Insights
- Some consumers’ financial situations improved following the COVID-19 outbreak. Wage subsidies and moratoriums on raising rent prices encouraged discretionary spending.
- Remote working arrangements elevated demand for office furniture. More consumers have needed desks and office chairs to carry out their work obligations from home.
- Auckland accounts for a large share of New Zealand’s furniture retailers. Since it’s the most populated region, it tends to attract more businesses that want to establish a stable base of operations.
- Furniture retailers mainly compete on the basis of price. Consumers are the main market for furniture, and they tend to be very price-conscious and seek value for money.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 1.9 % over the past five years, to reach an estimated $1.4bn in 2023.
Trends and Insights
The COVID-19 outbreak dampened consumer sentiment
- Trends in household discretionary income and consumer sentiment tend to influence retail demand for furniture. The government implemented support measures to support households after the COVID-19 outbreak, including wage subsidy payments and moratoriums on rent increases. In addition to mortgage repayment holidays, these factors elevated incomes and cut necessary expenditures.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Lower demand is on track to slow revenue growth
- When new homes or apartments are built or renovated, demand rises for furniture for these buildings. However, capital expenditure on residential buildings is set to drop.
Biggest companies in the Furniture Retailing in New Zealand
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Harvey Norman | 377.6 | |
Harvey Norman | 280.4 | |
Big Save | 123.0 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Lounge and dining room furniture, Bedroom furniture and Blinds and awnings. Lounge and dining room furniture is the largest segment of the Furniture Retailing in New Zealand.
Trends and Insights
People are spending more time at home and investing in lounge and dining room furniture
- Lounge and dining room furniture includes arm chairs, lounges, coffee tables, display cabinets, entertainment units, TV stands, dining tables, chairs and buffets.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Department Stores in New Zealand
Complementors
- Furniture and Floor Covering Wholesaling in New Zealand
- Manchester Retailing in New Zealand
- Online Shopping in New Zealand
International industries
- Online Household Furniture Sales in the US
- Bed & Mattress Stores in the US
- Furniture Stores in Canada
- Furniture Retailing in Australia
- Furniture, Lighting & Homeware Retailers in the UK
Table of Contents
About this industry
Industry definition
Furniture retailers mainly sell household furniture, blinds, awnings and mattresses through brick-and-mortar stores. The industry includes retailers that sell antique reproduction furniture, but excludes those that sell second-hand or antique furniture. Curtain retailing, and manufacturing and installing blinds or awnings are not included in the industry. Online-only retailers and auction websites are also excluded.
What's included in this industry?
Bedroom furnitureLounge and dining room furnitureBlinds and awningsOutdoor and garden furnitureDesksFiling cabinetsBlanket boxesDesk chairsCoat standsAntique reproduction furnitureCompanies
Harvey NormanHarvey NormanBig SavePurchase this report to view all 4 major companies in this industry.
Related Terms
POINT-OF-SALE (POS)ONLINE-ONLY RETAILERSRADIOFREQUENCY IDENTIFICATION (RFID)Industry Code
ANZSIC 4211 - Furniture Retailing in New Zealand
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Some consumers’ financial situations improved following the COVID-19 outbreak. Wage subsidies and moratoriums on raising rent prices encouraged discretionary spending.
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Remote working arrangements elevated demand for office furniture. More consumers have needed desks and office chairs to carry out their work obligations from home.
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Auckland accounts for a large share of New Zealand’s furniture retailers. Since it’s the most populated region, it tends to attract more businesses that want to establish a s...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Furniture retailers mainly compete on the basis of price. Consumers are the main market for furniture, and they tend to be very price-conscious and seek value for money.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Harvey Norman is the largest furniture retailer in the industry. The company has been expanding its online operations to cater for consumers’ increasing tendency to shop for ...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Harvey Norman's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Harvey Norman's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Big Save's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for Harvey Norman, and factors influencing its performance in the industry
- Description and key data for Harvey Norman, and factors influencing its performance in the industry
- Description and key data for Big Save, and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Regulations surrounding fair trading conditions apply to furniture retailers. For example, the Fair Trading Act 1986 ensures that consumers are protected from misleading or d...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profit margins have been on the rise over the past few years. Even though purchase costs have hiked up, greater demand from some segments and sourcing lower-priced inputs has...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in New Zealand include:
- Statistics New Zealand
- New Zealand Company Register
- Ministry of Business, Innovation & Employment
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Furniture Retailing industry in New Zealand in 2024?
The market size of the Furniture Retailing industry in New Zealand is $1.4bn in 2024.
How many businesses are there in the Furniture Retailing in New Zealand industry in 2023?
There are 855 businesses in the Furniture Retailing industry in New Zealand, which has grown at a CAGR of 5.2 % between 2018 and 2023.
Has the Furniture Retailing industry in New Zealand grown or declined over the past 5 years?
The market size of the Furniture Retailing industry in New Zealand has been growing at a CAGR of 1.9 % between 2018 and 2023.
What is the forecast growth of the Furniture Retailing industry in New Zealand over the next 5 years?
Over the next five years, the Furniture Retailing industry in New Zealand is expected to grow.
What are the biggest companies in the Furniture Retailing market in New Zealand?
The biggest companies operating in the Furniture Retailing market in New Zealand are Harvey Norman, Harvey Norman and Big Save
What does the Furniture Retailing in New Zealand include?
Bedroom furniture and Lounge and dining room furniture are part of the Furniture Retailing industry.
Which companies have the highest market share in the Furniture Retailing in New Zealand?
The company holding the most market share in New Zealand is Harvey Norman.
How competitive is the Furniture Retailing industry in New Zealand?
The level of competition is moderate and increasing in the Furniture Retailing industry in New Zealand.
