Wells Fargo: Retail Competition in Home Furnishings to Step Up This Spring
NEW YORK-Competition between retailers in the home furnishings category should intensify this spring, according to an analysis from Wells Fargo Equity Research.
According to a statement from the financial-services firm, several retailers will debut "significant new product lines" during this season, and promotions will continue. The analysis added that "category growth is quite healthy ... and could accelerate given expectations of mid- to high- single-digit growth in existing home sales during 2013 and 2014."
Wells Fargo's analysts cited Target and its new Threshold home offering; Pier 1 Imports, with 100 percent exclusive product, e-commerce and category expansion opportunities; and Williams-Sonoma, with 75 percent exclusive product and "accelerating product innovation" as retailers that can expect to perform well this spring. They also mentioned J.C. Penney, whose Jonathan Adler, Michael Graves and Conran home shops are "very impressive. It is difficult to assess, however, the potential impact of this product as we believe there is a mismatch between the product design/price and the intended customer."