France faces plummeting home equipment sales amid economic downturn
- In 2024, the French home equipment market saw significant sales declines in various categories due to an unfavorable economic climate.
- The multifunctionality of small appliances, particularly air fryers which saw a 140% increase in sales, has not been enough to counteract the overall downturn in large household furnishings.
- These trends indicate a challenging future for the home furnishings sector as consumer budgets tighten in response to persistent economic pressures.
In 2024, France experienced a drastic decline in sales of home furnishings and appliances, attributed to various economic factors. The market faced challenges following high sales during the Covid-19 crisis and lockdowns, which created a false sense of stability. The economic situation worsened due to factors like halted real estate transactions, which typically boost home equipment sales. As consumers tightened their budgets and adopted a wait-and-see approach, sales of essential home items such as refrigerators and ovens greatly declined. This downward trend was particularly devastating for the furniture sector, wherein value dropped by 5.1%, with some categories experiencing even steeper declines. The furniture sector reported specific downturns, including 2.1% for bedding, 4% for upholstered seating, and upwards of 7% for bathroom furniture, all reflecting the ongoing struggles within the housing market. While air fryers stand out as an exception, enjoying a remarkable 140% increase in sales, this surge is not enough to offset overall market decline. The total number of air fryers sold exceeded 2.6 million units. This trend underscores a shift in consumer behavior, where people are increasingly drawn towards small appliances that promise convenience and efficiency, even as larger sectors like furniture experience crises. Despite the success in certain small appliance sales, industry experts remain concerned about the future of home furnishing, as budget constraints continue to shape consumer spending. As the year progresses, uncertainty looms over how these dynamics will affect both consumers and suppliers in the furniture and electrical appliance market. Continued downturn in real estate activities, along with geopolitical tensions, may prolong consumer hesitancy, affecting the overall trajectory of the market. The situation highlights the fragility of consumer confidence amid rising economic pressures, likely leading to a challenging year for suppliers who depend heavily on new housing developments for sales.