Holiday Sales, Market Shifts & North Carolina's Manufacturing Shakeup

Furniture Industry News – December 4th, 2023 Highlights: Holiday Shopping Surprises: Nearly 197 million consumers shopped during Thanksgiving weekend, exceeding projections despite a slight drop from last year. Holiday spending is forecasted to hit $979–$989 billion, marking a 2.5–3.5% increase over 2022. Mixed Furniture Order Trends: While September orders declined 9% year-over-year, there’s a 5% month-over-month increase, signaling potential stabilization. Shipments are down, but backlogs are slightly improving. North Carolina Manufacturing Closures: MasterBrand is closing two facilities in 2025, impacting 274 workers. Support measures include severance pay, benefit assistance, and relocation opportunities. Sale-Leaseback Strategies on the Rise: Companies are using this financial approach to access capital, improve balance sheets, and maintain operational control amid economic challenges. In-Depth Updates: 1. Holiday Shopping Outpaces Projections Record-Breaking Stats: 197 million shoppers surpassed the 183.4 million forecast. Black Friday Dominance: 81.7 million in-store and 87.3 million online shoppers led spending, with average per-person spending reaching $235. Industry Insight: A robust holiday season reflects consumer resilience despite economic pressures. 2. Furniture Order Trends Declines & Stabilization: Orders fell 9% year-over-year in September, continuing a downtrend since May. Month-over-month, orders rose 5%, indicating gradual improvement. Economic Indicators: Consumer confidence and existing-home sales are gaining traction. Federal Reserve's recent interest rate cuts could spur further industry recovery. 3. North Carolina Manufacturing Closures MasterBrand's Announcement: Closure of Dura Supreme (Statesville) and Norcraft (Liberty) facilities in 2025. 74 employees affected in Statesville (closing January 20th). 200 workers impacted in Liberty (closing May 22nd). Support Measures: Transition assistance, severance pay, and relocation options to Kinston facility. Closures underscore shifts in the cabinet manufacturing sector and local economies. 4. Sale-Leaseback Transactions Gaining Momentum How It Works: Companies sell their facilities to investors and lease them back, unlocking real estate value without losing operational control. Key Benefits: Immediate access to full property value. Improved balance sheets and reduced debt. Fully tax-deductible lease payments. Example Impact: A $20M facility sold for $30M provides substantial capital while preserving operational continuity.