A unique opportunity for furniture retailers to benefit from market conditions
With the Bank of Canada implementing a super-sized rate reduction of 50 bps this month, a lot of attention has been paid to how this will affect two key areas that impact furniture sales; real estate and retail sales.
The impact of interest rates on the retail industry
Consumers tend to delay purchases of larger ticket items, like furniture, during a higher rate environment. When rates are high, households must allocate a larger proportion of their disposable income towards servicing existing debt. Since larger items tend to be purchased on credit, this also translates into higher costs for the customer.
Deeper rate cuts and policy changes expected to drive house sales
Interest rates set by the central bank have a direct impact on the rates charged by mortgage lenders. When rates decrease, it tends to stimulate activity in the housing market. In addition, the federal government recently announced new mortgage policies to make home ownership more accessible, which will also increase demand for real estate.
This will impact the retail furniture industry as home sales have been shown to boost economic growth. In a recent study published by the National Association of Realtors, buyers of existing homes spent an average of $2,988 on furniture. This presents an attractive opportunity for furniture retailers to reach clients who are looking to update their furnishings as well as new homebuyers who are looking to purchase their first dining room table.
Now is a good time to revisit your marketing strategy
According to a report published by TD Economics, the new policy measures, combined with the existing and anticipated rate cuts, are expected to spur growth in the housing market by as early as the fourth quarter of this year, and into 2025. As both new and existing homeowners enter the market and look to update their furnishings, an attractive opportunity is presented for furniture retailers to grow their sales. This is an excellent time to revisit your marketing strategy to ensure that your brand is presented prominently in front of consumers who are interested in investing in new furniture.
Ad Ops House can help elevate your online presence. We specialize in getting your business seen—both through high-ranking, organic placements on Google via SEO and through targeted ads that top the search results. We craft impactful branding campaigns, using multimedia ads to boost your visibility on YouTube and position your brand prominently across key social media platforms.
Our team can also transform your website with a full redesign, or, if you’re working within a budget, offer tailored solutions like single-page add-ons optimized for conversions to showcase your product offerings effectively.
Unlike traditional advertising methods, our digital approach allows us to target audiences with precision, ensuring every advertising dollar is well-spent. This strategy maximizes your budget by reaching users most likely to engage with your products.
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