Byline: Andrea Lillo
MIRROR, MIRROR ON THE WALL, WHICH home accessories category increased most of all? According to HFN’s latest survey of the wall decor retail sales, the answer is mirrors, actually, and alternative wall decor.
Overall, the category-which includes framed art, framed mirrors and alternative wall decor-experienced a slight decline over the past year, dipping 1.2 percent to $2.3 billion. Both mirrors and alternative wall decor grew, and retailers and manufacturers both mention the growth potential of these two areas. Framed art, however, slipped as a category, though it still holds the largest share of the pie.
Mass merchants and clubs overall gained market share, generally at the expense of department stores, furniture stores, and chains and specialty stores. This channel jumped five percentage points to 37 percent share overall. In fact, with some exceptions, mass merchants and clubs were the only group that grew within each of the three wall decor categories, while the others slipped or stayed the same.
Framed art, the largest portion, with more than 45 percent of the pie at $1.1 billion, fell by 5.5 percentage points. But mass merchants and clubs, along with furniture stores and chains, grew in this area, by four percentage points to 35 percent, and by three percentage points to 23 percent, respectively. Department stores remained flat at 7 percent, while specialty stores fell six percentage points to 24 percent.
Mirrors have been cited by both retailers and manufacturers as having great growth potential, and in the survey they placed second with about 35 percent of the category, climbing 1.3 percent to $804.4 million. Again, mass merchants and clubs held the largest portion as well and posted the only increase in the group, up eight percentage points to 48 percent. Department stores fell three percentage points to 10 percent, furniture stores and chains one percentage point to 11 percent, and specialty stores one percentage point to 29 percent.
Though the smallest category at about 19.5 percent, alternative wall decor is picking up speed, having grown 5 percent over the year to reach $453.2 million. Here, specialty stores held the number-one position with 42 percent of the category, though that had slipped one percentage point from the previous year. Mass merchants and clubs were behind at 23 percent, with a gain of three percentage points, followed by furniture stores and chains, which fell one percentage point to 19 percent. Department stores increased one percentage point to 11 percent.
Though the mass merchants and clubs are dominant in two of the three wall decor categories and continue to grow, some manufacturers said it doesn’t affect them because that’s not their target customer. Dallas-based Arteriors Home’s products do not work well as an inexpensive knock-off “as most have hand-applied finishes, unique materials and other attributes that a discerning consumer can distinguish and feel good about buying,” said Mark Moussa, president of the company.
Mac Cooper, president and chief executive officer of Rocky Mount, Va.-based Uttermost, added that retailers can differentiate themselves from mass merchants as those retailers tend to buy more promotional or basic product. “The retailers who are really moving wall decor are the ones who focus on this category as a profit center rather than just using wall decor to make their furniture look good.”
Fort Worth, Texas-based Pier 1 Imports is one of those. During its analyst conference call in September, Marvin J. Girouard, outgoing chairman and CEO, said overall the wall decor category was robust, pointing out that “we’re really strong with mirrors and unusual items. Wall decor is a great growth potential for us,” though he also noted that it’s been tough since Target debuted its Global Bazaar two years ago.
So though the wall category works for some, it’s also in flux. “Framed art used to be the only thing on the wall,” said John Scott, president of Sterling Industries, Norcross, Ga. Now people are looking for “added value.” Mirrors, for example, need to be more than mirrors but also decorative accents with a mirror included somewhere. For Scott, mirrors have strong growth potential, at about 15 to 18 percent. Wall decor is challenging, however, in regard to awkward sizes and glass that breaks during shipping.
Uttermost’s Cooper agrees, though he also sees growth in the single digits for this year. “The most challenging segment is framed art under glass. Three dimensional art and alternative art are where the growth is at the expense of traditional framed art under glass,” he said. Alternative art is “just far more interesting, more unique, more fresh and has a high perceived value.” Uttermost’s mirror business has enjoyed years of rapid growth, but became tougher over the past year. Oversized mirrors have become a big part of business, but have leveled off for the moment.
The wall decor business continues to do well for Arteriors Home, said Moussa, driven by a product development focus on wall art introductions and also the addition of wall sconces. “Mirrors are particularly strong, and buyers tell us that they are a great option for consumers who are looking to decorate their walls and do not have access to fine art.” He also sees that consumers are becoming more interested in buying “green” eco-friendly products, and that this trend will get stronger, as well as make an impact on how he sources and merchandises product.
Alternative wall decor has been a “core anchor” for years at Trumball, Conn.-based Interlude, says Randy Bourne, executive vice president, brand development. Though the company started out with metal wall pieces, “now copied out there as evidence of its tremendous success,” it now includes anything from traditional pieces to tribal paddles, vintage skis or urban artifacts. Mirrors are another good area for them, as people now like to group mirrors together to add light to a dark room, for example.
Total Wall Decor
Channels of Distribution
Other: 6%
Department store: 10%
Mass merchants & club: 37%
Furniture stores & chains: 18%
Specialty stores: 29%
Retail Sales (million) 2005: $2,308.30
% change -1.2%
Other: 8%
Department stores: 1%
Mass merchants & clubs: 32%
Furniture stores & chains: 17%
Specialty stores: 23%
Retail Sales (million) 2004: $2,337.30
Framed Mirrors
Channels of Distribution
Other: 5%
Department stores: 7%
Mass merchants & clubs: 48%
Furniture stores & chains: 11%
Specialty stores: 29%
Retail Sales (in millions) 2005: $804.43
% change 1.3%
Other: 8%
Department stores: 10%
Mass merchants & clubs: 40%
Furniture stores & chains: 12%
Specialty stores: 30%
Retail Sales (in millions) 2004 $793.85
Framed Art
Channels of Distribution
Other: 6%
Department stores: 12%
Mass merchants & clubs: 35%
Furniture stores & chains: 23%
Specialty stores: 24%
Retail Sales (in millions) 2005: $1,050.73
% change: -5.5%
Other: 7%
Department stores: 12%
Mass merchants & clubs: 31%
Furniture stores & chains: 20%
Specialty stores: 30%
Retail Sales (in millions) 2004: $1,111.88
Alternative Wall Decor
Channels of Distribution
Other: 5%
Department stores: 11%
Mass merchants & clubs: 23%
Furniture stores & chains: 19%
Specialty stores: 42%
Retail Sales (in millions) 2005: $453.18
% change: 5%
Other: 7%
Department store: 10%
Mass merchants & clubs: 20%
Furniture stores & chains: 20%
Specialty stores: 43%
Retail Sales (in millions) 2004: $431.6
Caption(s): Global Views’ artisian Media Cabinet is the focal point, surrounded by the silver-leaf Artisian mirror, nickel candle-holder and burnished blonde grande vase. / Uttermost Feats I and II / Global Views sconce / Arteriors Astro mirror / Elements Sunburst mirror / Vintage Verandah Verona wall hanging / Interlude deer heads
COPYRIGHT 2006 Fairchild Publications, Inc.
COPYRIGHT 2006 Gale Group