High-End Furniture Rentals Could Become a $1 Billion Business

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As any futon-browsing university pupil understands, furniture is expensive. It is no ponder then that lower-income individuals have extensive rented dwelling furnishings fairly than getting them outright.

Nonetheless Jefferies argues that in the age of subscription providers, this craze is about to go upmarket, generating a billion dollar chance.

Analyst Jonathan Matuszewski says that spending on furniture subscriptions on immediate-to-consumer platforms will strategy $1 billion in 5 several years, up from some $150 million nowadays. “We are at the commencing of a revolution in how individuals furnish their residences,” he states, adding that “access in excess of extra will be a mega-theme in the yrs in advance.”

He notes that about two-thirds of 1,000 customers surveyed by his agency have been intrigued in the strategy, as men and women transfer commonly or want to examination designs and models prior to acquiring.

Some companies are presently experimenting with the notion, which has formerly been the domain of far more decreased-finish retailers like

Rent-A-Middle

(RCII) and

Aaron’s

(AAN).

Williams-Sonoma
’s
(WSM) West Elm and Pottery Barn are partnered with

Hire The Runway

(Lease) and Feather, and Crate & Barrel and CB2 use Fernish.

Matuszewski argues that “investors must give administration groups ‘high marks’ for this technique, as it builds loyalty with buyers prior to 1st-time homebuying age.” Opportunity subscribers gave

Williams-Sonoma
’s
models high marks, which he thinks could translate to rental revenue of more than $300 million for the company in five decades.

Matuszewski acknowledges it could originally be a threat to marketplaces like

Wayfair

(W), but argues that organization finally “could leverage pre-existing infrastructure to enter furniture rental. The business-to-consumer prospect is most clear, but rental could also bolster

Wayfair
’s
B2B enterprise.”

Still, he taken care of Hold scores on both equally Williams-Sonoma and Wayfair.

Produce to Teresa Rivas at [email protected]