• by Sarah Mahoney , Yesterday

The slumping housing market is still having its way with the furniture business, but La-Z-Boy seems to be outsmarting the prolonged downturn. While the retailer's overall sales were flat in the fourth quarter at $570 million, sales in its retail segment increased 11%. That came from an aggressive retail move: adding four new stores. With 230 of the fleet now company-owned -- about 60% of the store total -- the company was able to deliver a sharp jump in profits. Net income climbed more than 120%, to $33.3 million in the quarter, compared to $14.9 million in the comparable period of the prior year.

For the full year, sales rose 1% to $2.1 billion versus the prior year. The company added 15 new stores and acquired 15 independent La-Z-Boy stores. Both represent the company's most aggressive expansion in its nearly 100-year history.

"We continue to drive our own momentum and are playing offense, led by our retail business expansion through new stores, acquisition of independent stores, and delighting consumers across our network," said Melinda D. Whittington, board chair, president and CEO of the Monroe, Michigan-based company, in the announcement.

She pointed to transformation efforts in the distribution and home delivery network, as well as the streamlining of two additional smaller manufacturing plants into the company's larger U.S. plant network. She said those moves are helping drive sustainable sales gains, "even against the macroeconomic backdrop."

That optimism has limits, though. The furniture industry reports that this year kicked off with declining shipments, down 7% year over year, per Furniture Today.

But industry research seems to confirm that La-Z-Boy's investment in store expansion is a smart one. A recent survey from the Home Furnishings Association, which included 9,000 consumers, reveals that customers increasingly find furniture inspiration online, and the need for hands-on interaction is growing.

"Digital innovation and lifestyle shifts have catalyzed new trends at a faster pace in the past five years than in the previous 20," the report says. "Retailers are now pressed to keep pace with consumers who are tech-savvy, information-driven, and expect seamless digital-to-physical journeys."

And while the trend includes AI and 3D visualization, younger consumers are more likely to use a hybrid shopping experience, researching online and then purchasing in person.

"They only visit physical stores when they are ready to validate their choices, focusing their in-person interactions on confirmation and tactile experiences," according to the survey.