January Furniture Sales Helped by Promotional Financing

Consumers’ use of retail promotional financing for in-store purchases of furniture rose in January.

The number of applicants for in-store furniture financing programs rose by 8% compared to December and 10% year-over year, Versatile Credit said in a press release.

January also saw the approved financing total increase 9.6% over the previous month and 26% above January 2022, the firm said in the release.

“Consumers are becoming more conscious and savvy about their spending habits, seeking out promotional financing and low-interest offers to help them budget in an uncertain economy,” Versatile Credit CEO Ed O’Donnell said in the release.

U.S. economic activity rebounded sharply in January as consumers scooped up deals on clothes, TVs and refrigerators, according to the Census Bureau’s reading of retail sales.

The bureau found that retail sales started the new year with a 3% gain after having seen declines of 1% and 1.1% in November and December, respectively.

On an annualized basis, the report said that sales at retailers and restaurants — which are not adjusted for inflation — were up 6.4% from January 2022.

Versatile Credit’s data analysis is supported by activity taking place among the 1,400 merchants across the U.S. that use its credit aggregation and customer acquisition tool, according to the press release.

For shoppers, the firm’s technology provides connection with financing that works for them, without hard credit checks for products for which they may not be eligible, according to the press release.

For merchants, the tool facilitates offering customers the credit they need, when they need it, so they can close the sale, the release said.

During January, Versatile Credit found that prime and no-credit-needed providers showed the most growth in approved applications, while secondary, near-prime lenders saw growth in the number of applications but a slight decrease in approvals, according to the release.

“We are projecting to see a significant increase in the number of applications processed through our platform, with a target of 5 million total applications in 2023,” O’Donnell said in the release. “It’s clear that our technology and focus on delivering a seamless and efficient financing experience is resonating with merchants and their customers.”