Game of Sofas: Furniture Sales in Menomonie, WI

Abstract

In December of 2016, Slumberland opened its doors in Menomonie, WI thereby increasing the level of competition in a relatively small market. In this paper, the furniture market of Menomonie, Wisconsin is analyzed. Local firm level data is used to measure the intensity of competition, parity of sales, and market power. Examining pricing techniques employed by the firms, an outlook on future furniture sales and contemporary issues are also discussed. This analysis provides insights about contemporary and future competition in Menomonie furniture market. The findings suggest that the newest entrant in the Menomonie furniture market has become the largest local provider of furniture sales and utilized advantageous price techniques. It is estimated that Slumberland is currently responsible for 60% of local furniture sales and is also able to maintain the largest mark-up on their products. These results indicate that Slumberland has obtained a dominant position with respect to market share and market power. However, online furniture sales continue to increase, which could impact physical retail stores due to their operating costs.