Consumer Confidence, Third-Quarter Growth, and a Home Decor Partnership

Originally published October 30, 2024. This version was rebuilt from The Conference Board, BEA's advance GDP estimate and Kirkland's 8-K for the FIN archive, and the facts are as of that date.

The last days of October 2024 brought the strongest jump in consumer confidence in more than three years, solid economic growth and a new tie-up in home decor retail.

The short version

• The Conference Board's index increased in October to 108.7 from 99.2.
• BEA said real GDP increased at an annual rate of 2.8% in the third quarter.
• Kirkland's entered into a strategic partnership with Beyond, Inc. including a $17 million term loan.

Consumer confidence reaches new heights

The Conference Board said its Consumer Confidence Index increased to 108.7 in October from 99.2. The Present Situation Index rose 14.2 points to 138.0 and the Expectations Index rose 6.3 points to 89.1.

Its chief economist called it the strongest monthly gain since March 2021, with all five components improving.

Economy grows

BEA's advance estimate showed real GDP increased at an annual rate of 2.8% in the third quarter, after 3.0% in the second. Consumer spending, exports and federal spending led the increase.

Within goods spending, the leading contributors were other nondurable goods, led by prescription drugs, and motor vehicles rather than home furnishings, a reminder that consumers were spending but not yet on furniture.

Industry partnership. Beyond and Kirkland's

On October 21 Kirkland's entered into a strategic partnership with Beyond, Inc., the owner of the Bed Bath & Beyond brand. Beyond provided a $17 million term loan, including an $8.5 million portion set to convert to equity.

Under the deal Kirkland's would operate neighborhood stores and shop-within-a-shop locations under Beyond-owned brands, paying royalties on sales, which gave Beyond a physical retail path for the Bed Bath & Beyond name.

Update. Kirkland's later finalized a $25 million investment from Beyond.

Looking ahead

Consumers and the broader economy were in better shape than furniture sales suggested. Partnerships like Beyond and Kirkland's showed retailers looking for new ways to reach shoppers when demand returned.

Related on FIN

• Furniture Shoppers Are Holding Back
• Every Door in Town

Sources

• The Conference Board, US consumer confidence bounced back in October (Oct. 29, 2024)
• U.S. Bureau of Economic Analysis, GDP, third quarter 2024 (advance estimate)
• Kirkland's, Inc., Form 8-K, strategic partnership with Beyond (Oct. 21, 2024)
• Kirkland's, Inc., Kirkland's finalizes $25 million investment from Beyond