Welcome back to Furniture Industry News.

Today is Monday, April 28, 2025 and we've got a lot of important updates to cover to keep you in the loop on everything happening in the furniture industry.

Starting off, existing home sales in March fell by 2.4% compared to March of last year.

This decline may seem small, but it's part of a trend that's been putting pressure on the housing market.

Fewer homes being sold means fewer new homeowners shopping for furniture, which impacts our entire industry.

High interest rates and limited inventory continue to create challenges for buyers, and that ripple effect is something manufacturers and retailers should definitely watch closely.

At the same time, consumer sentiment is continuing to fall.

According to a recent report, concerns about inflation and potential tariffs are making people more cautious about spending.

When people feel less confident about their financial future, they tend to delay bigger purchases and unfortunately, that usually includes furniture.

Retailers may need to work a little harder right now, focusing on promotions and value driven messaging to keep customers engaged.

Now, speaking of tariffs, they are a hot topic at this year's High Point Market.

With new tariffs on the horizon, many buyers are adjusting their strategies.

Some are pulling back on their orders, worried about price hikes, while others are looking for new suppliers in different countries to avoid extra costs.

There's definitely a more cautious tone in the air compared to previous markets, and many believe this attitude will continue through the summer.

Industry veteran Jerry Epperson also shared his insights at High Point.

He acknowledged the heavy concerns around tariffs and logistics challenges, but also pointed out a sliver of hope.

According to Epperson, we might see a housing rebound in the second half of the year, which would bring new energy to the furniture market.

Of course, that will depend heavily on interest rates stabilizing and consumer confidence recovering.

Still, it's good to hear there's a chance for better news later in the year.

In The Business World, LenPro and Splice Software have formed a strategic partnership to enhance how retailers handle financing at the point of sale.

LenPro's financing solutions, combined with Splice's communication tools, aim to make it easier and less intimidating for customers to finance big purchases.

This could be a key advantage for furniture retailers trying to close more sales, especially as shoppers become more cautious with their spending.

Switching gears, let's talk about some major changes happening with Big Lots.

Variety Wholesalers, the parent company of Rose's Discount stores, has acquired 219 big lot stores out of bankruptcy.

They're planning to take Big Lots in a new direction.

Instead of focusing heavily on furniture like the old Big Lots, they're scaling back furniture and leaning into offering name brand apparel at low prices.

Brands like Tommy Hilfiger, Michael Kors and Andrew Mark will be featured under Big Lots.

New Brands for Less concept furniture isn't going away completely, but the focus will shift towards smaller home decor items like rugs, lamps and accessories.

CEO Lisa Sighis explained that they want to bring back the treasure hunt shopping experience that made Big Lots special in its early days.

Instead of just being a destination for a new sofa, Big Lots will offer customers new surprises each time they visit.

Saiges also pointed out that Big Lots will move toward everyday low prices while rather than offering limited time sales that confused shoppers in the past.

And unlike many off price competitors, Big Lots will continue selling shelf stable groceries and household essentials like toilet paper and cleaning supplies, giving customers more reasons to shop in one stop behind the scenes, Variety Wholesalers is moving fast.

They've already reopened nine stores across several southern states and plan to open over 130more in May.

They're using their existing Roses distribution centers to support the new Big Lots operations, and even before the acquisition was finalized, they had already started buying merchandise in anticipation of tariffs, showing just how quickly they moved to stabilize operations.

Importantly, the new Big Lots managed to retain about 65% of its store level staff, keeping the local community spirit alive.

Variety is making sure Big Lots and Roses stay distinct, with separate buying teams and strategies tailored to each brand's customer base.

Saiges also emphasized the importance of rebuilding vendor relationships which had been strained during Big Lots bankruptcy.

Vendors are reportedly happy to see Variety step in, bringing a strong credit history and a commitment to paying on time.

That trust should help Big Lots bring in better merchandise and create a more exciting shopping experience.

Zooming out a Bit the repositioning of Big Lots could have ripple effects across the off price retail space.

By reducing their focus on big furniture pieces, they're creating an opening for other retailers to capture that market.

Meanwhile, Big Lots will be competing more directly with stores like TJ Maxx and Ollie's Bargain Outlet in the apparel and home goods spaces.

Overall, it's a dynamic time for the furniture industry.

Between the slowdown in home sales, declining consumer confidence, tariff concerns and these major retail shifts, there's a lot to stay on top of.

But even with these challenges, there are opportunities.

If the housing market rebounds later this year, and if retailers adapt smartly to changing consumer behavior, there's definitely room for optimism.

That's all for today's episode of Furniture Industry News.

Thanks so much for tuning in.

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We'll see you next time.