Today is October 8, 2025, and welcome to Furniture Industry News.

I'm glad you've tuned in.

Today, we'll walk through what's going on in residential furniture orders, how consumers are thinking about purchases, tariff pressures and import dynamics, holiday season expectations, Ikea's logistics strategy and Bed Bath and Beyond's repositioning.

Think of this as a strategic snapshot for industry professionals.

Let's begin with recent strength in residential furniture orders.

According to the Smith Leonard Furniture Insights report, new residential furniture orders in July rose 13% compared to July of the previous year.

They also increased 6% over June.

Shipments in July rose about 3% year over year, though shipments were down slightly month over month.

Backlogs were down 4% from a year ago, but up modestly from June, as orders outpaced shipments.

Receivables and inventories are largely stable, with inventories down slightly on a seasonally adjusted basis.

Retail sales at furniture and home furnishing stores in July 2025 were up 1.4% from June and 5.1% year over year.

Year to date, sales are up 5.7%.

However, the picture isn't uniformly positive.

In a prior month, new furniture orders in April 2025 dropped 9% compared to April 2024, and shipments also declined.

Some industry observers have suggested that parts of the sector may already be in a mini recession, especially in product categories or companies more exposed to tariff pressures.

So what explains the swings?

A key factor is tariff uncertainty, which has shaken confidence, disrupted sourcing plans and pushed some buyers to defer or pull forward orders.

Turning now to consumer sentiment and furniture purchasing plans, the fall edition of Consumer Insights now finds more than 75% of prospective furniture shoppers describe the economy as poor or fair.

Nearly 44% said conditions are terrible or poor, and another 32% said fair, leaving only about 22% viewing the economy as good or excellent.

Because of this environment, about 7 out of 10 furniture shoppers say they've already delayed a purchase due to economic conditions or trade concerns in their week by Week reporting.

CIN Week 3 reveals that upholstery remains the top category consumers plan to buy for the rest of the year.

About 39% of respondents say they intend to purchase a sofa between August and December, followed by area rugs, mattresses, occasional tables, lamps, recliners and primary bedroom furniture.

Also telling 64% of shoppers began their search online, and 51% visited a physical store.

Crucial purchase attributes include comfort, size, color, ease of cleaning, warranty, durability, often defined as 15 years positive reviews, free delivery, easy returns and the ability to see the product in person.

These consumer data reinforce that even in uncertain times, many are still in market, but they are choosy and disciplined about how, when and where they buy next.

Let's dive into the trade and logistics side, where tariffs and import patterns are causing headaches and recalibration.

Retailers and importers reacted to tariff escalations by front loading shipments to beat rate increases.

But with new reciprocal tariffs in place and de minimis thresholds eliminated, imports are now forecast to drop sharply in the latter months of 2025.

Ports may see a steep decline in container volumes.

Some retailers are proactively managing this risk.

They are expediting orders before tariffs take effect, using alternative logistics such as air freight, restructuring SKUs and optimizing promotions to absorb or mass cost changes.

Others are rethinking sourcing regions, exploring near shore or lower tariff countries to diversify risk.

One retail strategy guide argues that brands should balance short term mitigation tactics with longer term strategic supply chain shifts to avoid overcommitting too early.

Analysts also point to the broader inventory cycle.

If importers pare down inventories, that may eventually create conditions for a rebound.

But timing is uncertain and depends heavily on policy clarity as we look toward the holiday season, forecasts emphasize that 2025 is likely to be unpredictable in both timing and consumer behavior.

Some consumers plan to spend roughly in line with last year, but many expect higher prices.

E Commerce continues its role as a battleground.

Retailers that can match inventory agility, pricing strategy, timing and digital convenience may gain advantage.

On a logistics and tech front, IKEA has made a notable move.

Inca Group has acquired the US Logistics AI company Locus, which specializes in delivery routing and order grouping.

The acquisition aims to enhance delivery speed, flexibility and real time order management.

IKEA expects the deal to reduce delivery costs by around 100 million annually.

The plan is to pilot the tech in the US And UK before rolling it out more broadly.

By bringing routing intelligence and operational agility under its control, Ikea is positioning itself to better absorb trade and supply chain volatility.

Finally, we turn to Bed, Bath and Beyond and its evolving strategy to return to physical retail.

Beyond Inc. Has completed a $10 million acquisition of the Kirklands Home trade name and related brand assets.

This move supports their plan to convert Kirkland's Home stores into Bed, Bath and Beyond locations, expanding national footprint and operational efficiency.

Part of the strategy also involves expanding Kirkland's Home into the wholesale channel to generate new revenue streams.

The reactivation of physical stores is central to their growth posture.

They aim to combine curated assortments with omnichannel reach, leveraging legacy brands and supply relationships.

If their early store conversions continue to perform, they may accelerate rollout across more markets.

In sum, we are operating in a landscape of mixed signals.

Demand is showing pockets of strength, but volatility, tariff pressure, and consumer caution are strong counter forces.

The companies that navigate best will be those that retain flexibility, stay closely attuned to consumer sentiment, optimize inventory and logistics rigorously, and incorporate strategic use of technology and sourcing diversity.

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