Welcome to Furniture Industry News, your source for the latest updates from the furniture world.

I'm here with you on Friday, June 6, 2025, bringing you the important news that matters to furniture professionals like you.

Let's start with some challenging news that many of you are probably feeling firsthand.

A new survey from Alignable shows that the home furnishing sector is among the hardest hit when it comes to small business struggles, the numbers are pretty stark.

59% of home furnishings business owners say their income is half or less compared to what they made in 2024.

That puts our industry second only to travel and lodging businesses in terms of revenue drops.

What's driving this decline?

The survey points to three main tariffs, inflation and customers simply spending less.

It's a tough combination that's hitting small furniture businesses particularly hard.

The survey found that overall, 55% of small businesses are earning 50% or less than they did a year ago, and that number has been climbing steadily from 45% back in December.

So what are furniture business owners doing to fight back?

The survey shows they're focusing on keeping the customers they already have, cutting costs wherever possible, and working harder to network and find new customers.

Many are also expanding into new markets or services, finding new suppliers to diversify where they get their products, and some are raising prices to stay afloat.

It's all about getting back to basics and doing whatever it takes to survive.

Speaking of survival strategies, let's talk about what this means for the workforce in our industry.

A recent survey from workvivo reveals some concerning trends about frontline workers across retail and manufacturing sectors, including furniture.

Only 13% of frontline workers see a clear path for career advancement at their companies.

That's a problem for all of us because these are the people who interact with customers every day and keep our operations running.

The survey found that 87% of frontline workers aren't sure if their company culture even applies to them.

They feel disconnected, excluded from important communications and unsupported in their daily work.

Half of these workers believe office employees get better treatment than they do, and 54% would leave their current job for better career opportunities even if the pay stayed the same.

This disconnect is costing our industry.

When frontline workers feel undervalued, it shows in customer service and overall performance.

The survey found that only 35% of frontline workers feel recognized for their individual contributions, and 38% say being praised in front of their peers means more to them than getting a bonus.

These are simple fixes that could make a big difference in retention and performance.

Moving on to some industry leadership changes, there's been a significant shift at the Home Furnishings Association.

Shannon Williams is out as CEO of the hfa, marking another change in leadership for the organization that represents many furniture retailers across the country.

This comes at a time when the industry really needs strong advocacy and support, especially with all the challenges we're facing with tariffs and economic pressure.

The HFA has been working to support retailers through these tough times, and leadership stability is important for continuing those efforts.

The organization recently announced their 2025 retailer of the Year winners, recognizing companies like Lax Furniture and Saunders Furniture for excellence in innovation, branding and customer experience.

These success stories show that even in difficult times, some retailers are finding ways to thrive.

Unfortunately, not all the news is positive when it comes to retail operations, we're seeing more store closures across the country.

A modern furniture retailer is closing their South Dakota showroom, adding to the list of physical retail spaces that couldn't weather the current economic storm.

This follows a pattern we've been seeing where retailers are having to make tough decisions about their brick and mortar presence.

Even more concerning is the news of a 101-year-old Delaware retailer closing their flagship store.

When businesses that have survived for over a century are forced to shut down, it really highlights how challenging the current environment is for furniture retailers.

These aren't new businesses that made poor decisions.

These are established companies with long histories that simply couldn't adapt fast enough to the changing market conditions.

These closures represent more than just business failures.

They're the loss of local jobs, community gathering places and generations of expertise in furniture retail.

Each closure also means customers in those areas have fewer local options for furniture shopping, which could drive more business online and away from traditional furniture stores.

Looking at the bigger picture, our industry is dealing with a perfect storm of challenges.

Consumer spending is down, inflation is affecting both businesses and customers, tariffs are making imported furniture more expensive, and the housing market uncertainty is keeping people from making major furniture purchases.

Add in the competition from online retailers and big box stores and it's clear why so many furniture businesses are struggling.

But there are reasons for cautious optimism.

The survey data shows that 56% of small business owners in our sector are confident they can adapt and weather a potential recession.

Three quarters have at least one month of cash reserves and 52% have three months saved up.

That shows resilience and planning that could help businesses survive until conditions improve.

The key seems to be getting back to fundamentals taking care of existing customers, managing costs carefully and being smart about where to invest limited resources.

Businesses that can focus on what they do best while being flexible about everything else are the ones most likely to make it through this difficult period.

For those of you listening who are dealing with these challenges in your own businesses, you're not alone.

The data shows that the vast majority of furniture businesses are facing similar pressures, and the ones succeeding are doing so by being creative, staying close to their customers, and not being afraid to try new approaches.

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

These are challenging times for our industry, but staying informed about what's happening helps us all make better decisions for our businesses.

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