Welcome to Furniture Industry News.

Today is Friday, April 18, 2025.

If you're in the furniture business, whether in retail, manufacturing or logistics, this episode will get you caught up on the key developments impacting our industry this week.

Let's start with some good news out of the housing market.

According to the latest government data, March saw a 3.9% increase in housing completions compared to the same time last year.

That brings US to around 1.55 million units completed.

Single family homes making up about two thirds of that total.

New housing starts also ticked up by nearly 2% year over year, though they were slightly lower than February's numbers.

Building permits were essentially flat, down just 0.2% from March 2024.

Why does this matter to us?

Because more housing activity usually means more furniture sales.

When people move into a new home, they're often looking to furnish it from top to bottom, so these numbers are definitely something to keep an eye on.

Now, while that might sound like a green light for demand, the retail environment is sending more of a mixed message.

US retail sales in March rose 1.4% from February, and they're up 4.6% compared to March 2024.

On the surface, that seems strong, but there's a twist.

A big driver behind the sales spike appears to be consumer concern over tariffs.

That's right, people are rushing to make major purchases before prices potentially jump.

Auto sales led the charge, jumping over 5% in March.

Appliances were strong, too, but furniture and home furnishings, not so much.

That category actually saw a 0.7% drop from February.

So while the total retail picture looks rosy, our specific corner of the industry is feeling a bit of the squeeze.

Much of this comes down to the growing anxiety around tariffs.

With the Trump administration rolling out up to 25% tariffs on imports from countries like China, Mexico and Canada, both retailers and consumers are bracing for impact.

A lot of businesses are either pausing or outright canceling orders right now, trying to figure out how to manage rising costs without scaring off price sensitive shoppers.

Furniture suppliers are taking notice, and some are stepping up with strategies to keep things steady.

Ashley Furniture, for example, has announced it will absorb the added costs tied to the new tariffs.

For now, they're doing this to help maintain price stability and keep business flowing for their retail partners.

Flexteel is doing something similar.

They're holding prices steady for all products made in North America, and they've also committed to absorbing Most of the 10% tariff on goods coming from Vietnam.

Elements International is going half seas with its retailers, splitting the 10% tariff on imports from Vietnam and Malaysia right down the middle.

These moves are clearly meant to ease retailer worries, keep order volume from slipping too far, and give the supply chain a bit of breathing room while things settle.

Now, while that's playing out in the US Market, over in the UK Dunelm, a major home goods retailer, is showing that the right strategy can still drive growth, even during shaky economic times.

For the 13 weeks ending March 29, Dunelm reported a 6.3% jump in sales, hitting $462 million.

That's a solid quarter by any measure.

What's even more impressive is that digital now accounts for 41% of their sales, up 4 points from last year.

They've leaned heavily into categories like pillows, rugs and seasonal home accessories, things people are willing to spend on even when budgets are tight.

They've also had a strong start with their spring summer collections, which they credit for keeping customer interest high both in store and online.

So what's the lesson there?

Well, while some companies are still struggling to adapt, others are finding ways to make digital work for them.

And that's something we all need to be thinking about.

Speaking of digital, let's talk about Millennials for a minute, because they're still shaping the future of retail, especially when it comes to furniture.

A new survey found that millennials, those between 29 and 44, are still big believers in online shopping.

Sure, more of them are going back to stores now that pandemic restrictions are in the rearview mirror.

But digital convenience remains a top priority.

They expect options like quick shipping, easy returns and and strong online support.

And they want to do product research before even stepping foot in a store.

For furniture retailers, that means having a strong e commerce strategy is no longer optional.

If your website isn't easy to navigate, if your product pages aren't detailed, and if your checkout experience isn't smooth, you're going to lose those customers before you even get a chance.

Millennials also lean toward values based shopping.

They want to support brands that prioritize sustainability, transparency and customer care.

So if your company has those strengths, now is the time to lean into them and make sure your messaging reflects it.

All these topics housing growth, tariff concerns, retailer responses, and shifting shopper behavior tie back to one key takeaway.

We're in a moment of transition.

Supply chains are being tested again.

Price sensitivity is rising.

Digital expectations are getting sharper.

But there's also opportunity, especially for businesses that are flexible, proactive and and willing to meet customers where they are both physically and digitally.

So what should professionals in the furniture industry be doing right now?

First, keep watching the housing data.

It's a forward looking signal for demand.

Second, stay close to your suppliers.

Many are willing to partner and find solutions to tariff challenges.

Third, don't sleep on your digital game.

Whether you're a one location retailer or a national brand, your online presence matters more than ever.

And lastly, keep listening because every week we'll break down the biggest stories that help you stay a step ahead in a fast moving industry.

That wraps up today's episode of Furniture Industry News.

If you found this helpful, don't forget to subscribe so you never miss an update.

Thanks for tuning in and we'll see you next time.