Welcome to Furniture Industry News for Wednesday, May 21, 2025.

This is your go to podcast for the latest updates and insights that matter most in the furniture world.

No hype, no fluff, just the information you need to stay ahead in the industry.

Let's dive into one of the most noticeable shifts happening right now.

Consumers are changing the way they shop and it's all being driven by rising prices.

A recent study shows that price increases are starting to rattle consumer loyalty.

Over half of consumers are now holding off on purchases until there's a sale or discount, and nearly half say they're switching to lower cost brands when possible.

That loyalty that used to stick around even when prices rose, it's now a lot more fragile.

And when it comes to furniture, which is often a bigger ticket purchase, people are rethinking what and when they buy.

Consumers are far more open to exploring new brands, which could present an opening for smaller or lesser known furniture makers who can deliver quality at better price points.

That shift could change how retailers position themselves, especially if they're relying on brand recognition alone to move product.

Now, despite this cautious consumer behavior, April still brought in a small rise in retail sales, up 0.1%, though that's a noticeable slowdown from the 1.7% jump we saw in March.

So what happened?

March's bump was likely driven by shoppers trying to get ahead of potential tariff related price hikes.

But by April, that urgency cooled off.

Consumers seem to be tightening their wallets a bit, possibly out of concern for where the economy's heading.

And speaking of tariffs, those are continuing to weigh heavily on the home goods and furniture sectors.

Even though there's currently a 90 day pause on new tariffs, companies are still feeling the heat.

According to a new survey by the International housewares association, nearly 90% of member businesses say tariffs are causing real problems.

Some are even cutting jobs or canceling shipments to deal with the uncertainty.

What's really striking is that the pause hasn't brought much relief.

It's the unpredictability that's creating challenges.

Companies don't know how to plan for the next few months, and that means inventory delays, cost increases and disruptions across the board for furniture professionals.

That makes it harder to maintain price consistency or deliver on time, which ultimately affects the customer experience.

Mike Root, a longtime sales rep in the industry, recently weighed in with some thoughts on what's ahead.

He points out that the traditional Memorial Day sales period is coming up fast, and that's usually a bright spot for retailers.

But this year there's a cloud hanging over it.

Between tariffs, tighter consumer budgets and inflation related cost increases, the outlook is more cautious than optimistic.

The advice?

Stay nimble.

Retailers and manufacturers who can adjust quickly well, whether it's through pricing strategies, sourcing alternatives or streamlining logistics will be the ones who hold steady.

Still, it's not all doom and gloom.

One bright spot is the housing market, which might just give the furniture industry a lift in unexpected ways.

A new realtor.com survey found that nearly 30% of people are actually more likely to buy a home if the economy heads into a recession.

That may seem counterintuitive, but here's the thinking.

With fewer buyers in the market, interest rates stabilizing and home prices coming down slightly, these buyers see opportunity for the furniture world.

That means potential customers.

A new home often means a need for new furniture, and people who finally close on a property are often ready to spend even in a downturn.

It's worth watching closely.

If the housing market continues to stabilize or even tick upward slightly, that could soften the blow from declining discretionary spending in other categories.

Now here's another interesting trend tied to homeownership.

According to new research from Consumer Insights now, a growing number of new homeowners are actively seeking help when it comes to furnishing and decorating their spaces.

About 24 cent said they plan to work with a Designer, and another 8% are thinking about it.

That may not sound like a huge number, but it's significant when you consider how people used to shop mostly on their own, mostly in store.

Now they want expertise.

And here's where it gets even more relevant financing.

Among those planning to work with a designer, 80% said they'd be more likely to follow through on their furnishing plans if designer specific financing options were available.

That's a big deal.

It suggests that retailers or manufacturers offering flexible payment options could better support not just the customer but also the designers who are influencing those purchasing decisions.

What does this mean for furniture professionals?

It may be time to rethink partnerships not just with designers but also with lenders, fintech companies and platforms that enable fast and simple financing.

If consumers are signaling that they want help and are willing to spend more when help is available, there's a clear path to increasing ticket sizes and customer satisfaction.

Meanwhile, another layer to all of this is how these consumers are discovering brands.

That same study on shifting loyalty shows that people are increasingly researching online, relying on reviews, and using social media as a shopping guide for established furniture brands.

That means digital presence is more important than ever for emerging brands.

It's a chance to show up where it matters on Instagram, Pinterest, TikTok, or in Google results, because that's where consumers are looking for validation.

So where does that leave us?

The furniture industry is dealing with a complex mix of pressures right now, with rising prices are pushing shoppers to become more cost conscious, tariffs are squeezing operations, and economic concerns are slowing retail momentum.

But there are also bright spots the potential for homeownership growth during a recession, consumers willing to spend on design help, and opportunities to meet people where they're shopping, both literally and digitally.

If there's one theme tying it all together, it's adaptability.

The businesses that are going to weather this storm are the ones that listen to consumer needs, stay flexible on strategy and and use every available tool to build trust in uncertain times.

Whether that's financing, digital outreach or supply chain agility, this is a moment where staying static is riskier than taking a smart, calculated leap forward.

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

If you found this helpful, make sure to hit subscribe so you never miss an update on the trends and developments shaping the furniture world.

Thanks for listening, and we'll catch you next time.