Hello everyone and welcome to another episode of Furniture Industry News.

It's June 13, 2025 and I'm back with the latest developments in the furniture and retail world that matter to you.

No pitch, just insights to help you stay ahead.

Let's dive into the international scene first.

A recent survey from the Maison and Objet Trade show polled hundreds of global furniture and decor retailers across dozens of countries.

Results aren't exactly sunny.

Most most respondents reported lower sales of furnishings and related items compared to this time last year.

On the flip side, niche areas like giftware and kitchenware actually saw growth.

Around 28% of retailers said giftware sales were up, and about 30% said the same for kitchenware.

Inventory levels seem to be holding steady and on average, retailers are introducing five new brands into their product mix over a six month period.

That tells me that while mainline furniture may be soft right now, the there's opportunity in smaller or themed collections shifting to the U.S.

one headline is making waves.

Most American shoppers won't absorb price hikes tied to tariffs A new Survey shows that 60% of consumers won't tolerate more than a 10% increase from tariff driven costs, and about 70% plan to cut back once those higher costs kick in.

Millennials are leading the way in planned cutbacks, and even Gen Z is pushing to purchase bigger items like electronics before prices go up.

What's more, only about 20% of Americans feel ready for tariff related increases, with nearly a third saying they're not prepared at all and over half expressing concern.

Retailers are clearly taking notice.

A majority have already shifted sourcing away from high tariff countries, and many are passing costs directly to consumers.

Some companies are choosing to absorb the extra costs, but that's a smaller group.

Others are looking at adjusting product formulations or packaging to mitigate price hikes in subtler ways.

That said, consumers aren't likely to sit back quietly.

One recent study shows that most shoppers are loyal to retailers who absorb costs, and a solid majority say they'll stop buying from brands that hike prices too much.

Still, more than 80% of retail executives say they plan to raise prices anyway, Even though nearly 70% expect to get some pushback from customers.

So there's a clear trade off here.

Retailers may protect their margins but risk losing long term customer loyalty.

In response to these pressures, big name retailers are making moves.

Walmart has announced price increases on a range of items, including basic goods like bananas and car seats, as a direct result of tariffs.

Meanwhile, Target's leadership has said raising prices is a last resort, opting instead to lean on supply chain efficiencies and strong vendor relationships across the board.

We're seeing retailers stock up on goods now, trying to hedge against future tariff hikes.

Foot traffic and sales numbers are painting a mixed picture.

In the uk, data shows that footfall dropped in May.

Overall retail traffic was down, with high streets and shopping centers seeing noticeable dips.

Retail parks, on the other hand, had a small increase.

In the US Sales data suggests a pull forward effect happened in April and May, meaning people made purchases earlier than usual to beat expected price hikes.

But now that effect is starting to fade, and May sales only inched up slightly compared to the previous month.

What does all this mean for the furniture industry?

It's a balancing act.

Retailers are trying to manage their inventories strategically, stockpiling when it makes sense, but not going too deep on items that aren't moving.

US Consumers are clearly more cautious now, especially younger generations who are very price sensitive.

And internationally, demand is all over the map, depending on product category and region.

One clear trend is that shoppers are more willing than ever to visit multiple stores or websites to compare prices.

Almost 40% of in person grocery shoppers and nearly 50% of online grocery shoppers say they often compare prices across retailers.

That mindset applies to furniture too.

If a customer can save on a similar item by going elsewhere, they will.

So what can furniture professionals do?

First, be transparent.

Whether it's on your website or in conversations with customers, being open about why prices are changing, whether it's due to tariffs, shipping or raw materials can go a long way.

Second, look at diversifying your supplier base.

This is a good time to reduce reliance on countries hit hardest by tariffs and explore more stable alternatives.

Third, take note of what's working.

Giftware and kitchenware are still performing well globally, so it might be worth investing more in those areas.

Fourth, pay attention to your inventory.

Be ready to pivot based on what foot traffic and sales trends are actually showing.

There's also the opportunity to improve the shopping experience.

Some retailers are adding things like lounges, coffee bars and even outdoor spaces to keep customers in store longer.

While that may not be realistic for every furniture store, thinking about ways to make your space more inviting could help.

The longer a shopper stays, the more likely they are to buy.

Looking forward, a new trend is starting to emerge.

Shopping agents.

These are AI powered tools that act on behalf of customers, doing the research, comparing prices and even placing orders online.

That means retailers need to make sure their product data is clear and accessible because these agents will be pulling from wherever they can find the best deal.

If your pricing and inventory aren't updated online, you might miss out.

Stepping back the bigger picture is the furniture industry is operating in an uncertain environment.

Tariffs are creating cost pressures and consumers are getting more selective.

But there are also areas of growth and innovation.

Retailers that can be agile, whether through sourcing, pricing or customer engagement, are going to be better positioned to ride out the bumps.

To wrap things up, here are a few key takeaways.

Be open with your customers about cost changes.

It builds trust.

Diversify your suppliers to reduce your exposure to tariffs.

Focus on high performing categories like giftware and kitchenware.

Make your store a place customers want to spend time.

Get ready for AI shopping agents.

Keep your online info clean and current.

That's your update for today.

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We'll keep bringing you the news that helps you navigate the challenges and the opportunities in our ever changing industry.

Thanks for tuning in.