Hello and welcome to Furniture Industry News, your Go to podcast for staying up to speed with what's happening in the furniture business.

Today is Wednesday, April 16, 2025.

We've got a lot to talk about, Rising consumer focus on pricing, how tariffs are impacting freight and product flow, some interesting gains in furniture sales last month, and the return of a well known name in retail.

Let's get right into it.

So first up, consumer behavior is shifting in a noticeable way and it's not too surprising given the current economic climate.

According to a new survey, the top priority for most shoppers right now is finding the lowest possible prices.

In fact, more than half of those surveyed said that getting the best deal is what's guiding their purchase decisions in the coming months.

That's a big shift from recent years where convenience or brand loyalty may have played a larger role.

For retailers and furniture professionals, that means competitive pricing is more important than ever.

But it's not just about slashing prices.

It's about finding the right balance between value and profit.

Consumers are still looking for quality, but they're much more selective about what they're willing to spend on.

Essentials are in, luxuries are out.

People are choosing function over form, especially when it comes to bigger ticket items.

Now this focus on affordability is playing out against the backdrop of broader retail trends.

In March, retail sales saw a moderate bump, rising 0.7% from February and 4% compared to last year, according to the National Retail Federation.

This increase was driven in part by shoppers trying to get ahead of possible price hikes due to new tariffs.

Yes, those tariffs are starting to ripple through the system.

We're looking at steep increases on imports from China, with rates reaching as high as 145% for certain goods.

That's no small hit for the furniture industry.

That means higher costs on raw materials, components and finished goods, especially if those products are part of the import stream.

It's also creating a big question mark around pricing strategies going into summer.

And it's not just furniture retailers that are dealing with these challenges.

Freight carriers are feeling the heat too.

J.B.

hunt, one of the largest transportation and logistics companies in the US Saw its profits drop in the first quarter.

Operating income fell by 8% compared to last year.

And a big part of that has to do with the tariffs and the slowdown in shipping demand.

Companies are more cautious about moving inventory.

They're waiting to see how long these tariffs will last and whether it's worth committing to large scale shipments.

Right now.

For freight providers, that means fewer loads and less revenue.

But it's not all bad news.

There's still strong demand in some areas, particularly where inventory is needed to meet short term spikes in consumer demand like what we saw in March.

Ocean carriers are also making changes in response to the tariff environment.

Many are skipping Chinese ports entirely or cutting back on scheduled sailings, what's called blank sailings in the shipping world.

This kind of move reduces capacity and helps carriers keep rates stable, but it also makes the supply chain less predictable for retailers.

What this means for the furniture industry is longer lead times and more pressure to place orders earlier, especially if those products are being sourced from Asia.

It also means planning has to be a bit more strategic.

Retailers can't afford to take a wait and see approach forever, but jumping the gun could be just as risky if shipping costs or availability suddenly change again.

Now let's talk about something a little more positive.

March was a big month for furniture sales.

According to the Department of Commerce, furniture store sales were up 7.7% compared to the same time last year.

That's a solid jump and shows that even with all the uncertainty, people are still buying furniture, especially ahead of potential price increases tied to tariffs.

A lot of this was driven by consumers looking to make purchases before prices go up.

In fact, several retailers reported that customers were accelerating buying decisions, picking up items now rather than waiting for summer.

It's kind of a buy now or pay more later mentality.

While this is good news for short term sales, it does raise some concerns about what demand will look like in the second half of the year.

Some industry insiders say the uncertainty around tariffs is already slowing down new product commitments.

Companies don't want to launch new collections or place big bets on inventory if they don't know how much it's going to cost to bring it in.

So while March looked good on paper, we may see a cooling off period ahead unless there's some clarity on trade policies.

And in the middle of all this, a familiar name is making a return.

Big Lots, the discount retailer, which had been struggling and closed a number of stores, is opening its first round of new locations under new ownership.

Variety Wholesalers acquired the leases for over 40 big lot stores, and nine of those are now set to reopen soon.

With more on the way, these new Big Lot stores are staying true to the brand's roots budget friendly products, home furnishings, seasonal decor and general merchandise that appeals to cost conscious shoppers.

The timing couldn't be better.

With consumers watching every dollar, a refreshed Big Lots might just find a new audience or win back old ones who had drifted away.

And it's worth noting discount and value based retailers like Big Lots are in a strong position to grow in this kind of environment.

As shoppers become more price sensitive, they're seeking out stores that offer more for less.

That trend is something the whole furniture industry should keep an eye on.

It might mean expanding into lower priced product lines or or looking at alternative supply chains that can keep costs down.

So to recap, consumers are focused on price.

Retail sales are seeing short term boosts partly due to fears over rising costs.

Tariffs are making waves in freight and product planning and March was a strong month for furniture sales.

But questions remain about what's ahead.

Meanwhile, Big Lots is betting on budget conscious shoppers as it stages its comeback.

If you found this episode helpful, be sure to subscribe to Furniture Industry News wherever you get your podcasts so you don't miss the next one.

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