Welcome back to Furniture Industry News.

Today is September 24, 2025, and as always, we're here to bring you the stories shaping the world of furniture and home retail.

This podcast is designed for professionals across the industry, people who want the latest updates without having to sift through all the headlines themselves.

So let's dive in.

One of the most interesting studies making the rounds right now takes a close look at how people are actually spending their time at home.

We've all seen the shifts over the last few years with more people working remotely, cooking in and investing in their living spaces.

This new research gives us a better picture of what that looks like in daily life.

Not surprisingly, people are spending more time in their living rooms, kitchens and home offices.

What's interesting though, is how these patterns are influencing what they buy.

For example, multifunctional furniture pieces that can serve a couple of different purposes is seeing higher demand.

Consumers also continue to value comfort over flashy design.

This matters for retailers and manufacturers because it helps guide where to put focus, more practical designs, more comfortable materials and layouts that support both work and relaxation.

And speaking of consumer behavior, returns continue to be one of the thorniest issues in retail, and that includes furniture.

A new report shows that about 70% of merchants now charge some kind of return fee.

That's a big shift from the days when free returns were the norm.

For furniture retailers, this trend is particularly relevant.

Large items are costly to ship and even more expensive to process when they come back.

Charging a fee helps cover some of those costs, but it also risks frustrating customers.

The balancing act here is making sure policies are clear and communicated upfront.

Transparency is key.

People don't like surprises when they're trying to send something back.

This broader retail trend may also give furniture sellers some cover to implement or raise their own return fees without standing out as the only ones doing it.

Now let's shift to company news.

Millenol reported strong first quarter earnings and the story behind it is encouraging.

Their sales growth helped drive better than expected results and the company credits both commercial and consumer markets.

Office furniture in particular continues to be a stabilizing force for them, with businesses still investing in updated workspaces even as hybrid arrangements evolve.

On the residential side, Miller Knoll has managed to stay relevant with designs that appeal to younger buyers who are prioritizing both sustainability and long term quality.

Financial strength like this is a good sign for the broader industry.

It shows that even in a challenging economy, companies with the right mix of brand recognition and adaptable strategy can deliver solid performance.

Unfortunately, not all the news is positive.

Two well respected companies, our House Designs and Leathercraft, have announced they're shutting down.

These closures are significant because both brands have long histories in the furniture world, particularly with leather upholstery.

They were known for craftsmanship and for serving the upper end of the market.

The decision to close highlights just how tough the competitive environment has become, especially for manufacturers without massive scale, rising costs, global competition and shifting consumer buying habits are hitting smaller companies hardest.

For retailers, the takeaway here is to be aware of potential gaps in supply.

Customers who once turned to these brands may now be looking for alternatives, and stores will want to be ready with recommendations that fill that void.

In another closure announcement, 3Z Brands has decided to shutter a mattress factory in Oregon.

3Z owns a portfolio of bedding brands and has been trying to streamline its operations.

Closing a factory is never easy, but it reflects the larger challenges in the bedding sector.

Demand has softened compared to the pandemic years when mattresses were flying out the door as people upgraded their homes.

Add in rising raw material costs and pressure from direct to consumer competitors and traditional manufacturing plants are under real strain.

For retailers, this may mean some adjustments in supply timelines or even product availability in certain regions.

It's another reminder of how volatile the betting category can be and why diversification across multiple vendors often makes sense.

All these business moves, both the growth stories and the closures, connect back to that first point about how people spend their time at home.

Consumer expectations are still changing, and the companies that can adapt are the ones that survive and even thrive.

Millenol is showing what that looks like on the positive side, while the closures illustrate the risks of not being able to scale or pivot quickly enough and circling back to returns for just a moment.

The broader retail trend toward fees could also impact how customers think about their purchases.

If sending something back is going to cost them, they may spend more time upfront choosing the right piece.

That could translate into longer conversations on the sales floor, more demand for design help, or greater interest in trying out furniture in person instead of ordering blindly.

Online retailers who prepare for that shift can turn it into an opportunity, helping customers feel confident in their choices the first time.

Stepping back what ties all these stories together is the constant push and pull between consumer habits and retailer policies and manufacturer realities.

People are using their homes differently, and that's influencing what they buy.

Retailers are adjusting policies like returns to manage costs.

Manufacturers are making hard calls on whether to invest in growth or cut back when markets soften.

Each part of the chain affects the others and staying on top of these connections is what helps professionals make better decisions day to day.

That wraps up today's rundown of the latest news in the furniture industry.

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Thanks for listening and we'll be back soon with more updates to keep you informed.