Welcome to Furniture Industry News.

I'm your host, bringing you the latest updates from across the furniture world on this Monday, August 18, 2025.

Let's dive into what's happening in the industry today.

We're starting with some challenging news that's going to impact many of you working with imported rugs.

As of August 7, tariffs on goods from India jumped to 25%.

But here's the kicker.

In less than two weeks, if nothing changes, those tariffs are set to hit 50%.

This massive increase is being implemented as a penalty because India continues importing Russian oil, part of the US Government's efforts to pressure Russia over the ongoing war in Ukraine.

What does this mean for your business?

Well, some rug manufacturers are already reaching out to customers with updates.

Kasrugs has held their incoming shipments from India, which affects handmade products.

They're hoping for clarity in the coming weeks, but are reminding customers that with pricing increases on the horizon and now might be the time to stock up on popular collections.

Keladi has been absorbing tariffs up until now, but they can't do it anymore.

They're offering no tariff fees on orders placed before August 31, but after that expect a 14% tariff fee through October.

After November 1, they'll make decisions based on whatever the current tariff rate is at that time.

Industry experts are mixed on what this means long term.

Diana Samuels from HRI says the tariffs will likely increase costs for importers, leading to higher prices for consumers and reduced product variety.

This could slow sales growth and put pressure on smaller retailers.

Chad Stark from Stark Carpet puts it bluntly.

At 10%, tariffs were manageable, but at 50%, significant price increases are unavoidable.

For custom focused boutiques with open orders that haven't shipped yet, this extra cost comes straight out of their pocket, potentially wiping out profits overnight.

The good news?

Most manufacturers believe the industry will weather this storm.

Cameron Capell from Capell Rugs thinks the market will eventually stabilize as these costs get passed on to consumers and it becomes the new normal.

It's tough now, but there's hope for a resolution that will reduce the impact on the industry.

Speaking of challenging economic times, let's talk about how consumer financing is becoming absolutely critical for furniture sales in 2025.

Economic uncertainty continues to define much of this year, but one thing is crystal clear.

Consumer financing isn't just a nice to have anymore.

It's a critical driver of sales.

In the home furnishings industry, consumers are leaning on credit, lease to own and alternative financing solutions more than ever to handle the rising costs of big ticket purchases.

Vicky Turjohn from Versatile Credit says the job market remains strong and that's what drives confidence and consumer demand.

After spending freely post pandemic, consumers are now more measured in when and how they make purchases.

Here's what's interesting.

Even higher income shoppers are increasingly exploring near prime and no credit needed offers.

This reflects how complex personal debt profiles have become.

When financing options are clearly communicated upfront, whether through in store signage, kiosks or pre qualification tools, customers feel more empowered and confident to commit.

Ryan Slobodian from Snap Finance echoes this saying financing has become essential, not just nice to have.

Their latest research shows nearly three quarters of small and mid sized retailers are seeing more customers turn to low credit or subprime financing.

About one third of retailers report that financing helps close sales that would otherwise be lost due to consumer hesitation.

The key takeaway here is that single lender models no longer meet today's consumer needs.

As economic conditions tighten and underwriting strategies change, many shoppers are falling out of the prime credit tier.

That's why waterfall financing, which automatically routes applications from prime to near prime to no credit required lenders, has become essential.

Mark Denman from Koalify points out that lease to own doesn't just unlock access, it increases cart size and loyalty.

Nearly 40% of customers said they chose a more expensive or higher quality product because because lease to own was available.

Curtis Howes from Synchrony Home and Auto adds that three out of four shoppers are more likely to buy if financing is available.

The message is flexibility is king.

Retailers who embrace a full spectrum financing strategy not only close more sales but also increase average ticket sizes and foster stronger customer loyalty.

Now let's shift gears and talk about the latest rankings in furniture retail.

Amazon has widened the gap between itself and other companies in the top 25 retailers, broadening its share to 24% and and giving the direct to consumer sector more than one third of the $91.3 billion total.

Amazon was one of just five companies that experienced an increase in furniture, bedding and Accessories sales in 2024.

The others were Walmart, including Sam's Club manufacturer branded retailer Ashley TJX Companies, which includes TJ Maxx, Marshalls Home Goods and HomeSense and Warehouse Club Costco.

The direct to consumer segment rose to almost $38 billion and nearly 36% of the total after Amazon's $22.1 billion.

Wayfair contributed $7.8 billion, Kuwait Retail brought in $1.6 billion and Beyond Inc. Added $1 billion.

Lifestyle stores held onto the second largest share at 15.4%, but this was down from last year.

Williams, Sonoma, Ikea, rh, Crate and Barrel and Our House made up this category, but except for Our House, the others saw drops in sales.

One notable absence from the discount department store category is Big Lots, which began closing stores in 2024 and later re emerged from bankruptcy after an acquisition by Gordon Brothers.

Variety Wholesalers purchased more than 200 big lot stores and is now reopening them but with a reduced furniture selection.

Looking ahead to next year's potential list, the mattress firm and Tempur Sealy deal will likely provide a numbers boost to the bedding specialty category.

The acquisition of Dufresne Spencer Group by Ashley Global Retail will remove DSG from the top 25 while boosting Ashley's numbers.

Before we wrap up, there's an important safety issue you need to know about.

The Consumer Product Safety Commission has announced a recall of 52,100 mattresses sold on Amazon because of a potential fire hazard that could injure or kill users.

The recall involves 10 inch EliteSpace hybrid mattresses made in Taiwan and sold on Amazon from September 2023 through May 2025 for about DOL.

These mattresses violate the requirements of the mandatory mattress standard for flammability, which poses a fire hazard.

They also don't have required labeling.

The 10 inch hybrid mattresses come in full and queen sizes and have a white knit top panel with gray and white side panels.

The agency urges consumers to stop using these mattresses immediately and dispose of them.

The CPSC issued a notice of violation to the Chinese company that sold the products, Elitespace Home, but they have not agreed to recall the mattresses or offer a remedy to consumers.

Finally, let's end with some rebranding news.

Beyond Inc. Is going back to its roots, changing its name and stock ticker to reflect its more well known identity, Bed Bath and beyond.

Effective August 29, the company will change its corporate name to Bed Bath and Beyond Inc. And its stock will trade on the New York Stock Exchange under the symbol bbby.

Marcus Lemonis, executive chairman and principal executive officer, says the name change highlights one of the most valuable pieces of intellectual property that investors and consumers know today.

The company remains focused on growing revenue, achieving profitability and monetizing valuable blockchain assets.

Bed Bath and Beyond has begun its physical retail comeback with the first conversion of a Kirklands home store to a Bed, Bath and Beyond home unit in Nashville in July.

Over the next 24 months, a additional conversions of Kirkland's locations into small to mid size, Bed, Bath and Beyond and Bye Bye Baby stores are planned.

That's all for today's episode of Furniture Industry News.

Thanks for listening and if you found this information valuable, please subscribe to our podcast to stay up to date with all the latest news affecting the furniture industry.