Furniture Industry News

Episode Highlights: November Retail Performance Retail sales (excluding automobiles and gas) grew by 2.35% YoY. Online sales surged 21.48%, while furniture and home furnishings stores saw a slight decline (-1.15% YoY). National Retail Federation projects 2.5%-3.5% growth for the November-December period, supported by lower retail prices driving higher item volume. Holiday Shopping Insights Over 197 million shoppers participated during Thanksgiving-Cyber Monday, exceeding projections. NFM reported record Black Friday sales across furniture, appliances, flooring, and electronics. Steinhafels achieved a 40% increase in sales, driven by new stores and financing options. Creative promotions from smaller retailers like Sell A Cow and strong online results from BoConcept underscored industry momentum. Tariffs and Supply Chain Strategies Anticipation of new tariffs is driving furniture production out of China to Vietnam and Indonesia. Concerns about potential tariffs on Mexican and Vietnamese imports are fueling diversification strategies. Domestic manufacturing remains a challenge due to environmental and labor considerations. Earnings Reports Overview Macy's Q3 sales declined 2.4%, with growth in luxury segments (Bloomingdale’s: +1.4%; Bluemercury: +3.2%). Store optimization efforts to close 65 locations in 2024, aiming for stronger performance by late 2025. Hooker Furnishings saw a 10.7% sales drop but reported growth in its Sunset West division (+9.1%). Strategic inventory increases and expedited product launches highlight preparation for 2025. Key Takeaways: Holiday momentum signals optimism for 2025, with strong Black Friday sales benefiting many furniture retailers. Tariff uncertainties are reshaping global supply chains, with companies prioritizing diversification and contingency planning. Earnings results reveal resilience in certain sectors (luxury retail, outdoor furniture) despite broader challenges. Stay Updated: Subscribe to Furniture Industry News for weekly insights into market trends, retail performance, and industry strategies. Thank you for listening!

Episode Highlights: East Coast Port Strike Looms Potential strike deadline set for January 15th. Key dispute: Automation vs. job security, focusing on semi-automated rail-mounted gantry cranes. National Retail Federation urges negotiation, emphasizing supply chain risks. Impacts from the October strike still affect retailers, with contingency plans underway. Retail Sales Trends Stationary Upholstery: Top-performing category, now 23% of sales (up from 20%). Bedding: Steady second place, holding 17% of total sales. Motion Upholstery: Gains traction, contributing 15% of sales; 20% of retailers report over 3% growth. Master Bedroom Furniture: Declines sharply, with a drop in share from 10% to 8%. Corporate and Manufacturing Updates American Freight Closure: Parent company Franchise Group's Chapter 11 bankruptcy leads to headquarters closure in Delaware, Ohio, by February 2025, affecting 62 employees. Ashley Furniture Expansion: Over $2 billion invested in U.S. manufacturing since 2017. New $80 million expansion in Mississippi solidifies commitment to domestic production. 2025 Design Trends Wayfair Professional Forecast: Five key directions: Joyful Expression: Bold colors and playful designs. Restorative Realms: Sustainable materials and serene aesthetics. Classics Revisited: Modern spins on traditional styles. Moody Sophistication: Rich textures and tones. New Wave Futurism: Metallic and iridescent finishes. Industry Outlook Companies brace for inflation and supply chain challenges. Diversification of production locations, particularly in Southeast Asia, to offset tariff risks. Investments in automation and flexible manufacturing underscore resilience strategies. Key Takeaways: Retailers are shifting inventory strategies to meet consumer demand for stationary sofas and sectionals. The industry remains cautiously optimistic for 2025, with strategic investments and trend-driven designs shaping future growth. Stay Updated: Subscribe to Furniture Industry News for the latest market updates, expert insights, and trend forecasts.

Welcome to the latest episode of Furniture Industry News, where we bring you essential updates shaping the furniture market. In this episode, we cover: Retail Trends: Thanksgiving Weekend Highlights Holiday Shopping Boom: 207 million Americans (79% of U.S. adults) shopped over Thanksgiving weekend, up from 75% last year. In-store sales remain crucial: 78% of consumers either purchased in-store or used pickup services. 70% made additional purchases while picking up online orders. Top shopping days: Black Friday: 39% of purchases. Cyber Monday: 19%. Looking ahead: 60% of shoppers still have holiday purchases pending. Shipping News: Container Rates Drop Amid Looming Challenges Current trends: Rates from Shanghai to Los Angeles dropped 12%, now $3,719 per 40-ft container. Favorable rates driven by global fluctuations. Future pressures: Potential International Longshoremen's Association port strike in January 2025. Possible new tariffs may cause businesses to frontload shipments. Experts predict rates could rise significantly in early 2025. TikTok’s Legal Challenges: Implications for Furniture Marketing A federal court upheld legislation requiring ByteDance, TikTok's Chinese parent company, to sell its U.S. stake by January 19, 2025. If no sale occurs, TikTok may face a U.S. ban. Businesses relying on TikTok’s 170M U.S. user base should prepare alternative strategies. TikTok may appeal, but uncertainty looms, with a potential 90-day extension for active negotiations. Company News: Wayfair and Hooker Furnishings in Focus Wayfair: Reports market share gains despite a challenging industry environment. Strategic priorities include: New rewards program. Enhanced delivery options. Expansion of Wayfair Professional (B2B). Hooker Furnishings: Reports a $7.3M operating loss in Q3, driven by: Layoff-related severance costs. Bankruptcy of a key customer. Positive outlook: Progress on cost-saving initiatives expected to save $10M annually by 2026. Home Meridian division posted its highest-ever gross margin (20.5%). Optimism for improvement with cooling inflation and interest rate trends. Thank you for tuning in! Stay updated by subscribing to Furniture Industry News.

Furniture Industry News – December 4th, 2023 Highlights: Holiday Shopping Surprises: Nearly 197 million consumers shopped during Thanksgiving weekend, exceeding projections despite a slight drop from last year. Holiday spending is forecasted to hit $979–$989 billion, marking a 2.5–3.5% increase over 2022. Mixed Furniture Order Trends: While September orders declined 9% year-over-year, there’s a 5% month-over-month increase, signaling potential stabilization. Shipments are down, but backlogs are slightly improving. North Carolina Manufacturing Closures: MasterBrand is closing two facilities in 2025, impacting 274 workers. Support measures include severance pay, benefit assistance, and relocation opportunities. Sale-Leaseback Strategies on the Rise: Companies are using this financial approach to access capital, improve balance sheets, and maintain operational control amid economic challenges. In-Depth Updates: 1. Holiday Shopping Outpaces Projections Record-Breaking Stats: 197 million shoppers surpassed the 183.4 million forecast. Black Friday Dominance: 81.7 million in-store and 87.3 million online shoppers led spending, with average per-person spending reaching $235. Industry Insight: A robust holiday season reflects consumer resilience despite economic pressures. 2. Furniture Order Trends Declines & Stabilization: Orders fell 9% year-over-year in September, continuing a downtrend since May. Month-over-month, orders rose 5%, indicating gradual improvement. Economic Indicators: Consumer confidence and existing-home sales are gaining traction. Federal Reserve's recent interest rate cuts could spur further industry recovery. 3. North Carolina Manufacturing Closures MasterBrand's Announcement: Closure of Dura Supreme (Statesville) and Norcraft (Liberty) facilities in 2025. 74 employees affected in Statesville (closing January 20th). 200 workers impacted in Liberty (closing May 22nd). Support Measures: Transition assistance, severance pay, and relocation options to Kinston facility. Closures underscore shifts in the cabinet manufacturing sector and local economies. 4. Sale-Leaseback Transactions Gaining Momentum How It Works: Companies sell their facilities to investors and lease them back, unlocking real estate value without losing operational control. Key Benefits: Immediate access to full property value. Improved balance sheets and reduced debt. Fully tax-deductible lease payments. Example Impact: A $20M facility sold for $30M provides substantial capital while preserving operational continuity.

This episode covers the latest developments in the furniture industry, including tariff threats, market trends, retail shifts, and cutting-edge technology reshaping the way we do business. Top News Stories Tariff Threats Impacting the Furniture Market Proposed 100% Tariffs on BRICS Nations: Former President Trump has issued a major tariff threat targeting nine BRICS nations, including China and India, key players in furniture exports to the U.S. China: $4.6 billion in exports to the U.S. (Jan–Sept 2024). India: $345.9 million in exports, gaining traction as a sourcing hub. Additional Tariffs on North American Partners: Proposed 25% tariff on Mexico and Canada. Extra 10% on Chinese imports. Industry Impacts: Import-heavy retailers may reconsider sourcing strategies. Domestic manufacturers view potential tariffs as an opportunity to strengthen their market position. Case Goods Segment Outlook for 2025 Challenges: The case goods segment remains tied to the struggling housing market but shows cautious optimism due to falling interest rates. Emerging Trends: Increased consumer demand for customization driven by post-pandemic behaviors. Domestic manufacturers experiencing rising interest in American-made products. Industry Sentiment: "Survive to late 2025" mentality, with executives expecting gradual improvements in the market. Retail Trends: Black Friday & Cyber Week Insights In-Store Declines: Physical store visits fell 3.2% on Black Friday and 0.8% on Saturday. Home sector experienced a sharper decline (4.1% and 5.8%, respectively). Online Growth: Global Black Friday online spending rose to $74.4 billion (+5% YoY). Furniture category saw a 4% increase in online sales but a slight 1% dip in order volume. Average Purchase Values: $394 during Cyber Week. $449 on Black Friday. Discounts remained modest at 19% compared to the retail average of 27%. Consumer Preferences: Mobile Dominance: 74% of furniture shopping traffic via mobile devices (+13% YoY). 41% increase in digital wallet usage for purchases. Technological Innovations in 2024 AI and Imaging Solutions: Photorealistic renderings now created in minutes. Major efficiency gains for product visualization. Augmented Reality (AR): Helps customers virtually place furniture in their homes for precise visualization. Widely adopted by major retailers, e.g., Crate & Barrel. Virtual Reality (VR): Immersive shopping experiences using devices like Apple’s Vision Pro. Real-time customization for fabrics, finishes, and dimensions. Customization Advancements: 3D platforms simplify customer-specified fabric visualization, streamlining the custom-order process. Stay ahead of the curve with Furniture Industry News. Subscribe for regular updates on trends, market developments, and innovation shaping the industry. Until next time, stay informed and keep building success in the furniture industry.