Furniture Stores NAICS 449110

Nov 20, 2025 - Furniture Retailers Show Weakness in October

• According to the CNBC/NRF Retail Monitor, furniture and home furnishings stores lagged behind broader retail gains in October 2025, missing the seasonal sales bounce. Core retail sales rose 0.6% month over month and 4.89% year over year, reflecting solid consumer spending supported by wage growth and low unemployment. However, furniture and home furnishings stores posted a 0.08% monthly decline (seasonally adjusted) and a 1.7% annual drop (unadjusted), making them one of only two categories to contract. Building and garden supply stores also fell, down 0.81% month over month and 8.52% year over year. In contrast, categories such as clothing (7.8% year over year), electronics (6.5% year over year), and digital products (22.3% year over year) saw strong growth. For the first ten months of 2025, core retail sales were up 5.28%, and the NRF projects holiday sales to rise 3.7%–4.2% to just over $1 trillion. The data, based on Affinity Solutions’ anonymized card transactions, highlights competitive pressures facing furniture retailers.
• US consumer sentiment weakened in October and November 2025, raising concerns for furniture retailers that depend on discretionary household spending. The University of Michigan’s Index of Consumer Sentiment fell 6.2% month over month to 50.3 in November, nearly 30% below last year, while the Expectations Index dropped 36.3% annually to 49. Inflation expectations rose to 4.7% for the year ahead, and the Conference Board’s Consumer Confidence Index slipped to 94.6 in October, with short term expectations down to 71.5 despite stronger current conditions. With more than half of consumers anticipating higher interest rates, households are expected to delay or scale back big ticket purchases such as sofas, dining sets, and bedroom furniture. For furniture stores, this environment points to softer demand, heightened price sensitivity, and increased reliance on promotions to drive sales. At the same time, value oriented retailers may benefit as consumers trade down from premium outlets, intensifying competition and margin pressures across the sector.

• According to Furniture Today, the Q3 2025 Home Furnishings Sentiment Index fell to a record low of 38, reflecting widespread concern among furniture retailers and manufacturers about current business conditions. Sales, employment, and capital spending sentiment all declined, with 74% of respondents rating the present climate as fair or poor. However, longer-term optimism remains. Expectations for business conditions over the next six months rose to an index score of 95, while employment and investment outlooks also improved. Consumer demand sentiment rebounded 18 points quarter over quarter to 88, signaling cautious confidence. Tariffs, housing market trends, and consumer sentiment remain top concerns, while supply chain and inflation worries eased slightly. Businesses must navigate economic headwinds while preparing for renewed demand, making strategic planning and agility essential for sustained growth.
• Furniture stores may benefit from an expected 5% increase in dorm/apartment furnishings spending in 2025, reaching $12.8 billion, according to an annual back-to-college spending survey by the National Retail Federation and Prosper Insights and Analytics in Home Furnishings News. In addition to dorm or apartment furnishings, the other top back-to-campus spending categories were electronics, clothing and accessories, food, and personal care items. Total back-to-college spending is expected to reach $88.8 billion in 2025, up from $86.6 billion a year ago. While overall spending is on the rise, the per-person spending for back-to-college fell to an average of $1,325 from $1,364 in 2024, which can be attributed to higher-income households continuing to spend while lower-income households cut back across categories due to economic uncertainty. College-bound families are making budget-minded choices, such as buying used or refurbished items and using buy now or pay later services.