Navigate Pending Market and Economic Shifts in Home Furnishings Retail

The home furnishings industry is entering 2025 with significant changes on the horizon. With economic volatility, global trade fluctuations, and shifting consumer behaviors, the companies that succeed will be those equipped to adapt and innovate. STORIS, as the leading provider of furniture software solutions, empowers retail executives to turn obstacles into opportunities.  

Keen market awareness is a critical attribute needed for technological innovation. As the industry leader, STORIS understands the unique challenges furniture and appliance retailers face, including rising import costs, inflationary pressures, increasing labor expenses, and market consolidation, and how they are reshaping the industry landscape. Our deep understanding of these issues enables us to develop proactive, market-ready solutions that address pain points head-on.  

Factors Affecting Retail in 2025 

Policy changes during the presidential administration transition at the start of 2025 will shape the industry’s next era. The global economy is experiencing significant volatility, impacting various sectors, including home furnishings retail. Partnering with a growth-focused technology provider can support profitability and operational efficiencies. During this transition, executives must find ways to protect margins while meeting evolving customer expectations. 

• Rising Tariffs and Import Costs: Proposed tariffs on imports from key manufacturing countries have the potential to significantly raise costs for retailers and consumers. According to a National Retail Federation (NRF) report, new tariffs on furniture could raise prices by as much as $8.5 billion to $13.1 billion, limiting purchasing power. As these potential changes loom, businesses must reimagine supply chain strategies to remain cost-competitive. These additional expenses can squeeze profit margins if not managed effectively. 
   

• Market Consolidation: The industry is witnessing a trend toward consolidation, with more prominent players expanding their market share. This shift poses a challenge for independent retailers to remain competitive. As Bill McLoughlin from Furniture Today notes, “Companies looking to capture share are increasingly looking to do that by putting innovation in front of the consumer. It’s not just about a battle for the sales floor but instead for share of consumer attention.” For smaller and mid-sized retailers, the key to remaining competitive lies in leveraging technology and innovation to retain existing customers and attract new ones from competitors.  
   

• Consumer Spending Trends: Despite economic challenges, there are bright spots. Holiday spending is predicted to hit or exceed a record $980 billion in the 2024 season, driven by high demand for quality and value, as noted by an NRF holiday spending press release. This trend indicates that, even in turbulent times, customers will invest in products that meet their needs. However, consumers are becoming more discerning, seeking value and quality, which requires retailers to adapt quickly to meet these expectations and presents a powerful opportunity for retailers to differentiate themselves.  
   

• Industry Optimism: Amidst these headwinds, optimism remains strong. A survey conducted by TD Bank at High Point Market revealed that over 80% of retailers are optimistic that their sales will grow or remain steady in the first six months of 2025. Furniture Today reported this, demonstrating resilience and a readiness to invest in growth-oriented strategies.  

Turning Challenges into Growth Opportunities with STORIS 

While these economic factors present hurdles, they also offer opportunities for forward-thinking retailers. By adopting innovative technologies and strategies, businesses can mitigate risks and capitalize on emerging trends.  

Forrester notes that “As retailers brace for a challenging 2025, technology will play a crucial role in offsetting the impact of waning consumer demand on their business.” STORIS equips retailers with tools to set your business apart.  

To stay ahead of the competition, retailers must resist being overly risk-averse and focus on strategic investments that position their businesses for long-term success. There’s no better time than the new year to evaluate opportunities that will drive profitability and ensure your business thrives in the evolving market landscape. Imagine what your business could achieve with an additional $1M added to your annual revenue. That’s the kind of impact STORIS delivers by enhancing profitability, boosting revenue, and scaling innovation. 

Enhancing Profitability in a Tight Economy 

Increasing operational efficiency and reducing costs are paramount to growth. STORIS provides retailers with tools that directly impact their bottom line. 

• Reducing Operational Costs: STORIS’ integrated system automates critical processes such as inventory management, purchasing, and supply chain operations. Automation minimizes manual errors and lowers labor costs, allowing retailers to reallocate resources to revenue-generating activities.  
   

• Insights That Drive Savings: STORIS offers advanced analytical tools that reveal inefficiencies across operations. By addressing these gaps, executives can save money while maintaining the quality their customers expect. 
   

Boosting Revenue with Modern Sales Tools 

Revenue growth is a crucial metric for retail success. Driving sales growth is essential for staying competitive, especially in a consolidating market. STORIS provides solutions that enhance customer experiences to increase conversions. 

• Mobile POS Systems: With STORIS NextGen Mobile POS, retailers can enhance in-store shopping experiences. Streamlined checkout processes increase customer satisfaction, and upselling tools lead to larger transaction sizes. According to global futurist Bernard Marr in Forbes, 2025 is when customer experience will be seen as the key differentiator between companies, making investments in modern POS systems critical. 
   

• eCommerce Integration: Connecting your physical and digital storefronts expands your market reach. Our omnichannel capabilities allow retailers to engage customers wherever they shop, driving higher overall sales. 

Scaling Innovation with Team Expansion 

Recognizing the unique challenges of the current economy, STORIS has made significant investments to support our partners’ growth.  

• Doubling Down on Product Development: We are deeply committed to empowering retailers to navigate market shifts. To this end, we’ve doubled the size of our product management team. This expansion allows us to accelerate the development of cutting-edge features that align with market demands. We’re equipping retailers with the tools they need to adapt quickly. 
   

• Enhanced Client Services: Your success is our mission. We’ve restructured our support team to enhance our ability to provide personalized guidance in specific operational areas. From onboarding to optimization, we’re with our retailers every step of the way. 
   

Empower Your Business for 2025 and Beyond

Thriving in 2025 lies in embracing innovation and strategic partnerships. As you prepare for 2025, consider what your business would look like with streamlined operations, optimized inventory, and a seamless customer experience. With STORIS, this vision becomes reality.  

STORIS is committed to empowering your success through solutions and collaborative services. Let’s unlock your business’s full potential. 

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Sources 
 
Armstrong, Rob. “The Evolution Of The Customer Experience: How To Expand Beyond NPS.” Forbes, 12 Nov. 2024 www.forbes.com/councils/forbescommunicationscouncil/2024/11/12/the-evolution-of-the-customer-experience-how-to-expand-beyond-nps. 
 
“Forrester’s Predictions 2025.” Forrester, 28 Oct. 2024, www.forrester.com/predictions. 

Friedrick, Joanne. “Is It 2025 yet? Retailers Polled at High Point Express Optimism About Sales Next Year.” Furniture Today, 1 Nov. 2024, www.furnituretoday.com/research-and-analysis/is-it-2025-yet-retailers-polled-at-high-point-express-optimism-about-sales-next-year. 
 
McLoughlin, Bill. “The 3 Things That Will Drive Growth in 2025 … if Things Go as Planned.” Furniture Today, 22 Oct. 2024, www.furnituretoday.com/opinion/furniture-everyday/the-3-things-that-will-drive-growth-in-2025-if-things-go-as-planned-bill-mcloughlin. 

National Retail Federation. “Estimated Impacts of Proposed Tariffs on Imports: Apparel, Toys, Furniture, Household Appliances, Footwear and Travel Goods.” NRF, 4 Nov. 2024, nrf.com/research/estimated-impacts-proposed-tariffs-imports-apparel-toys-furniture-household-appliances. 
 
Shearman, J. Craig. “Holiday Spending Still on Track for Steady Growth Amid ‘Mixed Signals’ in Recent Jobs and GDP Data.” NRF, 7 Nov. 2024, nrf.com/media-center/press-releases/holiday-spending-still-track-steady-growth-amid-mixed-signals-recent. 

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