International Expansion and Showroom Openings
The Closing of a Chapter For Many
One of the most significant developments in the furniture industry as of June 2025 is theimpending closure of Progressive Furniture, a budget-friendly brand sold at major retailers likeTarget and Walmart. The company announced it will cease operations by the end of the year,resulting in approximately 30 employee layoffs. This decision follows the loss of its primarysupplier in Mexico, which had provided 60% of its products, and mounting challenges related torising import tariffs and supply chain disruptions. Progressive Furniture, a subsidiary of SauderWoodworking, has struggled to maintain low production costs amidst these pressures. Despitethe closure announcement, the company has committed to fulfilling all existing orders andhonoring warranties until it ceases operations at its Claremont, North Carolina, distributioncenter by year-end.This closure underscores the broader challenges facing the U.S. furniture industry, particularlyfor companies reliant on international supply chains. Newly imposed import tariffs under thecurrent administration have led to significant cost increases for materials such as aluminum,steel, and lumber, with some tariffs reaching up to 250%. These policies have disrupted supplychains and diminished profit margins, prompting designers and manufacturers to adopt adaptivestrategies like sourcing locally and revising client proposals.In contrast, companies like Ethan Allen, which manufacture a significant portion of theirproducts in North America, have been somewhat insulated from these tariff impacts. However,they still face challenges due to consumer caution amid trade uncertainties and a sluggishhousing market. Ethan Allen has announced a 4.5% price increase amid competitive pressures,while rivals more reliant on Chinese imports are implementing steeper hikes.Overall, the furniture industry is navigating a complex landscape of economic and regulatoryuncertainties, with companies adopting various strategies to maintain quality and managebudgets in the face of rising costs and supply chain disruptions.
Design Trends and Consumer Preferences
Technological Advancements and Smart Furniture
Market Growth and Sustainability Trends
� Retailers Facing Financial Challenges
� Technological Advancements and Industry Challenges
Furniture industry leaders are addressing technology challenges in omni-channel retail. Apanel discussion highlighted the complexities of data management and the lack ofstandardization across digital systems used by retailers and manufacturers. Industryexperts emphasized the importance of early alignment between manufacturers andretailers when selecting technology partners to streamline systems integration and avoidfuture complications.