蘑菇AV

The insight: The US is mired in the 鈥渨orst housing market in almost 50 years,鈥� RH CEO Gary Friedman said during the company鈥檚 Q1 earnings call, as high housing costs and economic uncertainty chill demand. Our take: With the sluggish housing market showing few signs of improvement, retailers must lean into any pockets of opportunity they find. For RH, that鈥檚 burnishing its luxury credentials and pushing deeper into hospitality, while Wayfair is leaning on its diverse supplier base. The resilient pro market is another area companies should look to take advantage of as they try to ride out the downturn.

The news: Weaker-than-expected travel demand is driving JetBlue Airways to launch cost-cutting measures, including eliminating underperforming routes, ending service in some cities, halting nonessential aircraft refreshes, and restructuring its leadership team, per Bloomberg. Our take: Macro uncertainty is compounding the pressures on already struggling companies鈥攚hether it鈥檚 JetBlue, auto parts maker Marelli, or home furnishings retailer At Home鈥攁s each grapples with weakened demand, rising costs, and limited financial flexibility.

Lowe鈥檚 projects flat to 1% comparable sales growth, while Home Depot forecasts a 1% increase. However, high interest rates and soaring home values have priced out many buyers and slowed demand for big-ticket items like furniture, appliances, and renovations. Companies that rely heavily on homebuying activity, like Wayfair, feel the squeeze. Trump is adding to the uncertainty.

Retail sales rose 5.2% YoY in April: But the gains mask a tough climate as consumers pulled forward purchases of tariff-sensitive items like home goods.

High borrowing costs have also caused consumers to defer pricey home improvement projects like kitchen and bath remodels, creating a tough environment for home improvement retailers and those in other housing-adjacent categories such as furniture and appliances.

This deck provides an in-depth analysis of the home furnishings sector in ecommerce, including forecasts for sales growth, digital ad spending, and KPIs. It also highlights consumer shopping behaviors, spending trends, and the growing influence of social media.

There鈥檚 evidence the approach is working: Wayfair鈥檚 sales in Illinois grew over 15% faster than the US overall from the late May 2024 store launch through year-end. Beyond brand visibility, these locations give consumers the opportunity to touch and feel Wayfair鈥檚 products before making a purchase, a crucial advantage for high-ticket furniture and housewares.

High-income consumers are more likely to discover new brands or products in-store, but they typically make the final purchase online.