Consumer Confidence in the Furniture Sector. An Alarming Decline

Originally published March 26, 2025. This version was rebuilt from The Conference Board, Macy's annual report and Wayfair's announcement for the FIN archive, and the facts are as of that date.

Late March 2025 brought the clearest warning yet on consumer confidence. Department store results and a new trust program at the largest online furniture seller showed retailers responding to wary shoppers.

The short version

• The Conference Board's Expectations Index fell 9.6 points to 65.2, the lowest in 12 years.
• Macy's reported Home/Other sales of $3,381 million in 2024, down from $3,793 million.
• Wayfair launched Wayfair Verified, a seal for products hand tested by its specialists.

Expectations hit a 12-year low

The Conference Board's Consumer Confidence Index fell 7.2 points to 92.9 in March. The Expectations Index dropped 9.6 points to 65.2, its lowest level in 12 years and well below the reading of 80 that usually signals a recession.

Average 12-month inflation expectations rose from 5.8% in February to 6.2% in March, and the Board noted concern about prices for staples and the impact of tariffs. When households expect higher prices and weaker income, furniture is one of the first purchases they put off.

Department store home slides

Macy's annual report showed Home/Other sales of $3,381 million in fiscal 2024, down from $3,793 million in 2023 and $4,199 million in 2022. The category also includes restaurant sales and some accounting items, but the trend matches the wider pullback in home goods.

Department stores have been shrinking furniture and home assortments, which leaves more of those customers for specialty and online furniture retailers if they can earn their trust.

Wayfair bets on trust

On March 25 Wayfair launched Wayfair Verified, a seal for products its specialists inspect and hand test for comfort, material feel, stability and overall satisfaction. The company said the goal was to help shoppers outfit their homes with confidence online.

Quality signals matter more when shoppers are anxious. A buyer worried about money is less willing to gamble on a sofa they cannot sit on first.

An alarming decline

Confidence fell sharply in March, and the biggest retailers were already adjusting. The furniture sellers best placed for 2025 were those that could reassure cautious buyers on both price and quality.

Related on FIN

• Furniture Shoppers Are Holding Back
• Furniture Showrooms Run on Morale

Sources

• The Conference Board, Consumer Confidence Index, March 2025
• Macy's, Inc., Annual report on Form 10-K for fiscal 2024
• Wayfair, Wayfair Verified launch (Mar. 25, 2025)