INDUSTRY REPORT
Furniture market resilience in Q2 2025
Q2 2025 for the Furniture industry presents a stark contrast to broader ecommerce trends. While most sectors showed inventory growth and sales resilience, Furniture experienced significant contraction. The data reveals a sector in the midst of strategic realignment, with brands focusing on margin improvement despite declining sales volumes.
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Key takeaways
- Aggressive inventory reduction strategy successfully implemented - Q2 saw Furniture inventory levels decline 41.4% year-over-year, the only category to reduce inventory
- Sales volumes down but profitability metrics improved - Sales declined 27.9% year-over-year while unit margins reached 18-month highs
- Traffic declined significantly - Glance views fell 37% year-over-year, reflecting reduced consumer interest or deliberate traffic reduction strategies
- Advertising efficiency prioritized over volume - Ad spend declined 24.7% year-over-year as brands focused on higher-margin sales
- Supply chain improvements yielded results - Revenue loss due to out-of-stock issues declined 33.5%, showing improved inventory management
- Higher prices didn't deter remaining customers - Average selling prices increased 2.8% despite industry-wide price sensitivity in other categories
