by Big discounts, 0% financing offers made product attainable for many consumers
HIGH POINT — Labor Day proved strong for a number of retailers around the country, as consumers took advantage of huge deals, promotions and financing offers available throughout the holiday weekend — and beyond.
With many sales starting last month and continuing through this weekend, dealers who spoke to Home News Now said the weekend was a good complement to a strong August in foot traffic and written business.
Although tariffs have boosted prices, some store owners and execs interviewed for this story did not attribute the gains to those increases.
Rather, they said, their stores worked hard for the additional business, through a mix of online, TV and mail promotions that brought customers in the doors with big savings on case goods, upholstery and bedding. The goal also was to attract customers in multiple advertising platforms, reflecting a wide mix of shopping patterns.
“It was pretty strong,” said Jeff Godby, owner of Godby Home Furnishings, which has three stores plus a clearance center just northwest of Indianapolis. “And August was up 7.8% overall so it was a pretty strong month. We are in the suburbs of Indianapolis, and it is a very strong furniture market. … We are just blessed to have good lines that people want. It’s just a good mix, so we don’t experience many downturns. It’s a good situation here.”
He also attributed the demand to the strong housing market in the region, including the community of Westfield, which he said is “the fastest-growing town in the Midwest and it is right in our wheelhouse.”
In terms of marketing, he added that the company operated by the same playbook as usual with a mix of TV, direct mail and digital advertising with savings of 15% storewide on top of already big values. It also offered 60-months special financing with no interest until 2030 with a minimum purchase of $4,000.
Michael Faber, president of Memphis-based Royal Furniture, also said the Labor Day was strong with double-digit growth over last year.
“We had a good weekend,” he told Home News Now. “It was an improvement over last year, which was good.”
Driving traffic and sales was a good mix of product and the availability of 0% financing over 60 months with no down payment. The company’s website promoted this offer showing a $1,499 six-piece sectional as an example of the type of product available. Hence, motion furniture was a strong category and driver of business.
The company’s uptick — along with others cited in this story — was for same-store sales. In Royal’s case, it does not include the 14 the company has been adding with the acquisition of former Badcock locations.
“We are in pretty good shape for the year,” Faber said, noting that foot traffic was particularly strong over the holiday weekend. “We are in a good position.”
“I hope it continues and I hope it bodes well for a nice fall and holiday season,” he added. “It is pretty early to predict that, but it was a good jump start into the fall.”
Kyle Johansen, executive vice president at Minneapolis-based HOM Furniture, said the company also had a strong holiday weekend, with sales estimated to be up in the upper single digits. While he did not have an early read on which categories performed the best, he said that customers responded well to the overall mix along with discounts and special financing offered.
Savings of up to 15% were available on already discounted product with tiered savings available on purchases of $499 and up (5%); $1,499 and up (10%) and $3,499 and up (15%). Customers could also take advantage of special financing available through the HOM Furniture/Gabberts Preferred Customer credit card.
Noting that the company also had a strong month in August, Johansen said the company’s strong performance heading into the holiday weekend — and beyond as the sale continues through this weekend — bodes well looking ahead to the fall and balance of the year.
“We are definitely optimistic after this weekend,” he said, adding, “We don’t want to get ahead of ourselves, but it was just a good time for customers to buy, and Labor Day is always a good period for sales.”
On the subject of tariffs, retailers indicated that some slightly elevated pricing was already built into imported product given the previous 10% rates in effect for most countries prior to early last month. But given that many customers don’t shop for furniture even on a yearly basis, many perhaps didn’t notice.
“We have already adjusted a number of prices,” Johansen said, noting that he doesn’t believe this has impacted business or consumer behavior. “A lot of customers don’t necessarily know where prices are or what a bedroom set costs. They haven’t bought a bedroom in 15-20 years.”
However, the company also has a strong mix of domestic upholstery and case goods, which he said has not seen an increase related to tariffs.
Faber, of Royal Furniture, said he doesn’t believe consumers are that attuned to tariffs at this stage.
“The consumers aren’t talking about tariffs, but industry people are,” he said, noting that consumers are still able to take advantage of good values and strong financing offers that make purchase options easier for many shoppers.
David Radcliffe, owner and chief executive officer of Sumner, Washington-based Old Cannery Furniture Warehouse, also said while prices have increased a little because of tariffs, he doesn’t believe it had any big impact on its numbers, which were up over last year, with upholstery driving much of the traffic and written business.
“Our increase is not related to tariffs,” he said, noting, “We haven’t gotten hit too hard on it yet. More than tariffs hitting are these fluctuations in freight rates.”
Driving much of Old Cannery’s traffic was a mix of marketing that included television and digital advertising, both offering aggressive promotions on a broad product mix. The company also had its typical tent sale event in the parking lot, where it gave out 6,500 free hot dogs, including 2,000 each on Saturday and Sunday and 2,500 on Monday, its biggest day.
“We are probably the only retailer in the country that makes a calculation of sales per hot dog,” he said of the free food offering, which it has done for nearly 20 years. “It has very much become a community event.”
He said strong population growth in the region, which is just about 45 minutes south of Seattle, also has been helping fuel business.
“We have a lot of relocations with people moving and buying existing homes,” he said, adding, “And the new housing market comparable to other areas is doing very well, and that is what is giving us a great deal of success right now.”
Gorman’s Home Furnishings & Interior Design in Michigan also reported a strong holiday weekend in terms of traffic and sales. Like other retailers, the company had strong sales during the month of August that continued into the weekend at its three store locations and clearance center.
Among the retailer’s big draws were special promotions offered by American Leather, Caracole and Stressless. It also offered a More You Buy, More You Save event that added additional tiered savings of 6% on one piece, 10% on two pieces and 14% on three pieces or more, adding up to 46%, 50% and 54% when factoring in its typical 40% off sale prices.
This created interest throughout the stores, said John Moray, chief executive officer.
“We had really good traffic and really good sales,” Moray told Home News Now, adding, “It was an across-the-board sort of weekend, which was good. It was nice to see.”
“It really is spurring volume, because you are saving more as you are spending more,” said Melissa Smith, director of marketing, of the More You Buy, More You Save promotion. “That seems to be resonating because these are discounts on top of Gorman’s everyday sales prices. You end up feeling like there is so much more added value.”
Like others interviewed for this story, Gorman’s also worked hard for the business, attracting customers through a multilayered marketing approach that included TV and digital advertising.
“It is just adjusting your spends because obviously consumer habits are changing and their media viewership is changing,” Smith said. “It is about figuring out where those consumers are and meeting them where they are.”
And while there are several months left in the year, Moray and others believe the holiday weekend is a good sign for things moving forward.
“I am optimistic we will have a better last quarter than the rest of the year,” he said, noting that August was particularly strong with a 10% boost in written sales compared with August 2024. “The rest of the year has been kind of up and down.”
Richard Gill, owner of Gill Brothers Furniture & Mattress in Muncie, Indiana, said that the business had a positive Labor Day weekend overall. This was driven by a mix of product, along with a marketing campaign that included direct mail, radio and advertising on Facebook.
Its promotion included savings of up to 60% storewide, a special tax discount on purchases of $1,000 or more and 48 months special financing with approved credit.
“Generally, I would say the year so far has been lackluster, but this Labor Day weekend was surprisingly very good,” Gill said. “We beat our comps to last year, which is a good thing. And right now, we are just hoping the momentum will stick and that we will be able to finish the year strong.
“I am honestly taking a wait-and-see attitude towards it. We are thankful we had a solid August and great Labor Day weekend, but that is just one weekend. It is hard to predict where we are going with this. I do feel that if the Fed does decide to lower rates after their meeting later this month, I think that will start to have an effect, but I don’t know how fast mortgage rates will adjust. It is all a process. Mortgage rates will have to start adjusting and the real estate industry will have to start responding to that. And when does that materially affect us? Early in the first quarter of next year? I am not sure. But we have to be ready at all times to adapt and overcome.”
