by While macro headwinds linger, retailers report strong traffic and a surprising appetite for premium goods over bargain hunting
The last couple of traditional selling holidays in the furnishings industry — Memorial Day and Fourth of July — were mostly flat to down, although there have been certain bright spots over the months. After the Fourth of July, I wrote that noticeably few retailers were willing to discuss their holiday results, which made it hard to draw broader conclusions about the marketplace. But a few trends were consistent: Intentional purchasing was up, and the market is increasingly bifurcated between those seeking value and those seeking premium products.
After Labor Day, both trends seem to be holding. But in a welcome turn of events, it seems that Labor Day outcomes were a pleasant surprise, based on the retailers I spoke with. There was strong performance in the motion category and an unexpected increase in foot traffic. Premium products are winning and more simplified advertising messaging seems to be a successful strategy to connect with cautious consumers. Although this analysis represents only a handful of retailers in the U.S., it is intended to offer a glimpse into the market.
Povison, known for fully assembled furniture mainly available online and at its flagship store in Los Angeles, ran a sitewide spend-and-save with limited-time discounts on select pieces. According to the retailer, its sales were up 300% over the same period in 2025.
A statement from the retailer read: “Customers are increasingly gravitating toward midpriced and premium tiers. As brand trust and category depth grow, more customers are trading up to higher-priced pieces, buying multiple items at once, or returning for repeat purchases of the products they need.”
Povision’s strongest sales for its Labor Day promotional period were its electric sofa beds, power sofas (motorized luxury sofas) which range in price from $2,500 to $4,000, and media consoles, which range from $1,500 to $2,500.
At Jacksonville Bedding Mattresses & More in Jacksonville, Florida, owner RJ Williams said he tried to keep the Labor Day promotion straightforward with a save up to 50% offer on core brands.
“We really tried not to overcomplicate the message this year,” he said.
The retailer, which has two locations, finished the weekend up 141% over last year, which he said exceeded his expectations. Mattresses and adjustable bases led the weekend, and pillow sales were stronger than the previous year. Williams said their average ticket was “phenomenal.” According to Williams, better-than-midrange products and luxury products were front-runners.
“Customers were willing to invest in better sleep rather than simply shop for the lowest price,” he said.
He believes his Labor Day weekend results were affected by two things. “It was a rainy weekend, and that always helps get people inside,” Williams said. “I’m honestly very pleasantly surprised by both the traffic and the numbers this year. I think having a tighter, more cohesive marketing message made a difference, along with our product mix. For us, a strong DTC presence paired with legacy anchor brands still seems to be the right mix.”
Simplified messaging was also a hit at HOM Furniture, based in Coon Rapids, Minnesota. The retailer has 18 locations in Minnesota, Wisconsin, Iowa, North Dakota and South Dakota.
HOM Furniture ran up to 15% off the HOM price, plus three-year special financing with no minimum purchase at 9.99% APR. The retailer also offered 12 months interest-free financing.
Executive Vice President Kyle Johansen said HOM’s 15% off discount is the largest one the retailer offers all year, so he said their loyal customers know it’s a good time to buy from them.
Johansen said that the retailer was up on a same-store basis over Labor Day 2025 by single digits. Mattresses and leather motion were the company’s strongest categories.
Johansen said HOM Furniture offered some special buys on lower-priced items. However, he said that the lower-priced goods underperformed their expectations, while the premium goods in HOM’s showrooms performed better than expected, especially premium mattresses.
Johansen said he and his team, like Williams, were surprised to see increased traffic in the stores.
“We felt we underperformed slightly relative to our traffic increase, but many of our stores reported back that customers ‘were really shopping around’ to make a decision,” Johansen added.
He hesitated to extrapolate what the company’s Labor Day results — although positive — mean heading into the rest of the year, because of the variety of macroeconomic situations occurring that are influencing business, including the Iran war, fuel prices, the Federal Reserve raising short term rates from 3.75% to 4% on Sept. 16, and the upcoming elections.
“I remain cautiously optimistic going into the fourth quarter; usually, October and November are pretty good months for us and our industry,” Johansen said.
Johansen’s cautious outlook is mirrored by broader economic indicators tracking consumer behavior. On Sept. 16, the U.S. Census Bureau released its Monthly Retail Trade Report for August. Following a larger-than-expected drop in June, August bounced back, increasing by 1.2%. It seems that momentum, at least anecdotally so far, carried into Labor Day.
According to the Census Bureau report, furniture and home furnishings store sales increased 0.9% in August. Year-over-year sales stayed in positive territory, rising 1.9% over last August, which West attributes to baseline price adjustments and back-to-college move-in demand.
West said he expects retail spending to continue growing through September and October as consumers keep finding ways to spend and retailers move aggressively to get holiday inventory in front of shoppers earlier.
“Retailers pushed their peak shipping windows into September, leaving distribution hubs and shelves well-stocked for the holidays and fueling competitive early discounts,” West said. “Meanwhile, high energy costs and sticky inflation continue to strain household finances. In response, shoppers are increasingly opting for store brands, postponing major nonessential purchases and holding out for seasonal promotions.”
It seems that based on the retailers I heard from, the value category seems to be losing a bit of momentum while the premium end continues to tick up. While macroeconomic pressures like inflation and shifting interest rates are forcing consumers to be more deliberate with their wallets, the resilience of premium tiers and strong core categories shows that shoppers are still willing to spend. As the industry looks toward the crucial Q4 2026 holiday stretch, retailers who balance clear marketing with the right mix of trusted anchor brands and high-end options will likely be best positioned to capture that momentum.
