The Modern Retail Podcast Furniture tariffs, luxury shopping vacations and how consumers spent this summer
Aug 30, 2025
Sonia Lapinsky, an expert at Alix Partners with 20 years in retail consulting, shares insights on this summer's consumer spending. She discusses the rising trend of luxury shopping vacations in Europe and the impact of potential furniture tariffs on U.S. brands. Lapinsky explains how inflation has led shoppers to be more deliberate in their purchases, balancing brand loyalty with price sensitivity. She advises brands on adapting strategies in a market full of uncertainty and high costs, emphasizing the importance of understanding fickle consumer behavior.
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Furniture Tariff Uncertainty Looms
- President Trump signaled potential higher tariffs on furniture, creating uncertainty for brands that import from China, Vietnam and others.
- Brands are adopting a wait-and-see approach because policy details and scope (finished goods vs components) remain unclear.
Importers Face Bigger Tariff Risk
- Wayfair and other import-heavy retailers face outsized risk from new furniture tariffs and their stock reacted immediately to the announcement.
- Domestic manufacturers like La-Z-Boy and Ethan Allen may be relatively insulated and saw no similar stock drops.
Tariffs Add To Existing Furniture Headwinds
- The furniture industry already faces headwinds from a stagnant housing market and pulled-forward pandemic demand.
- Additional tariffs and component duties (steel, lumber) compound cost pressures even for brands shifting production.