Retailers are grappling with the potential and current impacts of tariffs on imported furniture, with opinions on how to navigate the situation varying across the industry. Sarah Pelton from Cambridge Retail Advisors stresses the importance of "agility" for smaller businesses, advising them to diversify suppliers, model margin impacts, and rethink fulfilment strategies. She encourages retailers to plan for different scenarios, considering the possibility of tariffs staying in place or changing over time.
Star Furniture, part of Berkshire Hathaway's furniture division, is adopting a "strategic approach" in response to the tariffs, working with partners to share the burden while also diversifying its supplier base. The company highlights the importance of pricing strategies and selecting suppliers who can balance increased costs.
For businesses like LaDiff in Richmond, Va., the new tariffs, particularly the 20% tariff on EU products and the sharp increases on imports from Vietnam and China, are seen as significant hurdles. 'The price increases we are about to start seeing are going to be painful,' said Sarah Paxton, co-owner of LaDiff.
City Furniture's CEO Andrew Koenig explained that his company has built a "diverse global supply chain," including US-based manufacturing, which gives them more flexibility in response to tariff changes.
Meanwhile, some vendors remain in a "wait and see" mode, hoping for a clearer picture. Tim Harris, owner of Knoxville Wholesale Furniture, believes the tariffs are a negotiation tactic, suggesting that once relief is offered, it will be reciprocated.
As the retail industry faces these challenges, flexible business models and strategic sourcing will be crucial to managing the impacts of ongoing tariff uncertainty.
Source: www.furnituretoday.com