Only a week and change into the new year, and it seems like there will be no shortage of massive news stories in 2025 when it comes to politics and global affairs. The home furnishings retail world probably won’t end up on CNN every night, but the industry is sure to have its own drama. Here are some of the major plotlines to keep an eye on in the new year:
Is the RH Bounce Real?
Based on its most recent quarterly numbers, the luxury mountain-climbing retailer seems to be first out of the gate when it comes to a sales recovery. When it reports again in March we’ll find out whether it has legs.
If So, When Can Its Major Upscale Competitors Feel it Too?
We’re still not seeing any of the other upmarket players—Arhaus, Ethan Allen, et al.—share the same kind of rosy revenue news. Are they on the same glide path as RH (just a few lengths behind), or is something else going on out there?
Will Wayfair Continue to Put Up Better Numbers?
It’s still not truly profitable, but there are plenty of signs from the retail giant that black ink is coming soon. If so, it will certainly quiet all the critics who remain skeptical about Wayfair’s business model.
Is the Macy’s Revival on the Right Track?
While fighting off the latest barbarians at its gate, Macy’s still needs to prove its new strategy is the right one. Again, the naysayers are talking a lot of trash in the meantime.
Can Target Get Its Aim Back?
It wasn’t all that long ago that the big discounter was the envy of just about everybody in retail. Now, not so much. This is a critical year for Target to get back on track in merchandising, operations and supply chain management. CEO Brian Cornell’s job is on the line if it doesn’t.
Will Walmart Continue to Take Market Share in Home?
As much as Target regressed, Walmart progressed this past year by doing so many things right—including in the home category, and especially in e-commerce. Will 2025 be the year it pulls away even further?
How Fast Will Off-Pricers Gain Business?
Consumers love them, suppliers figure out a way to do business with them and landlords bring them their best real estate. HomeGoods is now the first choice for many home shoppers, and HomeSense is coming up fast.
Will Outdoor Shopping Centers Continue to Shine?
As physical retail continues to outsmart those who predicted its demise, lifestyle centers and strip malls are the biggest beneficiaries of shoppers who just want to have fun.
Will Beyond/BBB/Overstock Figure it Out this Year?
While de facto CEO Marcus Lemonis continues to use misdirection to disguise the weakness of the core business, we’ll see if this is the year investors and consumers decide they’ve had enough.
Is There a Sleeper Out There in Home Retailing?
At the moment, there isn’t a standout up-and-comer on the horizon. But watch for “fun” retailers like Miniso, Popshelf and Pop Mart to continue to expand and nibble away at the edges of the home sector.
The 2025 ride is just getting started.
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Warren Shoulberg is the former editor in chief for several leading B2B publications. He has been a guest lecturer at the Columbia University Graduate School of Business; received honors from the International Furnishings and Design Association and the Fashion Institute of Technology; and been cited by The Wall Street Journal, The New York Times, The Washington Post, CNN and other media as a leading industry expert. His Retail Watch columns offer deep industry insights on major markets and product categories.
