Furniture Store Sales Fell 2.7%. Every Other Category Grew.

Furniture Store Sales Fell 2.7%. Every Other Category Grew.

Furniture and home furnishings stores were the only retail category with lower sales than a year ago in September. Plus: Haynes and The Dump are closing all 12 stores.

Today's big number is 2.7%. That's how much September sales at furniture and home furnishings stores fell from a year earlier, per the CNBC/NRF Retail Monitor. Every other retail category grew. The drop is getting smaller, but furniture is still the one category in the red. Here's what you need to know.

In today's briefing:

Furniture stores: September sales down 2.7% from a year ago, the only retail category that fell
Haynes and The Dump: all 12 stores closing, with $100M of merchandise going out in closing sales
Tariff refunds: A court ruled every importer can get refunds, not just the ones who sued. About $30B could still be held up if Customs' refund system stalls.
Wholesale: furniture distributors' August dollar sales up 22.8%, with less stock on hand
Kirkland's / Container Store / Bed Bath & Beyond owner: CFO out, exiting several dozen locations by year-end
Freight: West Coast container rates dipped again as peak season wraps up
Correction: Southern Motion's final financing hearing moved to Oct 20

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Retail Sales

Furniture was the only retail category that sold less than last year.

The CNBC/NRF Retail Monitor, released Oct 8, puts September sales at furniture and home furnishings stores at $12.4B, down 2.7% from a year ago and flat with August. Total retail, not counting cars and gas, rose about 4%. NRF CEO Matthew Shay said households are putting essentials first as gas takes a bigger bite, and retailers are leaning on promotions and value pricing.

One caution: NRF changed how it builds this report this month, so the new numbers don't line up with its older reports or with Census. Compare September only to June through August in the same report.

Housing isn't helping. Freddie Mac's 30-year mortgage rate hit 7.40% on Oct 8, its 7th straight weekly rise and the highest since November 2023.

The details:

Furniture and home furnishings stores: $12.4B in September, down 2.7% from a year ago
Trend: down 3.5% in June, 3.2% in July, 2.8% in August, 2.7% in September
Total retail (not counting cars and gas): up about 4%, its 12th straight month of growth

Why it matters:

The gap is closing, but slowly. Don't build Q4 open-to-buy around a turnaround this data doesn't show yet.
Shoppers are spending, just not on furniture first. Give them a reason to buy now: clear value, in-stock pieces and simple financing.
Fewer home moves means fewer furnish-the-new-place tickets. Work the customers already in their homes.

In case you missed it: Last Sunday's editorial walked through freight's new playbook, and if you haven't read it yet, here's the article. It's a must-read for anyone who ships product by container. And don't miss Part Two this Sunday. It connects your freight bill to something most people in this industry would never guess, and it's the one you'll want to forward to your whole team.

Store Closings

Haynes and The Dump are closing all 12 stores.

The Virginia Beach family company behind Haynes Furniture and The Dump Luxe Furniture Outlet announced it is closing both chains for good, in a release issued through liquidator SB360 Capital Partners, which is running the going-out-of-business sales that started Oct 8. The company called it a family retirement after 128 years. No bankruptcy was mentioned, and the company didn't say how many jobs are affected.

The details:

Haynes: 4 stores in Virginia
The Dump: 8 stores in Arizona, Georgia, Illinois, Texas and Virginia
Merchandise: The Dump says its sale features $100M in retail-value furniture, mattresses and rugs

Why it matters:

If you sell in Richmond, Hampton Roads, Houston, Dallas-Fort Worth, the Chicago suburbs, Atlanta or Phoenix, expect deep closeout pricing through the holidays. Hold your value story instead of chasing every markdown.
Vendors with open orders or consignment goods at either chain should check their exposure now.

Tariff Refunds

Importers who never sued are now part of the refund case.

On Oct 8, the U.S. Court of International Trade certified a class in Freestyle World v. CBP covering every importer that paid IEEPA duties from Feb 1, 2025 through Feb 19, 2026, except those who filed their own suits. There's no sign-up and no opt-out. The court said some importers, mostly small ones, haven't used CBP's refund system, and the system can't take some entries yet, including finally liquidated ones.

CBP puts IEEPA duties collected at about $166B. As of Oct 2, about $126B in refunds with interest had gone to Treasury for payment, per CBP's Oct 6 report to the court. The court estimates about $30B would still be stuck if the refund system stopped today. CBP also told the court a third phase of the system went live Oct 6.

Why it matters:

If you paid IEEPA duties and didn't sue, you're in the class by default. That doesn't pay you by itself. Keep your bank details and broker filings current.
Ask your customs broker which of your entries the refund system can't process yet.

Wholesale

Distributors sold more furniture dollars in August, with less stock on hand.

Census says August sales at furniture and home furnishings wholesalers hit $10.8B, up 22.8% from a year ago. Inventories were 2.1% lower. These are dollar sales, not adjusted for prices, so higher tariff-era prices likely account for part of the jump.

Why it matters:

Wholesale dollars are up while store sales are down. Lean distributor stock says retailers are buying closer to need. Confirm your key vendors can fill fast reorders before the holidays.

Retail Exits

The owner of Kirkland's, The Container Store, Bed Bath & Beyond and Overstock is closing several dozen locations.

In an Oct 5 SEC filing, the parent company, Neighborhood Intelligence, said its CFO resigned and named an Alvarez & Marsal managing director as interim CFO. It also said it "has begun exiting several dozen locations," done by year-end, without naming chains or stores.

Why it matters:

Expect more clearance on décor, storage and accent furniture into the holidays. If you sell those near their stores, set your price points now.

Freight

West Coast container rates eased again as peak season wraps up.

Drewry put Shanghai to Los Angeles at $7,624 per 40-foot container on Oct 8, down 3% from the week before. NRF's Global Port Tracker says the import peak is wrapping up and most holiday goods have arrived.

Why it matters:

Softer rates give you room to push back on peak surcharges for Q4 and early 2027 bookings.

Correction

Southern Motion's final financing hearing moved to Oct 20.

Our Oct 6 issue said Southern Motion's final financing hearing was still set for Oct 7. That was wrong. A court order entered Oct 6 moved it to Oct 20, and the creditors' meeting was continued to Oct 28. No sale motion has been filed. If you carry the line, keep asking your rep about open orders and warranty support.

Bottom line

Furniture stores were the only part of retail selling less than last year in September, though the gap keeps narrowing. With mortgage rates at 7.40%, move-in demand stays thin into Q4, and retailers are buying close to need. Expect more clearance pricing as Haynes and The Dump liquidate 12 stores and the owner of Kirkland's exits several dozen locations. Sell value and certainty, keep reorders tight, and if you paid IEEPA tariffs, keep your refund paperwork current.

If someone in furniture would get something out of this briefing, forward it to them. That's how this reaches the people who actually need it.

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Furniture Store Sales Fell 2.7%. Every Other Category Grew.