Business of Home Podcast Summary

Episode: The Thursday Show: A Tariff Turnaround. Plus: The Quest for a Designer-Approved Recliner
Release Date: May 15, 2025
Hosts: Dennis Scully, Fred Nicholas, Caroline Burke

Introduction

In this episode of the Business of Home Podcast, host Dennis Scully, alongside executive editor Fred Nicholas and producer Caroline Burke, dives into critical updates impacting the interior design industry. The discussion centers around a significant tariff rollback between the US and China, the unexpected acquisition of Lawson Fenning by Standout For Good, and the emerging trend of designer-approved recliners reshaping living spaces.

Recap of Previous Episode: Pearson Ward Partnership

Before delving into current news, the hosts briefly revisit last Monday's episode featuring the acclaimed design duo Pearson Ward. They highlight the seamless long-distance collaboration between partners based in Alabama and Los Angeles, emphasizing their improvisational approach during installations and their strategy of acquiring items without specific project intentions. Caroline Burke notes, “They have a lot of fans and a wonderful partnership built out of friendship” (02:00).

Industry News

1. Tariff Rollbacks: A Shift in Global Trade

The episode opens with the announcement from the Trump administration regarding the rollback of tariffs on Chinese and UK goods. Previously, tariffs stood at an exorbitant 145%, now reduced to 30% with a temporary 90-day pause.

• Impact Analysis: Caroline Burke explains, “It's a rollback from 145%, which is good news, but we've still got 30% tariffs and it's a 90-day pause” (06:44). She discusses the mixed reactions from brands and designers, highlighting the uncertainty for long-term planning.

• Designer’s Challenge: Dennis shares experiences from a company committed to not raising prices despite high tariffs, which now feels more manageable with the reduction. Caroline adds, “It’s very hard to situate yourself amid this rapidly changing landscape” (07:59).

• Domestic Production Concerns: The hosts express concerns for domestic textile producers who may find themselves less competitive with the tariff reductions, questioning the feasibility of building new factories under such fluctuating policies.

2. Lawson Fenning's Acquisition by Standout For Good

A surprising development in the furniture industry is the sale of a majority stake in Lawson Fenning, a Los Angeles-based furniture brand, to Standout For Good, a holding company known for faith-based apparel retailers.

• Company Profiles: Caroline Burke outlines Standout For Good’s portfolio, including brands like Altered State at Home, contrasting them with Lawson Fenning’s higher-end market positioning (12:23).

• Strategic Implications: Discussion revolves around the strategic fit and potential synergies, with both hosts expressing curiosity over the differing target demographics. Dennis remarks, “It didn't seem likely they had made this investment to just fold Lawson Fenning into the Standout for Good roster” (13:18).

• Future Outlook: Expectations are set for Lawson Fenning to continue operating independently with plans for new showrooms focusing on vintage and unique pieces.

3. Closure of Griswold Textile Print

The textile industry faces another blow as Griswold Textile Print, a Rhode Island-based screen printing facility with an 88-year legacy, announces its permanent closure effective May 30th.

• Historical Significance: Caroline Burke reflects on the company's contributions, stating, “They had this enormous room where they would spin these big bolts of fabric and do hand screen printing” (15:19).

• Industry Impact: The closure highlights the dwindling number of traditional textile printers in the US and accelerates the industry's shift towards digital printing methods. Caroline adds, “Going digital has gotten a lot better… but it's sad to see a longtime business go away” (17:08).

4. Launch of Home Design Guild by Jackie Poulson

Jackie Poulson, former Chief Marketing Officer of Summer Classics, introduces the Home Design Guild, an innovative online platform designed to match homeowners with interior designers.

• Platform Features: Described as “Hinge meets Houzz meets Pinterest,” the platform emphasizes personality compatibility through questionnaires and psychology exams before allowing homeowners to browse designer portfolios (19:27).

• Market Need: The hosts discuss the persistent challenges designers face in converting leads into long-term clients, with Jackie’s approach aiming to streamline and enhance the matchmaking process. Caroline states, “There’s clearly a need to find a way to better match clients with designers” (21:01).

• Comparative Analysis: References are made to past efforts like Karen Fisher’s Designer Previews, underscoring the ongoing demand for effective designer-client connections.

5. The Rise of Designer-Approved Recliners

A significant portion of the episode is dedicated to the evolving perception and design of recliners within high-end interiors.

• Market Dynamics: Caroline Burke observes a resurgence in recliner popularity, noting their invisibility in luxury design magazines contrasted with their robust consumer demand. She mentions, “American consumers like recliners and they buy a lot of them” (26:01).

• Designer Perspectives: The traditional stigma associated with recliners is discussed, with designers grappling to balance client desires with aesthetic integrity. Caroline recounts, “Meg Lonergan Interiors... sometimes she'll float the recliner preemptively to win the husband over” (28:29).

• Technological Advancements: Innovations in recliner mechanics have allowed for sleeker designs that integrate seamlessly into modern living spaces. Caroline highlights, “The mechanism that makes it expand and contract has gotten a lot better, a lot thinner, a lot lighter” (30:12).

• Psychological Barriers: The hosts explore the lingering negative associations rooted in past designs, with Dennis noting, “It's almost a post-traumatic stress reaction to people when you mention it” (31:13).

Industry Insights

Inflation Trends and Furniture Pricing

Caroline Burke points out that while the overall Consumer Price Index (CPI) for April saw a slight decline, furniture prices experienced a modest increase. This juxtaposition raises concerns about future inflation impacts on the furniture sector, especially given the recent tariff adjustments. She notes, “Furniture prices did tick up a very small amount. So clearly if you make a lot of stuff in China, it was hard to get around those tariffs” (34:54).

High Point and NKBA Collaboration

Dennis Scully highlights an upcoming collaboration between High Point and the National Kitchen and Bath Association (NKBA), aiming to create a more integrated and comprehensive market experience. This partnership is anticipated to attract a diverse range of designers and could signify a new era of unified industry events. Dennis remarks, “The details aren't fully sketched out, but I think this could be really interesting” (35:52).

Conclusion and Final Highlights

As the episode wraps up, the hosts emphasize staying informed through the Business of Home platform, which offers extensive resources including news updates, job listings, and workshops. They encourage listeners to engage with their content online at businessofhome.com and to stay tuned for future episodes that continue to explore the dynamic landscape of the interior design industry.

Notable Quotes with Timestamps

• Caroline Burke (06:44): “It's a rollback from 145%, which is good news, but we've still got 30% tariffs and it's a 90-day pause.”
• Dennis Scully (13:18): “It didn't seem likely they had made this investment to just fold Lawson Fenning into the Standout for Good roster.”
• Caroline Burke (19:27): “This is Hinge meets Houzz meets Pinterest.”
• Caroline Burke (28:29): “Meg Lonergan Interiors... sometimes she'll float the recliner preemptively to win the husband over.”
• Dennis Scully (31:13): “It's almost a post-traumatic stress reaction to people when you mention it.”

Time Stamps Reference

• 02:00: Discussion on Pearson Ward's partnership.
• 06:44: Explanation of tariff rollback specifics.
• 07:59: Impact of tariff changes on brands and designers.
• 12:23: Introduction to Standout For Good.
• 13:18: Strategic implications of the Lawson Fenning acquisition.
• 15:19: Closure announcement of Griswold Textile Print.
• 17:08: Shift towards digital printing in textiles.
• 19:27: Launch details of Home Design Guild.
• 21:01: Market need for designer-client matchmaking.
• 25:29: Transition to discussing recliners.
• 26:01: Recliner market dynamics and consumer behavior.
• 28:29: Designer strategies to incorporate recliners.
• 30:12: Technological advancements in recliners.
• 31:13: Psychological barriers against recliners.
• 34:54: Inflation trends affecting furniture pricing.
• 35:52: High Point and NKBA collaboration announcement.

For more detailed insights and ongoing updates, visit businessofhome.com.