Business of Home Podcast Summary
Episode: The Thursday Show: Lindsey Adelman Makes a Change. Plus: Will Wayfair Ever Be Profitable?
Release Date: February 27, 2025
Host: Dennis Scully
Guest: Lindsey Adelman, Influential Lighting Designer

Introduction

In this episode of the Business of Home Podcast, host Dennis Scully, alongside executive editor Fred Niklaus, delves into the latest industry news before welcoming renowned lighting designer Lindsey Adelman to discuss significant changes at her studio. The episode covers a wide array of topics, including consumer spending trends, corporate earnings, technological advancements in showrooms, critiques of real estate listings, and insightful perspectives from Adelman on navigating business transformations.

Key News Discussions

1. Wealthy Americans on a Spending Spree

Fred Niklaus introduces a compelling study revealing that the top 10% of American households now account for nearly half of all consumer spending—the highest proportion since 1989 (06:02). This trend underscores a split economy, where high earners continue to invest heavily despite broader economic challenges.

Dennis Scully elaborates, noting, "It's the tale of two cities, Fred, that we always talk about, right?" (06:30). Fred adds, "over the past four years, spending by high earners has increased 58%, which is certainly way, way more than the accumulative effect of inflation" (06:18). This concentration of spending power raises concerns about economic stability, especially if the stock market falters, potentially curbing the spending habits of these affluent households.

2. Wayfair’s Earnings Report

The podcast shifts focus to Wayfair's latest financial performance. Wayfair reported a half a billion dollars loss for the fiscal year 2024, with only marginal revenue growth compared to 2023 (12:00). Dennis Scully highlights the ongoing challenges: "There was only one time that they made money and that was in 2020," referencing Wayfair's brief period of profitability during the COVID-19 boom (12:19).

Fred utilizes Zeno's Paradox to illustrate Wayfair's struggle for profitability: "It's always going to become profitable. They're making steps, they're halfway to profitability. They're halfway to halfway to profitability" (13:45). Despite efforts to cut costs and expand physical stores, the sustainability of Wayfair's business model outside pandemic-driven demand remains uncertain.

3. Home Depot and Lowe’s Outlook

Both Home Depot and Lowe’s reported solid quarterly sales, with Home Depot nearing $40 billion and Lowe’s achieving $1.1 billion in sales (15:59). However, both companies issued cautious guidance for 2025. Dennis observes, "neither company was predicting that mortgage rates were coming down in any meaningful way" (16:24), signaling ongoing concerns about the housing market's recovery and its impact on renovations and furnishings demand.

Fred adds, "immigration crackdowns might affect Home Depot because immigrants make up a large part of the workforce for construction crews" (17:11), highlighting external factors that could influence these home improvement giants' future performance.

4. New Software for Multi-Line Showrooms

Fred Niklaus discusses an innovative software tool developed by Atlanta-based showrooms Ainsworth Noah and Jerry Pear, named Trade Tech (19:53). This platform aims to streamline the complex operations of multi-line showrooms, offering functionalities tailored to their intricate business models. Dennis Scully expresses enthusiasm for the tool, emphasizing its potential to modernize an industry traditionally slow to adopt new technologies.

However, the high cost—$40,000 for initial software and a monthly maintenance fee—poses a significant barrier for smaller showrooms, indicating that widespread adoption may be limited to larger, more financially robust companies.

5. Critique on Zillow’s Design Listings

Design writer David Michon’s critique of Zillow is another focal point. Michon argues that Zillow’s approach to home staging promotes bland and uniform designs, which can negatively influence the public’s perception of desirable home aesthetics (26:48). Dennis concurs, stating, "Where is the passion? Where is the poetry?" (27:45), and both hosts agree on the opportunity for more creative and personalized real estate presentations.

Industry Highlights

Cabinetry Line Developments

Fred highlights a trend in the cabinetry market, noting that major companies like Floor and Decor are launching new cabinetry lines to meet growing renovation demands (57:59). This movement fills a gap between budget-friendly and high-end cabinetry options, signaling potential growth in the home renovation sector.

Dennis adds, "I was just in Ikea a couple of weeks ago and I noticed their like cabinetry and closet sections are like three times bigger than they used to be" (58:41), indicating increased consumer interest and investment in home cabinetry solutions.

Notable Design Spaces and Inflation in Design Costs

Dennis shares his visit to the new Schumacher space at the New York Design Center, praising its chic design and strategic partnerships (57:59). Additionally, he references designer Brian Paquette’s alarming report of a 30% increase in project costs over two years, illustrating the significant inflation impacts within the interior design industry (58:41). Fred echoes the concern, acknowledging the dramatic rise in material costs and its implications for designers.

Interview Segment: Lindsey Adelman

Major Changes at Adelman Lighting Studio

The episode's highlight is an in-depth conversation with Lindsey Adelman, a luminary in lighting design. Adelman shares her decision to downsize her studio to focus more on creative and sculptural work, moving away from the relentless drive for business growth. She explains, “I really was, you know, sort of like, why? Like, where are we going?” (33:27), emphasizing the importance of maintaining creative integrity over expansion.

Transitioning Production Operations

Adelman outlines a two-year transition plan to transfer production responsibilities to a trusted partner. This strategic move aims to preserve the craftsmanship and quality of her work while freeing up her time to engage in more personally fulfilling projects. She states, “I'm really just happy that I figured out a way to support the work living on and that I didn't... it's a well-oiled machine and system” (47:31).

Social Media Hiatus and Reimagining Connectivity

Adelman discusses her temporary hiatus from Instagram due to its commercial pressures and negative impact on her mental well-being. She shares her desire to return to more authentic, in-person interactions with her community: “I'm just really craving that” (49:24). This introspection aligns with her broader goal of fostering deeper creative connections and maintaining a stimulating work environment.

Upcoming Projects and Future Vision

Looking ahead, Adelman is excited about her upcoming show at Future Perfect in May, which will showcase her new body of work developed through this transformative phase. She remarks, “It's coming out of this place that is a bit more elusive or the drivers are different” (54:36), highlighting a shift towards more innovative and personal design endeavors.

Conclusion

This episode of the Business of Home Podcast offers a comprehensive exploration of current trends and challenges within the interior design industry. From the economic behaviors of affluent consumers and the financial struggles of major companies like Wayfair, to technological advancements in showroom operations and the creative introspection of leaders like Lindsey Adelman, Dennis Scully and Fred Niklaus provide valuable insights for professionals and enthusiasts alike. The episode underscores the dynamic interplay between economic forces, technological innovation, and creative integrity shaping the future of home design.

Notable Quotes:

• Fred Niklaus (06:18): “Over the past four years, spending by high earners has increased 58%, which is certainly way, way more than the accumulative effect of inflation.”

• Dennis Scully (12:19): “There was only one time that they made money and that was in 2020.”

• Fred Niklaus (13:45): “It's always going to become profitable. They're making steps, they're halfway to profitability. They're halfway to halfway to profitability.”

• Lindsey Adelman (33:27): “I really was, you know, sort of like, why? Like, where are we going?”

• Lindsey Adelman (54:20): “Work is a different way of designing. And it's really coming. It's, you could say like a craving or like an urge or something like that in me.”

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