The Labubu craze, retail employment shifts and headwinds in the home goods sector
Modern Retail Podcast
· with Nicole Chaloux-Pinette, Jiake Liu, Lee Mayer
· June 14, 2025
· 45 min
Summary
This episode uncovers how brands are navigating major retail shifts, from the viral Labubu doll craze and its impact on resale markets to the significant retail job cuts in May. Crucially, it provides furniture executives with actionable strategies to combat the housing market slump, focusing on existing customer retention, innovative acquisition, and strategic growth investments amidst economic headwinds.
Key takeaways
To mitigate the impact of a slow housing market, furniture retailers should prioritize serving existing customers through loyalty programs and personalized experiences to drive repeat purchases and referrals.
Develop innovative customer acquisition strategies that are less reliant on new home sales, such as targeting renters, focusing on specific life stages (e.g., downsizing, furnishing secondary homes), or exploring partnerships.
Invest in product differentiation and brand building to stand out in a competitive market, even if it means focusing on niche segments or unique value propositions.
Closely monitor economic indicators like mortgage rates and housing transaction volumes to proactively adjust inventory, marketing spend, and overall business strategy.
Explore direct-to-consumer (DTC) models or enhance digital sales channels to gain more control over the customer journey and reduce reliance on traditional retail channels, especially for luxury or specialized items.
On this week’s episode, Modern Retail’s senior reporters Gabriela Barkho and Melissa Daniels discuss two major topics shaking up the retail world. First, they dive into Labubu dolls, which suddenly seem to be everywhere. They explore how the viral phenomenon started and why it is driving big-ticket resale purchases. Then, they dive into recent news around the state of employment in the retail industry, as almost 11,500 retail jobs were cut in May, per Challenger, Gray & Christmas.
Then (13:30), this week's featured segment brings together three expert furniture executives to discuss how a historic housing slump is affecting the sector. Daniels leads a discussion featuring Nicole Chaloux-Pinette, head of category management and business development at Perigold; Jiake Liu, co-founder of direct-to-consumer outdoor furniture brand Outer; and Lee Mayer, co-founder and CEO of Havenly Brands.
Mortgage rates are at 6.89%, and the National Association of Retailers says April saw month-over-month transaction losses in all U.S. regions. This is a major headwind for furniture companies that typically rely on new home sales to help drive business. While the panelists all run very different businesses, they shared similar strategies around how to serve existing customers, create acquisition opportunities, and invest in opportunities that will lead to growth.
Frequently asked about this episode
What does this episode say about customer strategy?
To mitigate the impact of a slow housing market, furniture retailers should prioritize serving existing customers through loyalty programs and personalized experiences to drive repeat purchases and referrals.
What does this episode say about economic headwinds?
Develop innovative customer acquisition strategies that are less reliant on new home sales, such as targeting renters, focusing on specific life stages (e.g., downsizing, furnishing secondary homes), or exploring partnerships.
What does this episode say about market dynamics?
Invest in product differentiation and brand building to stand out in a competitive market, even if it means focusing on niche segments or unique value propositions.
What does this episode say about retail trends?
Closely monitor economic indicators like mortgage rates and housing transaction volumes to proactively adjust inventory, marketing spend, and overall business strategy.
What does this episode say about customer strategy?
Explore direct-to-consumer (DTC) models or enhance digital sales channels to gain more control over the customer journey and reduce reliance on traditional retail channels, especially for luxury or specialized items.
