Conversation with Todd Wanek, Ashley Furniture Industries- PART 2
In Part 1 of our conversation with Ashley Furniture Industries CEO Todd Wanek, we tackled big-picture topics like tariffs, supply chains, and U.S. manufacturing. In Part 2, Wanek speaks directly to home furnishings retailers, offering top strategies for retailers to stay competitive in today’s challenging market. From managing cash flow and boosting inventory turns to embracing technology, storytelling, and next-gen financing, Wanek shares the strategies he believes every retailer needs to survive and grow. At the heart of it all? A deep belief in the resilience, grit, and entrepreneurial spirit that define this industry.
Resilience and Grit: The Backbone of Home Furnishings
Wanek began by underscoring the unique DNA of the furniture industry. It’s a business, he noted, deeply personal to many of its participants, dominated by entrepreneurial, often family-run organizations able to adapt quickly. “This is an industry made up of entrepreneurs,” Wanek observed. “That scrappiness and grit, the ability to reinvent and develop a competitive advantage—that’s our resilience.”
He emphasized the industry’s multi-generational nature, its deep roots in community, and a core belief in hard work and passion. Simply put, resilience is woven into the fabric of the home furnishings sector.
Advice to Retailers: Control, Cash Flow, and Customer Focus
Pressed for actionable advice, Wanek returned to basics:
- Stabilize supply chains—and maintain buffer inventory, or ensure your supplier does.
- Focus on cash flow above all. Inventory is cash, and inefficient inventory turns are retail’s silent killer. He suggested a rigorous approach: drive inventory turns dramatically higher (aiming for monthly, not quarterly), scrutinize every expense, and, wherever possible, move to a model where inventory is sold and delivered quickly, reducing carrying costs.
- Do not cut advertising. “That’s the last thing to cut. You can’t cut fast enough to compensate for a drop in top-line sales.”
These foundational steps are part of Wanek’s top strategies for retailers seeking long-term sustainability.
Differentiation and Experience: Winning in a Crowded Market
How should local retailers compete amid the rise of large chains and DTC brands? Wanek was unequivocal: focus on local story, connection, and in-store experience.
“Smaller retailers have a massive advantage with community connections,” he insisted. Leveraging community engagement, unique store narratives, and a genuinely enjoyable, modern store experience can set retailers apart. So long as sales staff are well-trained, stores are clean and updated, and service is world-class.
Wanek noted that social ambassadors and local influencers can spread awareness far more authentically than big-budget campaigns, especially in tight-knit markets.
The Growth Engines: Upholstery, Innovation, and Storytelling
Where does Wanek see the strongest immediate growth? Upholstery, especially sectionals and customizable modular designs, is “exploding.” As consumer lifestyles evolve, the value of flexible, comfortable, and family-friendly furniture grows.
He also pointed to innovation in washable fabrics, sleep technology, and more, urging retailers to refresh product lines and master the art of storytelling. “Don’t just say ‘Welcome to my store.’ Say, ‘Let me show you what’s new.’ Customers respond to a reason to buy.”
Innovative product offerings and personalized engagement form another pillar in Wanek’s top strategies for retailers adapting to evolving consumer demands.
Financing: Making Home Possible for More
With economic uncertainty and high interest rates limiting cash liquidity, financing has become critical for consumers and stores. Wanek advocated aggressively using tiered financing options, aiming for 40–50% of sales via financing plans to lift average tickets and include more buyers.
Stores should adopt a waterfall strategy—integrating prime and sub-prime options and training staff to present these as seamlessly as possible. “If you’re not doing it, you’re missing a massive opportunity,” he emphasized, adding that good financing lifts the entire ecosystem, especially when paired with affordable rates and innovative partners.
Technology and the Future: AI, Digital Assets, and Social Commerce
Wanek is unabashedly bullish on technology as the industry’s next great leap. At Ashley, accounts payable and forecasting are already largely AI-driven, freeing staff from repetitive tasks for more creative pursuits. Production scheduling is another frontier—the goal is to reduce lead times greatly through automation and algorithmic planning.
He said AI should not be feared—it’s the car to yesterday’s buggy, a tool for reassigning people to higher-value work. He urged owners to assess their organizations for tasks that could be automated systematically, and to get curious about emergent tools.
Digital assets (e.g., CGI for product visualization) are a must-have in retail, even if full room-planner VR is still a few years from maturity. Social commerce—live shopping streams, TikTok Shop, integrated purchasing via influencers—is poised to explode in the U.S., following China’s lead. Forward-thinking retailers should be building their frameworks for engaging in these digital spaces.
Generational Change and Mindset: The Leadership Imperative
Wanek is passionate about attracting young, creative talent into home furnishings—an urgent priority as the industry’s demographic skews older. “We need to make business fun,” he declared. Resist the “just selling furniture” mindset. Instead, focus on the power of creating comfortable, beautiful homes and life experiences.
He reflected on the failures of many leading retailers from 2001 to today—over half vanished from the Top 100 list. The survivors invested in teams, stayed market-aware, reinvested, and adapted.
“Charles Darwin says it best: He who adapts to change will survive,” Wanek reminded the audience.
For today’s furniture retailers and manufacturers, that means:
- Stay focused on your circle of control.
- Diversify supply chains and maintain supply stability.
- Invest in in-store experience, innovation, and digital engagement.
- Harness technology and financing as drivers of growth.
- Know and tell your story, building community inside and outside the store.
- Invest in and nurture the next generation; make business fun and meaningful.
These principles round out Wanek’s top strategies for retailers navigating turbulent times.
Final Takeaways: Leading with Vision, Values, and Gratitude
As the session closed, Wanek offered hope and advice for leadership in turbulent times. He said leaders must be inspirational, clear on their vision and values, and relentlessly focused on what they can control. He cited business thinker John Maxwell: “If you don’t know who you are, the world will tell you. If you don’t know what you want, the world will tell you.”
Todd Wanek’s conversation with the HFA and his top strategies for retailers should serve as a playbook for every furniture retailer and manufacturer facing uncertainty. The way forward is through agility, relentless focus on what matters, courageous innovation, and, above all, an unwavering belief in the value of helping people create homes where life truly happens.
