AVB’s Chad Evans: Independent Dealers Still Winning In Today’s Market

Independent retailers continue to defy industry expectations — and gain market share — even as economic pressures reshape the home appliance, furniture and bedding industries.

That was the message from Chad Evans, Executive Vice President of Merchandising at AVB Inc., during an Industry Update and Town Hall session at the Annual Spring AVB BrandSource Summit. Evans opened the discussion with a timely analogy.

“Everybody that gets into the tournament has a chance to win,” he said, referencing the unpredictability of the NCAA Division I Men’s Basketball Tournament. “It comes down to preparation and planning.”

For independent retailers, the comparison is fitting.

“Before the pandemic, everyone thought the independent channel was gone,” Evans said. “It had dropped to about 22 percent of the industry. Today it’s close to 30 percent. We’ve actually grown share over the last six or seven years.” That growth, he said, reflects the adaptability and entrepreneurial mindset of independent dealers.

Consumer Pressure Is Real

Evans went on to outline several macroeconomic indicators shaping the retail environment. Household debt levels have climbed sharply over the past two years, reaching their highest levels in two decades. Credit card delinquencies have also risen, signaling increasing financial pressure for many consumers. “For the middle class — which represents a lot of our customers — this is real,” Evans said.

Consumer sentiment has improved slightly in recent months but remains historically low, suggesting shoppers are still cautious about discretionary purchases.

Housing Remains a Critical Driver

The health of the housing market continues to directly influence categories such as appliances, furniture and bedding. “If people are buying and selling homes, our businesses are good,” Evans said. Mortgage rates are currently hovering just above 6 percent and are expected to decline modestly later in the year. Housing inventory is also projected to increase by roughly 10 percent in 2026, which could encourage more activity in the market.

However, Evans noted that housing performance varies widely across regions. “There are pockets that are really strong,” he said, citing markets in Texas, Florida, the Midwest and parts of the Mid-Atlantic. “But it’s definitely uneven across the country.”

Tariffs Continue to Influence Pricing

Tariffs remain another important factor affecting product costs across appliances and furniture. Despite ongoing policy debates, Evans said the tariffs impacting the industry remain largely unchanged. “The tariffs that affect our categories are still in place,” he said. “So pricing is not going down.”

In fact, with tariffs on steel and other components continuing, Evans said upward pricing pressure remains more likely than decreases. So far, price increases have been limited to certain categories, including some premium appliances and furniture lines.

Upholstery Drives Furniture Demand

In furniture, Evans pointed to upholstery as the dominant category. Stationery and motion upholstery together account for more than 40 percent of total furniture sales.
Online search behavior mirrors that demand.

“More than 50 percent of the searches on our web platform are for upholstery,” Evans said. “The next closest category is bedroom at about 19 percent.”

For retailers, that makes strong merchandising of upholstery products — both online and in-store — essential.

Outdoor furniture is another category gaining momentum. While it represents roughly 8 percent of major furniture sales, Evans noted that flexible sourcing programs now allow retailers to test the category without committing to large inventory investments.

Premium furniture continues to outperform lower price tiers. High-end brands posted growth of roughly 8 to 10 percent in 2025, while mid-priced and promotional furniture was flat to slightly down.

Mattress Category May Be Nearing a Turnaround

The bedding industry has experienced a difficult stretch, declining 5.1 percent in 2025. However, Evans believes the category may be nearing the bottom.

“It’s been skimming against the bottom for the last couple of years,” he said. “Hopefully we’ve hit that point where it starts to move in the other direction.”

One encouraging trend is the continued strength of higher-priced mattresses.

“There’s still good business happening above $1,500 and even $2,000,” Evans said. “Don’t be afraid to assort those products.”

Appliance Shipments Off to a Slow Start

In appliances, early-year wholesale shipment data shows the industry down roughly 8.9 percent in unit shipments compared with the same period last year. Evans cautioned that early-year results can be misleading, particularly after severe winter weather disrupted large portions of the country.

Still, many manufacturers had anticipated a slower start to 2026. “Most believed the first half of the year would be tougher than the second,” he said.

Laundry And Online Sales Are Key Opportunities

One area Evans highlighted as an opportunity for independent retailers is the laundry category. Although BrandSource dealers perform strongly in cooking appliances, the group under-indexes in laundry compared with the broader industry. At the same time, laundry is one of the fastest-growing categories online.

“Thirty percent of laundry sales are happening online,” Evans said. That shift underscores the importance of strong digital merchandising and a clear online purchase path.

Speed Of Delivery Is the New Competitive Edge

While price remains important, Evans said speed of delivery is becoming the most decisive factor for many consumers. Nearly 80 percent of appliance purchases today are distressed purchases — situations where a product has failed and needs immediate replacement.

“People want to know when they’re going to get it,” Evans said. Messaging around delivery speed is therefore critical.

“‘Get it tomorrow’ is the most important message right now,” he said. “In-stock doesn’t mean much to customers anymore.”

Controlling What Retailers Can Control

Throughout the session, Evans emphasized that independent dealers should focus on the factors within their control — including merchandising, digital marketing, competitive pricing awareness and local promotions. AVB has increased member support in multiple areas, including expanded digital marketing funds, stronger financing programs and additional rebate initiatives.

Evans also encouraged dealers to return to the local marketing creativity that historically set independents apart from big-box competitors. “You built your businesses by being entrepreneurial in your communities,” he said. “Event sales, anniversary sales, special events — those things still matter.”

Despite economic uncertainty, Evans remains optimistic about the independent channel’s future.

Like an underdog team in March basketball, success ultimately comes down to preparation. “There’s always a chance,” he said. “And independents have proven they can win.”

See also: Brandsource 2026 Summit: Going “All In” For Dealer Success