Although it faces the same challenges most home goods retailers do today, given that consumers who spent heavily in the category during the pandemic have lately shifted a proportion of their spending to other sectors, Johnson is optimistic about the year ahead.

Although the company had carefully prepared its shift to a home-centric format, even shedding strong non-domestic categories such as jewelry, external factors suddenly imposed themselves in ways that made the change more difficult. Specifically, Overstock was exercising the final phase of its pivot to home-only sales just as consumers who had invested heavily in their homes during the pandemic were beginning a spending shift to apparel, restaurants and travel as stay-at-home guidance associated with the COVID-19 pandemic became less urgent. At the same time, inflation intensified and shipping issues produced consumer confusion. As such, the home goods sector found itself coping with a greater-than-expected slowing of sales that began toward the middle of 2022, then more promotional activity than could have been anticipated particularly as major retailers had overpacked inventory early in the year and had to offload stock.