Inside the growth strategy of Bob’s Discount Furniture as it approaches 200 stores, with 20 openings planned in 2025
Bob’s Discount Furniture is continuing on a growth spurt this year, with 20 new stores planned to open throughout 2025 as it looks to tap new regions. It is the fourth straight year of openings for the retailer, which is headquartered in Manchester, Connecticut, after opening 20 stores in 2022, seven in 2023, and 20 more last year.
Chief Operating Officer Ramesh Murthy told Modern Retail the company aims to focus its expansion on new markets. Six stores are planned for North Carolina, its first Southeast state, where the total population grew by more than 573,000 people from 2020 to 2024. Bob’s is also opening its first-ever location in Vermont.
“Even when housing may be tough, there are lots of places in this country where there’s a net addition of customers,” he said.
The next round of stores opening up this spring are in Roseville, Michigan; Bohemia, New York and Montgomeryville, Pennsylvania.
Bob’s, founded in 1991, currently has 195 stores nationwide. The privately held company doesn’t share revenue or business data, but it has held a growing foothold in the furniture industry as a no-frills but affordable shopping experience. It’s known for its everyday value-priced offerings without special promotions or holiday-style deals. Bob’s has also gained a reputation for its advertising featuring a friendly-faced cartoon salesperson — named Bob — while its shopping experience has a more casual, family-oriented vibe compared to higher-end counterparts. Furniture and mattresses can be sat on and experienced, while people are invited to have snacks at free in-store cafes. The company is currently led by CEO William Barton, formerly of California Closets.
The company’s expansion comes at a pivotal time for the furniture industry. Home purchases tend to be a big driver of furniture sales, and the current housing market means some brands have had to reassess their strategies. Meanwhile, April retail sales figures from the U.S. Census Bureau show the furniture category has seen 7.8% growth year-over-year. At around $11.5 billion in monthly sales, it’s a ways off from the record of $12.6 billion set in January 2023.
But Murthy from Bob’s said the retailer focused on markets with net inbound migration to help fuel its expansion. Bob’s relies on a mix of customer analytics and market research to choose its new locales. From there, he said Bob’s can fit into a mix of plazas and shopping centers, but focuses on those that already have high traffic. “We look for vibrant retail corridors with a lot of activity and convenient access for our future customers,” he said.
Retail real estate consultant Rebecca Fitts said Bob’s expansion strategy for areas with budding home markets makes sense thanks to its price point. While it tends to be a value-priced option, there’s a range of products that can appeal to a variety of shoppers. Sofas, for instance, range from $399-$4,000. “They have a real niche to play in,” she said.
From a location perspective, Fitts said there’s room for Bob’s in design districts where people are going out with the intention of shopping around for furniture. Even if there are higher-end brands nearby like West Elm or Crate and Barrel, many landlords aim to strike a high-low tenant mix, she said.
For Bob’s, expanding in this market offers the opportunity to find new customers who may not have considered the brand before. “If you are in expansion mode, you have a chance to go to spaces where other brands are,” she said.
Murthy said being in proximity to other furniture home goods sellers is a strategic benefit. Furniture is a considered purchase that people often want to see in person before committing to buy and ensure that they’ve seen a range of options before making their decision, he said.
“It’s true that folks will compare, and with our value, we’re happy to have that conversation,” he said. “The number of times folks will come into our place, and then go look somewhere else, and come back is relatively frequent for us.”
As far as Bob’s experience goes, the in-store approach is intentionally welcoming but hands-off, unless help is wanted.
“If they say yes, I’d just like to look around, we leave them alone and we’ll just keep near them,” he said. “We’re very supportive when you want that, or completely out of your way when you want that, and not pushy at all.”
Once a market is identified, choosing an exact location is as much of an art as a science. Murthy wouldn’t share if the retailer is specifically going after spaces vacated by the likes of JoAnn’s, Big Lots or Party City that have closed in recent months. But he said that Bob’s does aim to be selective about where it locates and aims to ensure that its future expansion isn’t too much too soon.
“We’re very disciplined,” he said. “We don’t just go and get a box to get a box. And we turn down as many, if not more, as we take in the process.”