Why is Bob’s Discount Furniture Thriving?

Bob’s Discount Furniture filed for an initial public offering, despite widespread disruption in the furniture category in recent years — one that’s led to the collapses of Value City Furniture, At Home, and several mom-and-pop furniture shops.

Demand surges for furniture amid stay-at-home orders early during the pandemic were followed by a slowdown that led to inventory gluts. Challenges further deepened in following years, largely via inflation and tariffs. Much like home improvement chains, elevated interest rates and sluggish housing activity has also dampened demand for furniture.

Bob’s same-store sales declined 7.4% in 2023 and 3.4% in 2024 in the face of the slowdown, but have recovered strongly, up 10.5% in the first nine months ended Sept. 28, 2025.

Living up to its discount name, Bob’s said in its prospectus that it has benefited from its “everyday low prices” positioning, which it estimates results in pricing being approximately 10% below value-oriented furniture competitors’ lowest promoted prices — and approximately 20% to 25% below their listed prices.

Beyond leverage gained in having 206 stores as of Sept. 28, Bob’s said its pricing benefits from a “narrow and deep” buying stance, with its SKU counts estimated to be approximately one-third narrower than other value-oriented furniture competitors. Bob’s also moved all key production out of China by the end of its fiscal 2024. The retailer’s primary sourcing markets are Vietnam and the U.S.

Other differentials, according to the prospectus, include:

• Democratic pricing: A “Good, Better, Best” assortment strategy enables the retailer to reach beginner, aspirational, and upscale furniture shoppers. Bob’s said in the prospectus, “This model allows us to concentrate purchasing volume on high-velocity items, negotiate aggressive pricing and reduce our inventory risk.”
• Browser-friendly experience: A “no-pressure, no-gimmicks” in-store environment encourages customers to browse, “creating a relaxed and fulfilling shopping experience, particularly when compared to a more traditional furniture buying experience led by high-pressure sales associates.”
• Speedy deliveries: Most purchases from Bob’s can be delivered in as few as three days, rather than weeks, anchored by five strategically located distribution centers and additional third-party regional depots. Bob’s said, “Our expeditious delivery timeline and overall convenience are key elements of our value proposition and we believe greatly enhance our overall customer experience.”
• Fun: The retailer’s humorous advertising campaigns featuring the “Little Bob” sock-puppet stand out against the “serious, high-end image of traditional furniture stores,” while complimentary in-store cafés add some “retail adventure” to the showroom experience.

Bob’s, which has been owned by Bain Capital since 2014, sees an opportunity to expand to more than 500 stores in its existing format by 2035 and expects to benefit should housing turnover and new residential construction pick up as interest rates and inflation normalize.

The retailer said, “Bob’s has proven its ability to outperform industry benchmarks even through recent headwinds, underscoring the durability of our model and positioning us to capture incremental upside as conditions improve.”