Home Furnishings Retailer Arhaus a Top Expanding Retail Brand, Placer Says

The consumer behavior experts at Placer examined which brands not only survived the pandemic, but thrived. Placer “broke down ten expanding retail brands to watch in the coming year with an emphasis on those who seem to be hitting the mark with the new, aggressive push.”

Representing the home furnishings category is Arhaus.

“This year is setting up to be another strong year for home furnishing and home improvement retailers, driven by several traditional factors such as home price appreciation/wealth effect, aging housing stock, strong consumer balance sheets, and low mortgage rates, as well as several ‘non-traditional’ variables like increased housing wear and tear due to remote work, increased demand for vacation homes, accelerated millennial household formation, and baby boomers electing to ‘age in place,'” the whitepaper states.

“In addition to benefiting from the broader housing tailwinds, Arhaus can take advantage of the current demographic trends. The retailer is targeting high-income households (those with household incomes of greater than $100,000), which continue to grow as a percentage of household ownership in the U.S. Additionally, the company should benefit from the population shift away from larger cities and into less-dense suburban locations.

“Arhaus currently operates over 70 stores, and is targeting opening between five and seven new showrooms per year for the foreseeable future, with ten showrooms already in the pipeline and an ultimate target of 165+ locations across the country. Arhaus showrooms average 17,000 sq. ft., but a new design studio format averaging 4,000 square feet could offer real estate flexibility to expand beyond its showroom targets.”

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