Furniture and home furnishings store sales have declined from a January 2023 peak of $12.7 billion to $11.8 billion in May 2025, signaling a broader slowdown in the category. Yet, smart players like Bob’s Discount Furniture and IKEA are bucking this trend, not despite the headwinds, but because of them.

The Power of Value Pricing

At Bob’s HQ, COO Ramesh Murthy says their mantra is simple: “Value is always in vogue.” This principle underpins their aggressive growth strategy. Bob’s is opening 20 new stores in 2025, marking its fourth consecutive year of expansion. These new locations span key growth areas including North Carolina and Vermont.

Meanwhile, IKEA is rolling out eight more U.S. stores this spring and summer, part of its broader push to deepen affordability and convenience. Over the past five years, IKEA has climbed U.S. market share by 13.6%, leveraging low pricing as a powerful draw.

Omni‑Channel Convenience Wins Customers

Both retailers have embraced seamless integration between digital and physical touchpoints. IKEA U.S. COO Rob Olson emphasizes their mission: “meet people however they choose to shop.” This includes easy online browsing, in-store pickups, and efficient last‑mile delivery systems, a strategy supported by over $2.2 billion in U.S. investment through 2026.

Bob’s too is bolstering its digital presence, offering virtual room planners and enhancing its e‑commerce capabilities to complement its in-store experience.

Consumers Trade Down, Value Brands Gain

Amid high costs and cautious spending, consumers are trading down. Industry experts point to price-aware retailers like IKEA and Bob’s as likely to gain market share. Bob’s spans pricing from budget-friendly $399 sofas to premium options up to $4,000, catering to diverse shopper needs.

IKEA’s low-price focus isn’t new, it’s core to their design and branding, but remains especially potent in today’s cost-conscious environment .

Strategic Growth: Targeting High‑Demand Markets

Bob’s isn’t haphazard in expansion. Using analytics and demographic research, they select high-growth regions, often repurposing leases from defunct big-box stores . New stores in Burnsville MI, Reno NV, and Bohemia NY show this disciplined approach.

Their estimated 196-store network now extends into Southeast U.S. and Vermont, pushing them into the top 7 national rankings by volume, an impressive rise.

Community, Culture, and Operational Discipline

Bob’s success extends beyond price. A family-friendly culture, with in-store cafes, snack bars, and casual staff, helps distinguish the brand. Managers from established markets often lead new store teams to infuse company culture locally .

While IKEA focuses on affordability, it also emphasizes sustainability, integrating renewable energy across U.S. stores and piloting secondhand furniture offerings.

A Bright Future Amid Industry Weakness

Despite sluggish housing markets and consumer uncertainty, Bob’s and IKEA are thriving by staying true to value propositions, omni-channel accessibility, and disciplined growth. Analysts suggest these value retailers are well-positioned to continue expanding market share as consumers remain budget-sensitive and drawn to seamless shopping experiences.

• Bob’s Discount Furniture: 20 new stores in 2025, including entry into North Carolina and Vermont; growth to nearly 200 locations.
• IKEA U.S.: Eight new stores this spring/summer; heavy investment in omni-channel platforms and fulfillment infrastructure.

With demand favoring affordability and convenience over luxury, these value giants are seizing momentum. As the broader furniture market stalls, Bob’s and IKEA are proving that with sharp pricing, smart expansion, and customer focus, it’s still possible to grow in tough times.