Q&A: Private Brands Key to Future Growth for At Home

Continued growth and store expansion along with giving its shoppers a unique assortment of home products is the ongoing focus of At Home and its chairman and CEO Lee Bird.

Recently, the home goods superstore gave its shoppers some positive news when the company announced it would cut prices on products in several key categories, an action possible as a result of the retailer taking greater control of its supply chain, which led to cost savings.

As the company continues to expand its footprint into key markets across the United States, it remains focused on offering an extensive product selection that differs from the competition. At Home is able to achieve this on-going goal by offering an assortment that is largely private label, with many collections brought to market through collaborations with celebrity designers or well-known influencers.

Recently, Bird spoke with Store Brands about the retailer’s latest initiatives and what the future holds for the company.

STORE BRANDS: At Home recently announced price cuts in several categories including furniture, rugs and decor. What factors led to these reductions?

LEE BIRD: Like everyone else, we had raised prices in response to higher supply chain costs. But we have been seeing an easing in costs and things are getting back to a normalized level. One of the major adjustments we made is moving to working directly with ocean freight carriers. This allows us to directly negotiate with them. Over the past several months I have been out with our supply chain team meeting with the heads of the carriers to tell them about our company. We’re the 35th largest importer of containerized goods in the U.S. Once we let them know the volume of our business they were very interested in working with us. We have been running some tests with our ocean freight carriers and so far it’s been a win-win. 

SB: How is At Home communicating these price reductions to shoppers?

LB: We have been communicating directly with our loyal customers and have shared information on our website that we are dropping prices on thousands of items. In our stores, we are using shelf signage to highlight the price drops. Additionally, with many people beginning their product search online, we are also doing a lot of digital advertising as well. 

SB: At Home continues to grow and has more than 260 stores nationwide. What’s next?

LB: We are a high growth retailer and we just opened our 263rd store in Ft. Wayne, Ind. We added eight to 10 new stores this year and are looking to expand in new and existing markets for us. When I joined the company 10 years ago we were in the southeast and midwest and have continued to expand into the Mid-Atlantic and recently opened stores in the New York Metropolitan area and the west coast in California. I think we have the potential to get to 600-plus stores nationwide. 

SB: At Home continues to expand its assortment by launching proprietary celebrity and influencer inspired collections. Will we see further growth with this strategy going forward?

LB: Yes. We like this strategy. It’s important to note that 80% of our products are private label and this helps us keep costs down as we don’t have to pay for any brand premiums. We are also able to lead the product development process to make sure the products we create are designed to work in various areas of the home. We have also collaborated with celebrity designers and influencers across our four main style groups; traditional, farmhouse, modern and global. We really like the balance between our collaborations and the private brands At Home offers. It’s all part of our effort to deliver our customers great value.

SB: Following 2020 and 2021 that had tremendous growth in sales of home products, have sales cooled a bit?

LB: During the first two years of the pandemic demand was pulled forward and we saw a major surge in demand. We had same store sales growth of 19% and 18% in 2020 and 2021 respectively and there was going to be a correction across the industry. But people are still entertaining at home and our seasonal businesses from patio and garden, to Halloween and Harvest through Christmas allows us to meet their needs. We call our stores home and holiday headquarters because we have seasonal assortments that allow shoppers to decorate their home for every season.

SB: What’s on the horizon for At Home?

LB: We know the economy currently is choppy and consumers are more careful about where they spend their money. In a climate such as this, value players will win. I love the place we’re in and we are continuing to make sure consumers see us as the best place for the lowest prices.