by COO Ramesh Murthy says the concept improves inventory and speed of fulfillment
SOLON, Ohio — Despite economic headwinds, Bob’s Discount Furniture is expanding its footprint in 2026. For the first quarter, the Manchester, Connecticut-based company had net revenue of $578.1 million, a 8.5% increase from the first quarter of fiscal year 2025. The increase was driven in part by the opening of five new stores, bringing the retailer’s total to 214 stores in 26 states.
“As a 35-year-old business, we’ve successfully navigated multiple economic cycles and periods of market volatility over the past three decades,” said Ramesh Murthy, chief operating officer at Bob’s Discount Furniture. “That experience has helped us develop proven operational playbooks that enable us to adapt quickly, manage costs responsibly and maintain strong inventory flow despite evolving tariff pressures and broader supply chain disruptions.”
One new chapter in the company’s playbook is its new 800,000-square-foot hybrid distribution center and retail store concept, which opened in Solon, Ohio, in February.
“Combining a retail store and distribution center into a single facility in Solon allows us to store inventory locally and significantly improve delivery speed and efficiency for customers throughout the region,” Murthy said. “The facility also serves as a regional distribution hub that supports multiple Bob’s stores, helping us better meet growing demand while enhancing the overall customer experience.”
Murthy said the retail store has a unique merchandising approach that includes its “value-first” offerings, a traditional sleep center and a full-size outlet section. The retail side of the operation also leverages the company’s warehouse teams for product support and inventory management tasks. According to Murthy, the model also reduces transportation costs and improves operational efficiency across retail and distribution functions. Across its network, Murthy said the company has 86% of its inventory in stock and available for delivery in as little as three days.
Murthy added that those advantages are particularly important as the industry navigates a complex operating environment.
“Broadly speaking, the furniture industry continues to navigate a combination of logistical disruption, higher operating costs and ongoing pressure from a challenging housing market,” Murthy said. “At Bob’s Discount Furniture, our scale and supply chain flexibility allow us to respond to these macroeconomic challenges in real time while continuing to deliver value and reliability to our customers.”
According to Murthy, Ohio was the ideal location for the hybrid store-distribution center concept because of its central Midwest location and proximity to major highways and other key transportation routes.
“We have a strong footprint in Ohio with eight Bob’s Discount Furniture stores in cities like Cleveland, Cincinnati, Dayton and Toledo, making the state an ideal test location for this new model,” he added. Murthy said the company has recognized the importance of investing in infrastructure that supports both its growth and its customers’ expectations.
“We’re also seeing an opportunity to expand our presence in newer markets, particularly throughout the Midwest, while continuing to invest in infrastructure that improves the customer experience,” Murthy said. “Innovative models like our Solon, Ohio facility allow us to better support regional demand with localized inventory and more efficient fulfillment, positioning us for long-term, sustainable growth.”
Murthy said the company is “closely monitoring” the new facility and will evaluate opportunities to replicate the model where it makes sense in the future.
