Bob's Discount Furniture goes public and plans to expand to 500 stores by 2035

Bob's Discount Furniture began trading publicly after an IPO that sold 19.45 million shares at $17 each, and the company said it will grow from just over 200 stores to more than 500 by 2035.

Bob's Discount Furniture began trading publicly this week after an initial public offering. The company emphasized its low-price model as central to its strategy amid a challenging home-furnishings market. Bob's said its merchandise is, on average, up to 25% cheaper than competitors' listed prices. It currently operates just over 200 stores in 26 states and said it aims to exceed 500 locations by 2035. Key facts: - IPO details: Bob's sold 19.45 million shares at $17 each, which the company said produced an initial market capitalization of about $2.22 billion based on roughly 130.4 million shares outstanding. - Ownership: Private-equity firm Bain Capital, which acquired Bob's in 2014, will retain more than 70% ownership after the offering. - Store expansion: The company plans roughly 300 new openings by 2035, with about one-third as infill in existing markets and the remainder targeted to regions including the Southeast, Texas, the Rocky Mountains and the Pacific Northwest. - Pricing and demand: Management says value has become more important for inflation-weary consumers and points to a pricing gap versus competitors as a competitive strength. - Sourcing changes: After reducing reliance on China following earlier tariffs, Bob's now sources most products from Vietnam and the U.S. and reported using supplier negotiations and production shifts to protect margins. Summary: Bob's public offering provides capital as the company pursues a long-term expansion plan that management describes as a continuation of a roadmap it has executed for years. The retailer emphasized value pricing and supply-chain adjustments as ways to navigate recent industry pressures. Management said maintaining its recent pace of growth is key to reaching the 500-store goal.