Ashley Home Acquires Resident Home: A New Era in Home Furnishings
In a landmark deal that signals a shift in the home furnishings landscape, Ashley Home, an affiliate of Ashley Global Retail, has officially acquired Resident Home. Resident Home, the owner of popular mattress brands such as Nectar, DreamCloud, Awara, and Siena, brings significant e-commerce and digital expertise to the table. The acquisition, approved by the boards of both companies, was finalized on Wednesday, marking the beginning of an exciting new chapter for both organizations.
The Deal and What It Means for Both Companies
Eric Hutchinson and Ran Reske, co-founders and co-CEOs of Resident Home, will remain at the helm of their company following the acquisition. The leadership continuity suggests that Ashley is banking on Resident’s expertise to enhance its digital and technological capabilities.
For Resident Home, this deal represents a massive growth opportunity. Known primarily for its focus on mattresses, Resident now has the backing of one of the largest names in home furnishings to expand its product offerings and global reach. “We are incredibly excited about the possibilities that Resident brings to Ashley,” said Todd Wanek, CEO of Ashley. “In only a few years, Resident has established itself as a premier destination for mattresses, and we believe this merger will strengthen both companies and accelerate our growth trajectories.”
With Resident already selling through over 2,500 retailers in the U.S., Canada, and the U.K., this acquisition will significantly boost its presence in brick-and-mortar locations. Ashley operates over 1,125 stores in 67 countries, giving Resident the chance to further expand its footprint and increase its consumer base.
The Power of E-commerce Meets the Strength of Retail
What makes this acquisition particularly compelling is the complementary nature of both businesses. Resident Home has made a name for itself through its strength in e-commerce and data science. Its ability to harness technology for customer insights and online retail has fueled its rapid growth. Ashley, on the other hand, is a powerhouse in traditional retail with its expansive network of stores across the globe.
This combination of digital expertise and retail dominance offers a strategic advantage to both companies. Resident will gain access to Ashley’s vast retail network, while Ashley will benefit from Resident’s cutting-edge e-commerce capabilities, positioning both brands for future growth.
A Stronger Foothold in the Mattress Market
One of the key advantages of this acquisition for Ashley is its increased presence in the mattress sector. With Resident’s portfolio of popular mattress brands, Ashley will solidify its position as a one-stop shop for all things home furnishings—offering everything from sofas and dining tables to high-quality mattresses.
This partnership is a game-changer for Ashley, as it enables the company to tap into a booming industry. In just a few years, Resident has become a trusted name in the mattress industry. By merging with Ashley, the combined companies are positioned to capture a larger market share and deliver more value to customers.
Opportunities Amid a Changing Market
The acquisition comes at a time when the home furnishings industry is in flux. While the pandemic initially caused a spike in home-related purchases, recent data shows a decline in demand. Home and furnishing sales dropped 7.5% year-over-year in January 2023, according to the U.S. Department of Commerce. Many well-known companies in the industry have even filed for bankruptcy, including Z Gallerie, Mitchell Gold + Bob Williams, and Tuesday Morning.
Despite these challenges, the Ashley and Resident partnership offers both companies the opportunity to weather the current market conditions and emerge stronger. With Resident’s strong digital presence and Ashley’s massive retail footprint, this union could set a new standard in the home furnishings industry and position both brands for future success.
Looking Ahead
This acquisition marks a new era for both Ashley and Resident. It’s more than just a business deal—it’s a strategic partnership designed to accelerate growth, diversify product offerings, and enhance customer experiences across the globe. As Hutchinson of Resident Home expressed, “Joining forces with Ashley enables new opportunities for growth, and our team is excited about the possibilities ahead.”
In a constantly evolving industry, this merger highlights the power of innovation and collaboration. With Ashley’s industry dominance and Resident’s e-commerce expertise, the future of home furnishings is set for a revolution—one that will bring more value, more products, and more convenience to customers worldwide.
Conclusion
Ashley’s acquisition of Resident Home is a bold move that speaks to the future of home furnishings. As both companies come together, they bring complementary strengths that will allow them to navigate an ever-changing market with confidence. For customers, this means access to a wider range of products and services, along with a seamless shopping experience, whether online or in-store.
This merger is a testament to the resilience and adaptability of the home furnishings industry. With Ashley and Resident now working together, the possibilities are endless—and it’s safe to say that both companies are set to achieve great things in the years ahead.