EXCLUSIVE Q&A: Lovesac extends sustainability to store growth, remodel plans
The Lovesac Company’s new sustainability standard is breathing new life into its building and remodeling plans.
The home furnishings company, which started in founder and CEO Shawn Nelson’s garage in 2001, currently operates approximately 300 retail showrooms and an e- commerce site. Lovesac, which is known for its adaptable modular couches called “sactionals,” is launching a new company standard — one revolving around sustainability.
Called “Designed for Life,” the new standard stems from Lovesac’s ethos of creating sustainable products designed to evolve with customers’ needs and provide long-term utility, ultimately reducing the amount of furniture discarded into landfills. Now Lovesac is applying the philosophy to its store development strategy.
Nelson and Justin Cruse, Lovesac’s senior director of construction and design, spoke with Chain Store Age about how the retailer’s attention toward sustainability will direct the company’s future trajectory.
How important is your immersive in-store experience?
Nelson: Each of Lovesac’s 300 showrooms is 1,000 sq. ft., and features a simple color pallet. Since we are selling the biggest object in the mall, we are very focused on “demo marketing,” which is best done in person.
Our showrooms carry three sectional pieces, as well as two or three beanbag seats. We encourage shoppers to sit on our couches as well as learn how to connect and modulate the pieces into different configurations. There are thousands of combinations and our showrooms provide first-hand inspiration for design, as well as how to upgrade existing pieces and change styles. In fact, 90% of our customers have visited one of our showrooms at one point.
We also offer a strong omnichannel experience that blends our online and physical store experience. Online, we integrated augmented reality (AR) and virtual reality (VR) technology with photography to mimic our showroom experience — making discovery and the shopping experience seamless, unique, and customized.
What is your Designed for Life initiative?
Nelson: Rooted in sustainability, our Designed for Life initiative started as a product development framework. We create merchandise that is built for replacement, recycling or
easy repair so they won't end up in a landfill. Additionally, our woven upholstery fabric is created from recycled water bottles that are chopped into flakes then melted into chip that is spun into yarn. Now we are extending this foundation into all aspects of our business, including store development.
How does sustainability fit into your building and remodeling strategy?
Cruse: There are different facets of sustainability in our expansion strategy. For example, whether opening a new store or remodeling an existing space, salvaging existing building architectures across retail centers is a priority for us. We are also leaning into sustainable building and design materials.
For example, when using wood or tiles, we opt for reputable sustainable sources. For the past several years, we have also been installing LED lighting in our showrooms. To date, 80% of our chain has LED lights, and each showroom has approximately 50 fixtures. While it is a time-consuming process, our goal is that within five years, our entire portfolio will exclusively be using LED lighting.
The next piece of our sustainability strategy is focused on energy management systems. We are currently running a pilot in 14 stores that integrates EMS with our HVAC equipment. This enables us to remotely manage and control systems, manage nighttime vs. daytime set points, and closely monitor efficiency levels to ensure we are not wasting energy. Since launching the pilot in 2023, we continue to see improvements, and plan to roll out the solution chainwide during the first and second quarters of 2025.
What are your long-term sustainability goals?
Cruse: Over the next few years, we will be focusing on more sustainable design. In recent remodels for example, when possible we reused existing materials to reduce waste. As we look ahead to new remodels, we will be leveraging more sustainable materials and supplier sources, and of course continuing our EMS rollout.
The wellness of our showrooms and durability of materials are top priorities, so renewable hardwood floors, ceramic tiles and wood fixtures are top considerations. Overall, we want our showrooms to last the life of our leases, which are traditionally 10 years or shorter.
What do you expect the company’s footprint to look like a year from now?
Nelson: We have been opening between 30 and 40 new locations each year, and there are still plenty of new territories to grow into. To further boost our growth, we are opening shop-within- shops in Best Buy stores. So far, we have a presence inside 50 Best Buy locations.
In September, we also launched our “Lovesac Roadshow” event where we operate pop-up stores in Costco locations. The locations, which will be open for 10 days at a time, feature furniture exclusive to Costco members. We introduce the first locations in mid-September and we will open additional pop-ups at Costcos across the country through November. So far, the pop-up stores can be found at select clubs in Arizona, California, Colorado, Washington D.C., Florida, Georgia, Illinois, Indiana, Maryland, Michigan, Minnesota, New Jersey, New York, Ohio, Oregon, Texas and Washington. We’ll also be adding more locations weekly.
We are always trying new ways to get product in front of shoppers through new channels. It is always an advantage to have direct access to shoppers in different ways.
