The RoomPlace acquires Apt2B


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LOMBARD, Ill. — Top 100 company The RoomPlace has acquired e-commerce player Apt2B in a move that expands its e-commerce business beyond the Midwest and gives it a new pure-play model to reach out to younger consumers.

RoomPlace plans to build Apt2B’s business in major markets across the country and could eventually support it with pop-up brick-and-mortar locations, it said.

The 27-store promotional to mid-priced retailer did not disclose the purchase price. The co-founders of North Hollywood, Calf.-based Apt2B, Mat Herman, president, and Alex Back, chief operating officer, remain in their existing roles.

“Our goal through this acquisition is to capitalize on synergies between the two companies as a way to increase e-commerce traffic, sales and to expand our footprint beyond the Midwest,” The RoomPlace CEO Paul Adams said in a statement.

“We believe this partnership will strengthen our overall position in the industry, providing long-term growth, innovation and a direct-to-consumer experience that is unmatched in the industry.”

Adams later told Furniture Today that Apt2B is a distinctive brand reaching a different demographic, and The RoomPlace intends to keep it that way, although the larger traditional retailer will be able to share valuable resources to help it grow.

“The true synergies in this are our ability to bring in imports for them and help augment their line and the use of our distribution and electronics systems,” he said, adding that among other things, The RoomPlace should be able to help Apt2B source goods at starting prices.

But just as important, and “what’s truly exciting,” is what the modern lifestyle Apt2B is bringing to The RoomPlace, he added.

“They are a pure e-commerce player, and instead of being more of the ‘me, too,’ offering everything in the store, they give us the ability to now go direct channel … and bring that type of experience” to The RoomPlace consumers online.

Apt2B is fabulous at “communicating in a more Millennial way,” he said. “Their customer base lives in that sector, so we’re very excited about their marketing and what they can bring to”

Adams declined to disclose Apt2B sales but said the company is profitable and does business from coast to coast, with about half of it sales coming from the Los Angeles basin area.

“We know we can double their sales,” he said. “With our distribution, we believe we can make a major impact on deliveries and services throughout Chicago, Indiana and the Midwest.”

He would not disclose the size of The RoomPlace’s online business today, but with the Apt2B acquisition, Adams said the company looks to grow online sales to 20% of total sales within two years and eventually between 20% and 40%.

“We want to have impact coast to coast” with Apt2B, he said. “They have a great line. They have an exclusive offering, and we think we can make it to New York and the major metropolitan areas with it and anticipate adding pop-up stores to support that.”

In a press release, The RoomPlace, primarily serving the greater Chicagoland and Indianapolis markets, noted its “vast assortment of quality furniture, name brand mattresses and financing offers, fit for any budget” and added Apt2B, “provides a differentiated assortment focusing on craftsmanship, often American made, for the modern home.”

Apt2B’s Herman said, “We are excited to be able to partner with The RoomPlace team in the next phase of our growth.

“The size, scale and operational efficiencies The RoomPlace provides, in addition to their Midwest distribution centers, allows Apt2B to provide an improved and seamless customer experience which is always our focus.”

The RoomPlace is No. 50 on Furniture Today’s Top 100 with estimated 2017 furniture, bedding and accessory sales of $170 million. In addition to the new e-commerce play, it has pursued aggressive physical store expansion, including the recent opening of its first mall store in Peoria, Ill. Five additional locations are slated to open within the next year.