NEW YORK — Lovesac will be entering the loveseat, sofa and chair category beyond its Sactionals format with the introduction of EverCouch in 2025.
The intro is part of a plan to add new platforms to complement Sacs and Sactionals over the next three years, according to CEO and founder Shawn Nelson, who outlined the company’s strategy during Lovesac’s Investor Day.
Entering the $14 billion sofa, loveseat and chair category won’t cannibalize the company’s existing sectional business, said Nelson, because only a small percentage of Sactional buyers are purchasing units that are the same size as a two-seat or three-seat sofa.
The EverCouch will feature many of the same features as Sactionals such as storage, washable covers and modularity with different arm styles in an easy-to-ship, easy-to-assemble format, the latter using a steel pin system. However, to keep the price point lower, EverCouch products won’t be rearrangeable, interchangeable or expandable like Sactional products.
At this point, EverCouch won’t be set up to accept Lovesac’s StealthTech sound system, nor will it feature a recliner, which was newly added to the Sactional.
Nelson said he’s excited about the growth potential for EverCouch through product extensions. There are also opportunities for selling EverCouch beyond the Lovesac showrooms and website, he said, noting the price and configuration of EverCouch products make them attractive for selling through other channels, similar to traditional furniture products.
EverCouch also provides a scale that is more appropriate to urban areas, he said, citing major cities such as New York. “It’s feature light,” said Nelson, but still fits with the “designed for life” format. “It’s built to last and designed to evolve.”
On price for EverCouch, without giving specifics, Nelson said the price of an EverCouch loveseat will likely be half the price of the same configuration in the Sactional format.
Keith Siegner, CFO and executive vice president at Lovesac, added EverCouch “is a very Internet-able product” that will be attractive to sell online.
Along with the EverCouch intro, the company plans to add platforms that target other rooms in the home in the following two fiscal years. The goal, said Nelson, is to triple Lovesac’s household penetration by 2030.
The company’s core value, said Nelson, is top ambition. “We are a team of killers. We’ll take this company to the moon.” Along with that is Lovesac’s stated mission, said Nelson, which is to become the most beloved brand in America.
Referring to a photo of an oak tree with many branches and deep roots, Nelson said, “That’s the kind of brand I want to build,” likening their goal for brand recognition to what has been achieved by Nike, Apple and Disney.
Using that same tree analogy, he said Sacs, Sactionals and now EverCouch are the branches on the tree, as will be the two new platforms, while StealthTech and services are the life system that flows within the tree. “Each branch represents a big, meaty business,” said Nelson.
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