Some 80% of Arhaus’ customers have incomes over $100,000, a consumer demographic that is growing fast.Īrhaus estimates the premium home furnishings segment totaled some $60 billion in revenue in 2019. It is reasonable to expect retailers that target the high-end of the furnishings trade to show more resiliency than mass-market competitors due to the greater spending power of their high-income customers. RH, which has been nothing but disruptive with its ecosystem vision of products, places, services and spaces. But there, it is going up against luxury powerhouse RH “They execute well, have good taste and they are nailing today’s zeitgeist,” he shares but adds, “Each of these is fleeting, particularly as the market evolves.” Resiliency at the high-endĪrhaus is counting on continued expansion at the premium end of the home furnishings market. Ramey of the Home Trust International (HTI), a network serving high-end home businesses, sees nothing disruptive in the Arhaus concept. Notably, 40% of these clients make five or more purchases throughout their customer lifetime. And in-home clients repurchase at a higher rate. Through those in-home visits, the company has been able to increase average-order-value more than three times that of a standard order. While getting people into the showroom is a priority, it also takes the showroom direct to the client through complimentary in-home design services provided by 60 designer partners. It also publishes a catalog twice a year to bolster both in-showroom and e-commerce sales. The company reports 80% of e-commerce revenue originates from customers within a 50 mile radius of a showroom. Besides its showrooms in prime locations, the Arhaus website is its virtual showroom on the internet.
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