LOVESAC
Evolving Showroom Style Retail
First seen on Shark Tank, Lovesac became an instant hit with investors and consumers. The company went public in 2020 and is still in growth mode—opening brick and mortar showrooms to support its lucrative online success. In search of a go-to real estate consultant, Lovesac partnered with ASG for all their real estate service needs, including deal negotiations, real estate and portfolio strategy, construction management, and lease management.
Overcoming the Past
When Lovesac first expanded into physical retail, they made costly real estate mistakes. The brand rushed into leases with poor financial structures, agreeing to high percentage rents, artificial breakpoints, and unfavorable lease language. These bad deals not only hurt profitability but also set a dangerous precedent. Landlords viewed Lovesac’s inflated rent payments as the market standard, making future negotiations harder.
Premium Results
ASG stepped in to create a long-term real estate strategy. The first priority was renegotiating existing leases, restructuring terms to ensure sustainability. ASG also leveraged Lovesac’s new store design concept to reposition the brand from crowded beanbag shop to premium furniture retailer. This helped reset the landlord’s expectations and improve future lease negotiations.
With better lease terms and a clear expansion strategy, Lovesac transitioned from reactive real estate decisions to a strategic, data-driven approach, ensuring every new store contributed to long-term profitability.