Retail Brochure single pages

IT’S A BRAND
NEW
DAY AT
ASHLEY

THIS IS
HOME
TRUST 04
Why the sentiment’s shared by millions
VISION 06
Discover the formula for being #1
MISSION 08
It’s the power behind Ashley
CUSTOMER 10
Treat her royally and she’ll shop us 24/7
TRANSFORMATION 12
This is where brick-to-click brings her home
ADVOCACY 14
Success is a happy, socially
connected customer
STYLE 16
Fresh reasons to shop with us,
season after season
QUALITY 18
So many quality products
delivered out of the box
VALUE 22
It’s the really big things we do
COMMITMENT 24
How we’ll help you grow,
every step of the way
GIVING 26
What every Ashley
purchase empowers

LET’S GET THE
CONVERSATION
STARTED

All relationships, whether personal or business
are built on trust and commitment. Right now,
Ashley HomeStore is making seismic moves to
ensure the trusting relationships we have with
our licensees, associates and our customers—
are long-lasting and successful.
>> Frictionless Customer Journey
>> Investing in Technology and Growth
>> Digitalized Brick-to-Click Evolution
ASHLEY HOMESTORE 05

HOW DO YOU DEFINE
“
VISION
Being #1 is not
a phenomenon.
It’s a strategy
fueled by vision,
execution and
a billion dollar
investment.
“
THE PASSION, DRIVE
AND COMMITMENT OF
ASHLEY’S EMPLOYEES
HAVE MADE US THE MOST
RECOGNIZED FURNITURE
MANUFACTURER AND
RETAIL BRAND IN THE
WORLD.
— Todd Wanek, President and CEO
Ashley Global Retail
EMPLOYEES
26K+
CHINA HOMESTORES
100
TOTAL HOMESTORES
700+
ASHLEY HOMESTORE 07

WHAT TYPE OF
MISSION
BUILDS SUCCESS
“
Everything we do is
driven by achieving
more for less. To do
that, you have to work
smarter, create desire
and build value for
the consumer.
“
— Ron Wanek, Founder and Chairman
Ashley Global Retail
08
ASHLEY HOMESTORE

ASHLEY’S VALUE
CHAIN—HOW WE
ANTICIPATE, VERIFY
AND COMMUNICATE—
IS DRIVING OUR
PHENOMENAL GROWTH.
PRODUCTS
8K+
RETAIL DISTRIBUTION CENTERS
200+

NOW MEET OUR
NEW BOSS
HELLO, WHITNIE
She’s stylish, social and knows exactly what she wants.
Treat her like your only customer and she’ll return the favor
by shopping Ashley 24/7.
Information-savvy customers like Whitnie now control the marketplace. For
these customers, constant connectivity is a way of life. They expect companies
to respond and interact in real time, and treat them as human beings with
unique preferences, not addresses on an email list. Understanding consumer
wants and needs is at the epicenter of a positive consumer journey.
2.8x
74% 71%
more Millennial consumers
run their life from mobile
devices vs. Baby Boomer and
Traditional consumers
are likely to switch brands
if they had a difficult
purchasing or checkout
process.
are more likely to
purchase products that
have positive online ratings
ASHLEY HOMESTORE 11

HOW IMPORTANT IS
TRANSFORMING
THE WAY SHE SHOPS
Now more than ever, retail is fueled by the breakneck
speed of the modern digital landscape.
As a result, consumer habits are shifting, as are their demands
for a personalized, seamless customer journey.
Ashley HomeStore is investing millions to transform the way she
wants to shop across all brick-to-click channels—and we’re doing
it in new and exciting ways.
51%
57%
of consumers want the
ability to purchase products for
delivery via a mobile device.
of consumers say it’s
absolutely critical for
companies they purchase
from to be innovative
12 ASHLEY HOMESTORE

+
+
+
+
+
+
+
+
2K SQ. FT. HOMESTORE/
INNOVATION LAB RETAIL
Ashley Concierge
Digital Touchscreen Displays
Mobile Payment/Checkout
Paperless Receipts
Dream Diagnostic
MOBILE
Ashley App
Track My Order
Geo-targeted marketing/Smart Beacons
VIRTUAL AND AUGMENTED
REALITY
Ashley 360°
ONLINE
Live Chat
Digital-only Catalogs
CRM/SALESFORCE
MERCHANDISING
Personalized Lifestyles
SOCIAL
UGC Content
Blog
MARKETING
Target Marketing

WHAT ARE YOU DOING TO CREATE
RAVING FANS
A seamless shopping journey, customer service
and relevancy are the building blocks of a lasting
relationship.
From word of mouth in social circles,
quick check out and relevant content to
online ratings and reviews—consumers
trust Ashley HomeStore because we
know them and deliver a satisfying
shopping experience.
>> Social
>> Inspiration (video, images,
voice)
>> Customer Care/Live Chat
>> United commerce
>> Knowledgeable RSAs
>> Reviews/NPS/DNPS
>> Financing
>> On-time Delivery
ASHLEY HOMESTORE 15

WHERE DOES
STYLE
CALL HOME
When the first Ashley HomeStore opened 20 years
ago, consumer tastes were simply traditional,
contemporary or transitional.
Today, Ashley offers an impressive variety >> Interior Design Services
of lifestyle products and services to our
>> Trending lifestyles
global customer base. Our in-house design
(Urban Glam, Coastal Charm,
and merchandising teams are continuously
Rustic Industrial)
refreshing the product assortment with
the latest fashion trends so she’ll always >> Create Your Style Your Way
be delighted with what’s new in-store and
>> Room Packages
online. A new interior design service helps
consumers customize their look from >> DIY/Blog
room to room. Whether it’s a quick style
>> Nuvella High Performance
fix or total room package, customers shop
Indoor/Outdoor Fabrics
Ashley HomeStore for the styles they
want at an affordable price.
16 ASHLEY HOMESTORE

HOW DO YOU CREATE
QUALITY
IN EVERY PRODUCT
As designers, manufacturers and retailer,
Ashley’s mastered the art of creating quality
products at great prices.
Our design teams are continuously seeking ways to improve our
product assortments in Ashley testing labs around the globe. On the
manufacturing floor, we adopted more efficient practices to increase
output and maintain 100% out of the box quality.
>> Integrated Planning and Connected Factory Systems
>> Launching new PLM in 2018
>> RFID Tracking in Ripley and Arcadia
>> Investing in Bot Technology and Automation
18
ASHLEY HOMESTORE

WHAT IS THE
VALUE
OF DOING BUSINESS WITH ASHLEY
We have a proven formula for success. It helps owning
your HomeStore, running it, and growing it to be
profitable—a reality.
It starts with GMROI, an acronym for Gross Margin Return On
Investment. This performance indicator guides Ashley licensees
on how to manage their largest investment—product inventory—
for a higher turn rate and ultimately, higher profitability.
Two chairs. Same price. Same gross margin. Same unit
sales per month. Which chair do you want to sell?
20 ASHLEY HOMESTORE

CHAIR A
CHAIR B
Selling Price
Cost
Gross Margin
Gross Margin Percent
Sales per Month
Reorder Lead Time
Average Inventory
Gross Margin per Chair
Gross Margin x100 Chairs/Mo.
Annual Gross Margin-12 Months
Inventory (Avg. Inventory x Cost)
$200
$100
$100
50%
100 units
14 days
50 chairs
$100
$10,000
$120,000
$5,000
$24
$200
$100
$100
50%
100 units
140 days
400 chairs
$100
$10,000
$120,000
$40,000
$3
GMROI = annual gross
margin $ divided by average
annual inventory at cost $
Chair A
Chair B

400
MANUFACTURING &
DISTRIBUTION ACRES
UNDER ROOF
1 of 7 19+
PRIVATELY OWNED
INTERMODAL RAIL YARDS
IN THE U.S.
PRODUCT
CATEGORIES
80K
CONTAINERS
SHIPPED
4
FOOTBALL FIELDS =
LENGTH OF LONGEST
WAREHOUSE AISLE
30+
MILLION PIECES
DELIVERED ANNUALLY
$ 60M
95 %
TECHNOLOGY &
SYSTEM UPGRADES
ANNUALLY
DELIVERY TO
OF AMERICA
3.8M
SQUARE FOOT
ADVANCE, NC FACILITY

AHS VALUE
IN THE NUMBERS
On the supply chain side, Ashley HomeStore inventory
is supported by a global logistics system unlike any in the
furniture industry.
The combination of intelligent planning, strategic warehousing and an
efficient transportation system guarantees we’ll deliver the inventory
customers want as quickly and cost effectively as possible.
We’re working harder and smarter to be more customer centric:
>> Net Promoter Score (NPS) now 85%
>> Dispatch Track/High Jump Software = POI (Perfect Order Index)
>> Testing Free In-home Delivery + Expanded Delivery Times
ASHLEY HOMESTORE 23

HOW
COMMITTED
IS ASHLEY TO MY GROWTH
At Ashley, we recognize people are our greatest asset.
Whether you’re a licensee or sales associate, Ashley is committed to
helping you grow, succeed and better serve our customers.

ASSOCIATE GROWTH
AND TRAINING
Onboarding
Talent Development
ABLE (Ashley’s Blended Learning
Environment)
Ashley Leadership Institute
Tuition Reimbursement
LICENSEE SUPPORT
District Manager + IT Support
Regional & National Marketing
Merchandising Segmentation
In-store Training
Interior Design
www.GoHomeStores.com
HOMES Daily Operations System
ASHLEY HOMESTORE 19 25

WHERE ARE YOU
GIVING
TO MAKE A DIFFERENCE
When you shop Ashley, you are doing more than bringing
home a comfortable sectional.
Every wholesale and retail purchase has a ripple effect across our global
communities. Ashley Gives proudly champions social, educational,
environmental and health issues by devoting meaningful resources to
a variety of nonprofit initiatives. Here are just a few of our partnerships:
26
ASHLEY HOMESTORE

Hope to Dream
The ongoing mission of Hope to Dream is to donate beds
to under-served children and raise awareness on the
importance of sleep in a child’s growth and development.
A portion of every mattress purchase at Ashley HomeStore
supports this world-wide initiative.
City of Hope
City of Hope is a world leader in the research and treatment
of cancer, diabetes and other serious diseases. Our financial
support is accelerating the lofty goal of curing Type 1
diabetes in six years.
American Heart Association
Ashley’s Red Sofa Tour and fundraising efforts
are raising awareness and contributing to
the fight against cardiovascular disease,
the #1 killer of Americans.
Mayo Clinic
Educational Funding and
Scholarships
Habitat for Humanity
Operation Shut Eye
with Tempur-Pedic ©

YOU’RE WHY WE’RE
THE #1 HOME
FURNISHINGS BRAND
TRUSTED BY
MILLIONS
THANK YOU