Multi-channel Retailer LoveSac Focuses on Ecommerce Growth
CHALLENGES: In order to grow LoveSac’s online sales, the company needed to evaluate and upgrade their current ecommerce strategy.
BUSINESS OUTCOME: LoveSac has grown annual ecommerce and retail sales by 40 percent for the five consecutive years. They have also seen website speed improvement of up to 20 percent since moving content to the Rackspace cloud.
Rackspace enables LoveSac’s online business platform in the cloud.
LoveSac founder, Shawn David Nelson started the modern day beanbag revolution by making the first gigantic LoveSac fresh out of high school in 1995. LoveSac is not just another furniture retailer, or brand of bland designs. Each core LoveSac product is an original furniture invention with the patents to prove it. LoveSac’s latest invention, Sactionals, can be combined to build any furniture desired, including chairs, sofas, chaises, and ottomans.
Darren Johnson, director of ecommerce at LoveSac, explains, “LoveSac is a multi-channel retailer. We’ve been around for about ten years, with more than 50 retail stores throughout the country. We’ve grown annual sales by 40 percent for the last five years — on both the retail and ecommerce side — very aggressively.”
MAGENTO SOLUTION POWERED BY RACKSPACE
As the LoveSac market has shifted to online, the company has transitioned and been more focused on ecommerce.
The expectation at LoveSac is that the online portion of the business will do as much in annual sales as their 50 stores combined within three to five years. In order to accomplish this aggressive transition, LoveSac combines leading open-source ecommerce platform Magento with Rackspace — the #1 hosting provider to the top 1,000 retailers1 — for a high-performance online store.
“Previously, we were on an antiquated ecommerce platform,” says Johnson. “We were with a second-tier hosting provider and found Magento and loved it. As we upgraded to Magento Enterprise, our solutions partner recommended Rackspace as somebody that we needed to look at as part of our upgrade.”
“The thing I love most about Magento is the flexibility and ease of managing products and content,” says Johnson. “It’s really the ecosystem for anything in ecommerce that you want to do. You don’t need to build everything in-house.”
GROWING WITH THE RACKSPACE CLOUD
Growing annual ecommerce sales by 40 percent for the last five years has required major scalability. “As we’ve grown with Magento, we’ve had to scale our infrastructure at the same time,” says Johnson. “So every time we’ve done that, our Magento partner has worked really closely with Rackspace in architecting a solution that will scale with our business.”
“One of the things that we’ve done that have helped a lot as we’ve grown is moving over content to the Rackspace Cloud,” says Johnson. “We’ve seen speed improvement of up to 10 to 20 percent since moving our content to the cloud, which has been great for us. We do 40 percent of our annual sales from Black Friday to Christmas. It’s really important for the merchant, the solutions provider, and the hosting provider to have all of your bases covered when preparing for traffic spikes.”
“We consider Rackspace part of the team,” concludes Johnson. “They actually came up with a custom solution for us, to get more of our content on the cloud, to speed up the site and to do additional optimizations. Rackspace has been there along the way with really great support.” Anytime that we have run into issues, the support’s been phenomenal.
1 Internet Retailer’s newsletter “Introducing the Top Vendors to the Top 1,000”
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