Space-saving, functional, flexible, beautiful. Those are a few key requirements of homeowners today as they try to organize increasingly smaller living areas. In a continuing trend noted by the National Association of Home Builders (NAHB) and real estate companies and organizations, the desire for large McMansions has shifted to homes with smaller square footage.
This changing attitude can be attributed to a number of factors including the large number of baby boomers who are reaching retirement age and no longer need as much space.
However, Murphy bed systems are not only seeing new life because of smaller homes. Multifunctional rooms have become necessary as the boomerang kid effect grows – young adults moving back to their parents’ home to make ends meet.
Murphy Bed Impact
Perhaps there is no greater proof of the rise of Murphy beds than the Nov. 2013 acquisition of More Space Place, a Murphy bed franchise, by Closet & Storage Concepts of West Berlin, NJ.
“One of the most appealing aspects of the acquisition was that More Space Place has developed a very strong business in the Murphy bed category,” says Bob Lewis, president and CEO of Closets & Storage Concepts. “That category is increasingly popular as the consumer views space-saving products as being more important in home decor decisions and as housing in general tends to shrink.”
Another key factor in the buyout was the fact that none of More Space Place’s locations directly competed with Closet & Storage Concept’s franchises. The acquisition of the Murphy bed firm’s 28 locations makes Closet & Storage Concepts one of the largest home organization companies in North America, Lewis notes, creating a “natural synergy” between the brands.
Both companies will continue to function as separate units going forward, taking advantage of each firm’s strength in Murphy beds and in the closet and garage categories. As for the long-term strategy, Lewis says there will be opportunities to integrate aspects of both brands into each business.
“As we identify those opportunities, we will try to take advantage of them,” he says. The combined firms have revenues of approximately $40 million with more than 400 employees and a total of 39 locations in North America.