Ashley HomeStore in the Medford Center will move into a 50-percent larger store next year at the former Costco building on Highway 62.
"We've been looking for an ultimate location for quite a while," said Brent Loogman, who runs the furniture store with his wife, Rochelle, who is the company buyer.
The current building is 32,000 square feet, but the new location in the right half of the Costco building will boost their space 47,000 square feet.
Hobby Lobby will occupy the other part of the former Costco building.
Some of the biggest Ashley HomeStores are 60,000 square feet.
Loogman said the economics of Southern Oregon show that a larger store is warranted, particularly a store with a greater amount of inventory that includes an expanded outdoor section. Last year, the store unveiled its outdoor furniture offerings.
"We feel we're doing a disservice to the area and to the consumers with what we have," he said. "This area is very, very strong."
The new location, which will have a new façade and interior treatment, will allow for easier access to customers and is located in a better shopping area, Loogman said. In addition, the signage on the current location, which Ashley has leased since 2004, is outdated.
To bring the current building up to the new standards, it would require an outlay of $300,000 to $400,000, Loogman said.
The new building along with the renovation will cost in excess of $2 million, but will allow for a far greater inventory.
Loogman expects it will cost $1 million for furniture at the new building.
"We hit every possible style there is," he said.
At the current location, the furniture stock will be sold in a liquidation sale.
Ashley is open from 10 a.m. to 7 p.m. seven days a week, but Loogman said he plans to extend the hours later into the evening by one or two hours at the new location.
With 42 people working at Ashley now, Loogman expects to add another dozen once he makes the move.