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Brick-and-mortar isn’t dead. Aloof ask Lee Bird, the CEO of At Home Accumulation Inc. (HOME) .

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The Plano, Texas-based home appurtenances abundance saw net sales abound 25% in the third quarter, and that’s after an e-commerce platform. With 144 food beyond the country now, the ambition is to ability 600.

And as for artifice the blackmail of Amazon, Bird said he isn’t too concerned. For now, the banker has no affairs to about-face to agenda any time soon, aloof like its adversary Home Goods (owned by TJX Cos. (TJX) ). Read the abounding account below, in which he talks Millennials, absolute acreage and why he’s such a big fan of Sears Holding Corp. (SHLD) .The account has been abridged and edited for clarity.

It seems like the absolute home capacity industry is advancing appropriate now. What are some of the factors active that?

People are disportionately spending against their homes—especially Millennials. They adulation to entertain, they adulation to accept bodies over, and they’re the better spending accumulation out there appropriate now and about a third of our amount customers. But not anybody is on the aforementioned arena field. The amount players are winning: us, Home Goods, and Wayfair Inc. (W) .

But isn’t it that Millennials aren’t affairs homes?

We’re doubter about how Millennials live. They can accept an apartment, they can alive in a commune—however they live, they do like to decorate. They accept a abundant eye, they adulation to accept accompany over, and they watch “HGTV.” We’ve got an array that works with baby amplitude living, alike baby patio sets.

Your food are sometimes 100,000 aboveboard anxiety or bigger. Accept you anticipation about activity small-format, which seems to be a huge trend appropriate now for retailers?

Our cast is everyman prices, better assortment. We accept 50,000 items at any accustomed time. That’s 400 to 500 new items a week. We charge a abundance big abundant to backpack all those styles, so back you and I boutique together, we can accompany our moms, too, and all of our tastes are represented. We accumulate the central of our food like a warehouse: bare-bone boxes, accurate floor, metal boxes. And we accumulate the hire low.

Tell me added about your absolute acreage strategy.

We hire from all the big box players: Sears, Target Corp. (TGT) , Wal-Mart Food Inc. (WMT) , Hope Depot Inc. (HD) , Lowe’s Cos. (LOW) , Macy’s Inc. (M) , Dillard’s Inc. (DDS) and Kohl’s Corp.  (KSS) . Sears is our best freeholder because they’re closing so abounding stores. Some retailers don’t appetite to be a landlord, so we buy from them.

Two-thirds of our absolute acreage is second-generation retail. About a third we congenital ourselves. Our access is two-step: We already mapped out breadth our aboriginal 600 food beyond the country should be by anecdotic submarkets, as able-bodied as over 20,000 absolute big-box locations beyond the country. Next, let’s say Kmart calls us and says they’ve got a abundance for us in a assertive area. We attending at our plan and if it’s in the appropriate market, we booty it.

It seems like absolute acreage is an capital aspect of your business strategy.

Real acreage is a amount capability. We’re absolutely acceptable at it. We additionally assignment with bounded brokers to get specific bazaar intel. The best retailers are absolutely acceptable at absolute estate.

Are you anxious that At Homes won’t be able to attempt with the cast of Inc. (AMZN) after an e-commerce platform?

We accept all our array online because we apperceive anybody pre-shops, and our website is mobile-enabled. Our barter appetite to see, touch, and feel the products. We’re a appearance player.Think of us as the Forever21 of home decor. But bodies feel safe advancing into our stores, because if they’re attractive for a chicken pillow, that blush is activity to attending altered on your awning than mine.

We’re additionally growing 20% percent after e-commerce. If we weren’t, again we’d be attractive at altered bartering strategies.

So you’re not afraid about Amazon?

We’re consistently alert of Amazon. We’re alert of every amateur out there. But the industry is awful fragmented, and no one has added than 5%. If you add up Amazon and Wayfair combined, it’s beneath than 5%. I would say we accompaniment the online guys. Wayfair focuses on big furniture, so back a chump buys a big allotment from them, they appear to us and aces an emphasis color.

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What’s the better business development are you focused on now?

Geographic expansion. We don’t accept a abundance abreast you yet [in New York City], but we will abutting year. We appetite to be in at atomic 48 states. Our aggregation wants to go to Hawaii but I don’t anticipate that’ll appear soon. We’re focused on active a abutting accord with our customer—we aloof launched a acclaim agenda and adherence program. We’re focused on convalescent our assortment. We’re focused on absolute sourcing. We’re growing, beginning banker and we’ve got to actualize cast awareness.

What are some of your better artefact trends?

Right now, we’re in the anniversary division and we accept a actual ample melancholia business. We accept 118 styles of bogus Christmas copse appropriate now. In the spring, it’s patio furniture. Bodies are into the abreast style, that actual industrial, flat attic look. Anticipate steel-and-wood, like a rolling coffee table with a afflicted top.

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