In the four decades since the modern-day Ashley Furniture Industries was created, the company has gone on to conquer just about every sector of the business. It is the country’s largest furniture retailer, with serious global scale to boot—Ashley boasts more than 1,100 stores around the globe. And it has been enormously successful balancing domestic production with overseas sourcing, a mix few other furniture manufacturers have successfully achieved.

Most of this considerable success has happened in the low-to-middle end of the market. Which is why it was such a surprise to see the debut of Ashley Luxe in early April—a concept that seems poised to bring the company well out of its comfort zone.

Ashley Luxe is a full-line collection, including living, dining and bedroom furnishings and decor that will be available on the floor of about 70 percent of its locations around the country, inclusive of both enterprise and licensee locations, as well as online. And while the Luxe name clearly positions this above Ashley’s existing merchandise, it is by no means competing with higher-end retailers like Arhaus and RH when it comes to price point. The line’s sofas generally land in the $1,000 to $1,200 range; sectionals average between $2,900 and $6,000; and most beds and bedroom pieces come in at around $2,000. The numbers seem to suggest that Ashley knows its customers, and that a step into the upper price points of the furniture business might be too big a leap.

“Ashley Luxe is a way for us to extend our reach to new customers and for us to differentiate ourselves,” says Lisa Fanaro, Ashley Global Retail’s executive vice president of brand strategy and experience. “This is an opportunity for us to transition beyond the opening price point and moderate business we’ve been in.”

The products are coming through Ashley’s existing production supply chain, relying on both domestic manufacturing and imports. “Being vertically integrated has been a big help on our pricing of Luxe,” says Fanaro.

In its stores, Luxe gets a dedicated area with its own signage and point-of-purchase materials. It will often be one of the first things shoppers will see when they enter an Ashley store, as it is in the Las Vegas flagship that opened last year. To attract customers and industry buzz, the company rolled out a dedicated Ashley Luxe marketing and advertising campaign earlier this month featuring actress and singer Hailee Steinfeld as the face of the new program.

“Ashley Luxe represents an exciting expansion of how we serve our customers and elevate the home experience,” said Todd Wanek, president and CEO of Ashley Furniture Industries. “Grounded in the quality, comfort and value the Ashley brand is known for, this collection delivers a more elevated design expression, with craftsmanship and details that feel refined—while remaining within reach.”

It’s that step up that gives Ashley Luxe its identity, Fanaro said. “The timing of this introduction is very intentional,” she explains. “We believe the consumer today is more discerning. She wants better value without compromising style and quality. She wants luxury at a price.”

The move could be the family-owned company’s biggest challenge yet—and one of its biggest opportunities.

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Warren Shoulberg is the former editor in chief for several leading B2B publications. He has been a guest lecturer at the Columbia University Graduate School of Business; received honors from the International Furnishings and Design Association and the Fashion Institute of Technology; and been cited by The Wall Street Journal, The New York Times, The Washington Post, CNN and other media as a leading industry expert. His Retail Watch columns offer deep industry insights on major markets and product categories.