Producers share views on sales performance
By David Perry -- Furniture Today, November 23, 2003
High Point — By their own accounts, leading bedding producers enjoyed solid years in 2002.
All of the Top 10 producers reported sales increases last year, ranging from a modest 0.3% gain at Serta to a stellar 12.1% increase at Spring Air, according to the companies themselves. (Furniture/Today's estimate put Spring Air's gain at 9.3%.)
According to the International Sleep Products Assn., the industry's dollar volume last year increased 3.8%. Producers who grew faster than that, such as Sealy, gained ground.
"We're pleased that Sealy gained market share in 2002, despite the challenging economic conditions that prevailed through the year, and the issues we faced with the changes at our two largest accounts," said Dave McIlquham, Sealy's chief executive officer.
Sealy was up 4.8% last year, according to accountant-verified numbers.
One-sided line to fuel growth
McIlquham said the introduction of a new one-sided Posturepedic line this summer and the October introduction of "a completely new" Stearns & Foster line "will drive our continued growth in market share."
Serta, which saw overall sales eke ahead by 0.3%, also believes it is positioned for growth.
"Serta had an excellent year last year, all things considered," said President Ed Lilly. "This year, Serta is poised for market share gains based on the stronger, more consolidated nature of our company.
"Being the 'brand of choice' for one- and two-sided mattresses sets us apart from our major competitors and gives us the opportunity to expand our business with our two-sided products."
Simmons, which said its 2002 sales grew by 4.6%, had "a tremendous year," said President Bob Hellyer. "Our volume was still affected by the (earlier) bankruptcies of key accounts such as Wards, Heilig-Meyers and Sears Homelife. We more than made up $110 million of lost business."
Mix and size key for Simmons
The key for Simmons, Hellyer said, "was selling mix and size. Olympic Queen continues to drive super-size sales. Our average unit selling price was up dramatically. Manufacturers have been on a three-year run in the bedding industry where units (transactions) have been basically flat.
"The best way to increase the top line with the same number of outlets is to sell size or mix. We continue to drive both through innovation."
Spring Air President Jim Nation said the company's strategy of developing and marketing a variety of brands has been a key to its strong growth.
"I think our portfolio marketing has resonated with retailers, and it has allowed us to get additional collections on the floor as well as to add new retailers," he said.
Nation said Spring Air is doing well in all areas of its business. "The high-end parts of our collections are going well," he said. "We also are having growth at lower price points. It's like bingo. We've got success in everything you can measure."
King Koil, which moves into the No. 5 spot this year, had an 8.3% sales gain last year, according to President Larry McKay. "The industry is seeing that there's a new King Koil," he said. "That opens some doors to us and creates discussions with retailers we haven't sold in the past."
King Koil also was aided by the group's "significant success" with new national lines it introduced early last year, McKay added.
Latex sparks Therapedic
Therapedic, which said sales jumped 6% last year, was helped by the strong performance of its PureTouch latex bedding line.
"I think we did surprisingly well considering the economy," said President Michael Pino. "Our non-latex bedding did well, but the latex line really gave us a shot in the arm."
Therapedic has added key national accounts and is well positioned for more growth, Pino said.
Englander, which said sales were up about 7.7% in 2002, is benefiting from a new ownership umbrella. The brand was acquired last year by England, an upholstery producer with its own bedding line.
"We have a unified marketing direction," said Vice President David Clark. "That has moved us forward. Everybody is very positive about our new direction."
Kingsdown, which said it had a 4.1% sales increase last year, used 2002 to prepare for substantial growth.
"Last year was a positioning year," said Kingsdown President Pat Flippin. "We used the year to position ourselves as a dominant player in accounts that we partner with. The success we have had positions us for a tremendous year this year."
Kingsdown's Dormo Diagnostics program, which helps consumers find a bed designed to meet their needs, has been "phenomenally successful" when given the proper retail support, Flippin said.
Restonic, which reported sales were up 8.4% last year, did well with its specialty bedding products and a re-emphasis on direct-mail promotions, said President Ed Scott. "The more you promote, the more you sell," he said.
The company saw pronounced geographical differences in its business.
"In some parts of the country, we were up very strongly," Scott said. "In other parts, we were down. It was a very erratic year."
Lady Americana, which said sales grew 8.5% in 2002, was pleased with its progress.
"2002, for all its uncertainties, was a year of opportunity for Lady Americana," said President Kerry Tramel. "Many retailers who had not looked at bedding alternatives for years began to see what else was available."
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Producers share views on sales performance
Jun 22, 2003
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