Only five majors gained share last year, study says
David Perry, Executive editor -- Furniture Today, June 21, 2004
Our latest top bedding producers ranking, published in the May 31 issue, contains some interesting information.
Generally speaking, the big guys lost some ground to the smaller guys in 2003, something that doesn't usually happen. And two newcomers to our list made major strides in the industry.
It all added up to a somewhat strange year, one that just goes to show that the bedding industry is still capable of producing some surprises.
The only top company with a sales decline last year, our study revealed, was industry sales leader Sealy. Its sales were down 2%. It's rare that Sealy loses ground, but that producer had some big loses as a result of changes at two of its biggest retailers.
Sealy's performance last year was actually a very strong one, considering what it had to overcome. Its overall $22 million sales decline is less than half the size of the hit I originally forecasted Sealy would take. Sealy's new Posturepedic line made impressive gains in the last four months of the year.
Still, sealy lost some market share last year. But so did some other heavy hitters, including Serta, whose sales were up 2.2% for the year, and Spring Air, whose sales were up just 0.9%, according to our study. The International Sleep Products Assn. said sales last year increased overall by 5.8% in dollars.
Using that as our benchmark figure, only five of the 13 companies on our Top 12 list (there was a tie for No. 12) gained market share last year. Tempur-Pedic's sales were up 88% to $188 million, and Select Comfort was up 32.2% to $197 million. Simmons was up 12.2% to $790 million, Therapedic was up 7.4% to $116 million, and Lady Americana was up 6.3% to $68 million.
Each of those performances is noteworthy. The growth recorded by Select Comfort and Tempur-Pedic is staggering, and shows the power of their marketing campaigns. Furthermore, their specialty sleep products are resonating powerfully with consumers. We probably should have added those companies to our market share study last year.
Among the Big Four, Simmons was the big winner. Its double-digit performance vaulted it ahead of Serta into the No. 2 sales slot. This is a company with plenty of momentum. Its ability to consistently raise its average unit selling price is envied by many.
The top bedding producers ranking is only a snapshot in time, and it's worth noting that a number of majors say they are recording unusually robust sales so far this year. Sealy, for one, says it is gaining market share once again.
So take a good look at the numbers, but remember that change is the only constant. Last year's winners will have to be very good this year to be winners once again.
