Specialty stores capture one-third of bedding purchases
By Furniture Today Staff -- Furniture Today, September 19, 2004
Nearly one-third of all bedding purchases were made in a specialty store in 2002 and 2003, making it the second-largest channel for bedding purchases. The top channel is furniture stores, accounting for 38% of bedding purchases.
Half of all mattresses purchased in a specialty store are queen-sized. The channel accounts for more than one-fourth of all queen-size mattresses purchased in 2002 and 2003. Specialty stores also own a significant portion of the twin-sized market, accounting for 31% of all twin purchases.
As with all bedding purchases, the shopping cycle at specialty stores is short. More than half of households buying at a specialty store shopped for less than a month before making a bedding purchase. Another 30% shopped for one to three months, and 17% shopped four or more months before buying.
Only 9% of households that bought in specialty stores are buying bedding for the first time. As with buyers in other channels, replacement cycles among repeat buyers are extremely long. Nearly two-fifths of households buying in a specialty store replaced a mattress that was more than 15 years old. Almost one-fourth replaced a 10- to 15-year-old mattress.
| Bought at a specialty store | |
|---|---|
| Less than 2 years | 14% |
| 2 to 5 years | 10% |
| More than 5 years but less than 10 | 14% |
| 10 to 15 years | 24% |
| More than 15 years | 38% |
When it comes to meeting delivery expectations, specialty stores are doing well. More than half of specialty store buyers thought one to two weeks between order and delivery is reasonable. Another one-fourth believed three to four weeks is a reasonable time. In reality, delivery time was shorter. More than one-third of households received product in less than one week and 30% of ordered bedding was delivered in one week.
Specialty-buying households rank competitive prices and the store's selection as the most important factors when deciding where to shop for bedding. They are also influenced by the store's reputation and the employee's product knowledge. These factors are the same as households that bought at a furniture store, although furniture store buyers gave the store's reputation and selection a slightly higher rank.
Nearly half of specialty-store buyers are buying for themselves and their spouse; one-fourth are shopping for their children. The children's ages are varied, with two-fifths between the ages of 2 and 7, one-fifth between 8 and 12, and one-fifth between 13 and 18.
Bedding spending at specialty stores naturally varies by the size of the mattress purchased. When analyzing medians, households spent more for twins, queens and kings at specialty stores than through other channels. For example, specialty-buying households spent a median of $800 on their king purchase, compared with a median of $700 spent on kings through all channels.
The amounts households spent on queen-size bedding at specialty stores run the gamut — one-fourth spent under $300 and 21% spent $1,000 or more. The 21% spending $1,000 or more is slightly higher than the 17% of households that shelled out big bucks for a queen through other channels.
The specialty store consumer
Two-fifths of households buying in a specialty store are baby boomers. The channel is more popular among the younger baby boomers, those born between 1956 and 1964, with one-third of all bedding-buying younger boomers purchasing at a specialty store.
Specialty stores also are a popular choice among younger households. More than two-fifths of bedding buyers belonging to Generation Y purchased in a specialty store in 2002 and 2003, making it the top choice for the group. By comparison, one-third of Gen Y purchased bedding at a furniture store. Born between 1976 and 1985, Gen Y is 76 million strong — more than the number of baby boomers — and comprises 27% of the U.S. population. As the oldest turns 28 this year and the youngest turns 19, Gen Y is buying homes, starting families and beginning to establish themselves in the workforce.
Household incomes among specialty store buyers are slightly skewed towards the middle. Two-fifths of specialty store buyers have incomes between $40,000 and $74,999. Additionally, one-third of bedding-buying households in this income bracket purchased through a specialty store. Specialty stores also captured the bedding business of 27% of higher-income households — those with incomes of $75,000 or more — while furniture stores captured 37% of their business.
Households in the West and South are more likely to purchase bedding at a specialty store than households living in other regions.
Minorities comprise only a small portion of specialty store buyers. Only 17% of bedding-buying African-American households purchased through a specialty store, and only 21% of Hispanics did, compared with 31% of white households. Specialty stores would appear to have a great opportunity to lure more minorities into their stores.
Other characteristics of specialty store buyers:
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64% are between the ages of 25 and 54.
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47% are parents with children living at home.
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81% live in a house, 7% live in an apartment and 7% live in a condominium.
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58% are married, 20% have never been married, and 22% are either divorced, widowed or separated.
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54% live in a market with 2 million or more people.
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32% have incomes under $40,000, 40% have incomes between $40,000 and $74,999, and 28% have incomes of $75,000 or more.
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78% have Internet access.
| Where specialists rank on the 2003 Top 25 Bedding Retailers list | |||
|---|---|---|---|
| Rank | Company | Homebase | 2003 estimated bedding sales in $ millions |
| 1. About 82% of Select Comfort's 2003 retail sales came from retail stores, 14% from direct marketing and 4% from the Internet. 2. About 35% of Dial-A-Mattress's 2003 sales came from stores, 62% from telemarketing and 3% from the Internet. Figures are based on estimated 2003 sales of conventional mattresses and boxsprings, as well as foam bedding, futons, air beds, adjustable beds and waterbeds. Estimated figures do not include sales of headboards, frames, mattress pads, pillows and other related products. All sales information, except for that supplied by publicly held companies that break out bedding sales, are Furniture/Today market research estimates. All data are for calendar 2003. |
|||
| 1 | Select Comfort1 | Minneapolis | $428.2 |
| 2 | Mattress Firm | Houston | $260.0 |
| 3 | Sleepy's | Bethpage, N.Y. | $253.0 |
| 6 | Mattress Giant | Addison, Texas | $188.0 |
| 9 | The Sleep Train | Citrus Heights, Calif. | $140.0 |
| 11 | Rockaway Bedding | Randolph, N.J. | $111.0 |
| 14 | Mattress Discounters | Upper Marlboro, Md. | $100.2 |
| 17 | Dial-A-Mattress2 | Long Island City, N.Y. | $87.0 |
| 19 | Sit'n Sleep | Carson, Calif. | $74.4 |
| 25 | Sleep Country USA | Kent, Wash. | $53.0 |
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Alternative stores grab 13% of bedding purchases
Nov 21, 2004
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