The Brick rolls out 6 sleep shops
By Michael J. Knell -- Furniture Today, September 5, 2005
Toronto — The Canadian bedding retail wars have begun in earnest with the rollout of the first six Sleep Better Mattress Co. stores here in this country's largest consumer market.
Sleep Better is the fourth banner of the Brick Group Income Fund, already this country's largest furniture and bedding merchant through The Brick and United Furniture Warehouse, finance-oriented, high-impact promoters in the promotional to mass-market price points.
"We are a division of The Brick but we're really a separate company," said Armando Murillo, the fledgling chain's general manager. "We're focusing on the consumer that wants the specialty store experience. I don't think the customer that shops at The Brick will necessarily shop at Sleep Better. We're taking a totally different approach to business."
Murillo, a former U.S. mattress manufacturing executive, is confident Sleep Better won't poach bedding sales from The Brick but will take market share from those targeting the same consumer, particularly Sleep Country Canada and, to a lesser extent, Sears Canada.
Sleep Country Canada pegs its share at nearly 20% of a retail market valued at about C$1 billion. Industry sources give Sears Canada about an 18% share, with The Brick now at 12%. Other important bedding merchants include Leon's at about 7%, and department store The Bay and Quebec's Brault & Martineau, both at around 8%.
Two more Sleep Better stores will open in Ontario's Oakville and Brampton in coming weeks, with at least four more slated in currently undisclosed locations before year's end. Brick Group President and CEO Kim Yost says the goal is to have 100 stores across the country within three years.
The first six are in Newmarket, Aurora, North York and Pickering, and two in downtown Toronto.
"We will be in locations where the Canadian consumer enjoys shopping for the type of product we provide," Murillo said, including shopping centers and freestanding sites, and definitely in Quebec, a market Sleep Country has yet to tackle.
The stores range from 2,800 to 4,300 square feet, displaying 43 models from C$399 to C$3,999 in queen. That's about twice the size and twice the SKUs of a typical Brick bedding department. UFW also has begun selling some promotional bedding. The Brick Group's other banner is HomeShow Canada, with its Mattress World gallery presentation.
Each Sleep Better store is brightly lit and features a gentle, sage-like green. "We've tried to create an environment that is fresh, memorable and speaks of quality," Murillo said. "We want to project a contemporary, warm and soothing environment that will enhance the product on display."
In addition to Simmons, Sealy and Serta, Sleep Better offers Jaclyn Smith's Home Bedding Collection by King Koil Canada, and Chatham & Wells and Luxuriance, the latter two lines made by Spring Air Canada.
Luxuriance is a new high-end line exclusive to Sleep Better in Canada, while Murillo plans to use Smith's line as the major differentiator between Sleep Better and Sleep Country.
Accessories offered include mattress pads and pillows, and limited selections of linens, metal head and foot boards, and a small assortment of sofa-sleepers.
Sleep Better stresses a lifestyle approach to merchandising — "People recognize the need to sleep better," Murillo said — and offers free, same-day delivery with setup and removal of old bedding, free lifetime warranties on beds over C$999, and a private-label credit card with no payments and no interest until 2007 on purchases made during the grand opening period.
"What we're offering is better pricing, better selection, better service and financing," Murillo said.
He believes there's more than enough room for Sleep Better and Sleep Country to thrive. "In any market, there's an opportunity for two key players," he said. "More than that is difficult for the consumer to understand."
Murillo also cites a growing penchant for specialty stores on the part of consumers with less and less time to shop. "The shopping experience has to be both effective and fast," he said. "There's already a lot of specialization in the industry, and it's growing."
