Sleep Country Canada enters Winnipeg market
By Michael J. Knell -- Furniture Today, September 5, 2005
Winnipeg, Manitoba — Sleep Country Canada has entered its eighth regional market, opening the first three of a planned six stores and a distribution center here.
This country's largest bedding specialty chain has opened units in the Transcona, Unicity and Garden City districts. Stores in the Kenaston, Polo Park and St. Vital areas are expected to open before the end of the year.
Since going public as an income trust in April 2003, SCC also has opened 12 in-fill stores in seven regional markets — Vancouver and Vancouver Island, British Columbia; the interior of British Columbia; Edmonton and Calgary, Alberta; and southwestern Ontario, Toronto and Ottawa.
"By the end of the year, Sleep Country will have increased its store count by 25% since we went public," said Chairman and CEO Steve Gunn.
At the end of June, SCC operated 101 stores. It has no presence in Quebec or Atlantic Canada, but both Montreal and Halifax are on the company's short list for expansion.
"Sleep Country believes it is the No. 1 mattress retailer in the three provinces in which it currently operates," Gunn said. "Sleep Country estimates that it has achieved an approximately 19% national market share and believes it commands a leading market share in the seven regional markets it services."
For the first six months, Sleep Country said sales rose 11.3% to C$98 million, with same-store sales growth of 7.1%. "The number of mattress sets delivered increased by 12% in the first six months of 2005," Gunn said.
He said the overall mattress industry had flat to slightly positive growth during the second quarter, and thus SCC believes it has gained market share.
As part of its Winnipeg grand opening, SCC launched two charitable initiatives, Backpacks for Kids and the Donated Bed program. The former assists grade-school students who can't afford school supplies. The latter encourages customers who buy new bedding to donate their old bedding to charity.
