Specialists jump ahead, distribution report reveals
David Perry, Executive editor -- Furniture Today, August 10, 2009
Our just-published report on bedding distribution channels identifies some clear winners, some clear losers, and some channels clearly holding their own. And there are lessons to be learned on each count.
The winners: Bedding specialty stores and warehouse membership clubs. Each of those channels gained one percentage point of market share, a $107 million slice of a $10.7 billion retail bedding market.
While one major bedding producer questions whether a one-point gain is significant in this economy, he is missing the point of our distribution report, which is to bring clarity to the market and identify key trends. In that context, yes, a one percentage point change is meaningful, especially when sales are on the downswing. Retailers growing in a down market are worth emulating.
The reasons for the growth of the bedding specialists are obvious — and compelling. For starters, they advertise the category more consistently than other types of retailers. They offer a wider selection of mattresses, have better-trained sales associates, know what products consumers want and are quicker to seize opportunities, producers say. See any business-building ideas there?
The warehouse clubs are growing primarily because they offer a strong value proposition, and consumers are gravitating to values like never before, producers say.
The losers: Department stores and factory-direct operators, which each gave up one point of market share in the last two years. (We do our distribution study every other year. Our most recent report, published in our July 27 issue, reflects changes from 2006 to 2008.) Department stores are losing ground because they emphasize bedding only occasionally and are seen as too high priced, among other problems. And factory-direct retailers generally haven't been able to generate critical mass in major markets.
Those holding their own: Furniture stores, the direct-to-consumer channel, and the “other” segment, consisting of furniture rental stores, Big Lots and HH Gregg, among others. The big news there is that the furniture store channel, once the largest channel for mattress sales, holds steady with a 39% share, three percentage points less than the share enjoyed by bedding specialists.
Some furniture stores are gaining ground with a strong focus on mattresses, but the category also has seen some notable failures. Overall, however, the segment remains a vital one and could even gain share in the years to come, our interviews with leading producers suggest.
Looking for a sleeper for the future? Internet sales offer plenty of promise.
We're preparing more stories on the key channels of mattress distribution. Look for them in the weeks to come.
Contact David Perry at dperry@reedbusiness.com
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