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No. 1 Select Comfort widens lead at $588M
Top six positions unchanged; department store channel suffers only decline
By David Perry -- Furniture Today, August 13, 2006
High Point — Fast-growing airbed retailer Select Comfort soared above the competition again in 2005 to remain No. 1 on Furniture/Today's list of the Top 25 U.S. bedding retailers.
Minneapolis-based Select Comfort, which also makes airbeds, added more than $100 million in retail revenues last year, vaulting from $487 million in 2004 to $588 million in 2005, and widening its lead over the rest of the bedding field. It added 26 stores last year, grew its bedding revenues by 20.7%, and stands unchallenged atop the Top 25.
It was, obviously, a notable year for Select Comfort, honored by Furniture/Today as a Retail Bedding Giant for its stellar performance.
Other Top 25 stores honored as Retail Bedding Giants by Furniture/Today are The Sleep Train and Sit 'n Sleep.
The top six positions on this year's list are unchanged from last year.
No. 2 Sleepy's, the Bethpage, N.Y.-based sleep shop chain, enjoyed another strong growth year and generated bedding revenues of $374 million, up 21.4%.
In the No. 3 slot is Houston-based Mattress Firm, which posted a 20.1% sales increase and finished the year with bedding revenues of $328 million.
Federated Department Stores had a 12.5% bedding increase last year and finished the year at $288 million, good for No. 4. Sam's Club, in the No. 5 position, was up by 6.9% and generated bedding revenues of $265 million.
In the No. 6 position is Addison,Texas-based Mattress Giant, which had an 8.2% increase and recorded bedding revenues of $199 million.
The Sleep Train, based in Citrus Heights, Calif., moves up one position this year to No. 7, with bedding revenues of $192 million. That retailer is poised to chug ahead big-time next year with its planned acquisition of Sleep Country USA, a 55-store chain based in Kent, Wash.
Sleep Country ranks No. 24 on this year's list, with bedding revenues of $76 million.
In the No. 8 slot is Serta's sleep shop network, which generated bedding revenues last year of $190 million.
Berkshire Hathaway's furniture division, which consists of Nebraska Furniture Mart, R.C. Willey, Star Furniture and Jordan's Furniture, enjoyed a good year in bedding. Its 15.4% increase boosted total bedding sales for the division to $180 million, good for No. 9 on the list.
The Top 10 is rounded out by room-package powerhouse Rooms To Go, whose bedding revenues were $160 million last year, up 6.7%.
Collectively, the Top 25 had bedding sales of $4.2 billion, an 11.2% increase over 2004.
The biggest growth story on the list is No. 11 Ashley Furniture HomeStores. That network of stores added 66 units last year and saw its bedding revenues leap 75% to $140 million.
Fueled by that sizzling performance, furniture stores set a stronger growth pace than did bedding specialty stores, who traditionally have been the fastest-growing channel of distribution in the bedding arena.
The six furniture stores on the Top 25 — the Berkshire Hathaway unit, Rooms To Go, Ashley HomeStores, Slumberland, Art Van and Havertys — together recorded bedding sales growth of 17.7% last year. The 12 bedding specialists on the list were close behind with 15.3% sales growth.
The only channel of distribution to post a sales decline last year was the department store channel, down 7.1%. May Department Stores' 46.8% sales decline and a 4.4% dip at Sears — the only two sales drops among the Top 25 — pushed that channel into negative territory.
New to the list this year is discount department store Big Lots, coming in at No. 25. The closeout specialist is the only discount department store on the list, and it pushed Wal-Mart, No. 25 last year, out of the rankings.
Warehouse membership clubs, represented on the list by Wal-Mart-owned Sam's Club and Costco, collectively posted an 8% sales gain last year.
Once again, there were more bedding specialists on the Top 25 than any other type of retailer. The 12 on the list are Select Comfort, Sleepy's, Mattress Firm, Mattress Giant, The Sleep Train, the Serta sleep shops, Rockaway Bedding, Dial-A-Mattress, Mattress Discounters, Sit 'n Sleep, Tempur-Pedic and Sleep Country USA.
| Top 25 bedding retailers | |||||||
|---|---|---|---|---|---|---|---|
| Rank | Estimated bedding sales in $ millions | Percent change | Number of units at year's end | ||||
| 2005 | 2004 | Company, home base | 2005 | 2004 | 2004 to 2005 | 2005 | 2004 |
| All sales information, except for that supplied by publicly held companies that break out bedding sales, are Furniture/Today market research estimates. All data for calendar 2005 and 2004, unless otherwise noted. Source: Furniture/Today market research R = Revised NS = No stores NR = Not ranked |
|||||||
| 1 | 1 | Select Comfort, Minneapolis | $588.0 | $487.0R | 20.7% | 396 | 370 |
| Publicly held, vertically integrated airbed maker and retailer selling Sleep Number brand mattresses and foundations through its stores, e-commerce site, direct-marketing call center and wholesale business (which sells to home furnishings and specialty bedding retailers and the QVC TV shopping channel). Sales from its wholesale business are not included. In 2005, opened 40 stores and closed 14, and added bedding specialists Mattress Firm and Sleepy's to its roster of retailers offering Select Comfort product. Plans to open a total of 40 to 45 net new stores in 2006, with a net six stores opened in the first quarter. Bedding accessories accounted for about 8% of total sales last year. Total revenues in 2005, $691 million, up 24% from $558 million in 2004. | |||||||
| 2 | 2 | Sleepy's, Bethpage, N.Y. | $374.0 | $308.0 | 21.4% | 375 | 318 |
| Bedding specialty chain in metro New York, New Jersey, Connecticut, Pennsylvania, Delaware, Massachusetts and Rhode Island. Sales include revenues from its toll-free telemarketing division. Stores, averaging 5,000 square feet, carry a number of brands, including Sealy, Serta, Simmons and Stearns & Foster. In 2005, opened 59 stores and closed two. Plans to end 2006 with about 427 units. Bedding accessories accounted for about 5% of total sales last year. Total sales in 2005, $394 million, up 21.2% from $325 million in 2004. | |||||||
| 3 | 3 | Mattress Firm, Houston | $328.0 | $273.0 | 20.1% | 314 | 314 |
| Owned by Sun Mattress, an affiliate of Sun Capital Partners. Fiscal year ended Jan. 31. Bedding specialty retailer with stores averaging 4,000 to 7,000 square feet. Carries Nature's Rest, Sealy, Simmons, Stearns & Foster and Tempur-Pedic, as well as a private-label line. Also carries Select Comfort's Sleep Number bed in select locations after introducing the beds at 45 locations last year and at another 30 locations this year. In 2006, opened its new flagship store in Houston with 18,000 square feet and acquired Chandler, Ariz.-based Metropolitan Mattress, with 26 locations in the greater Phoenix area. Bedding accessories accounted for about 8% of total sales last year. Total 2005 sales were $356 million, up 19.9% from $297 million in 2004. | |||||||
| 4 | 4 | Federated Department Stores, Cincinnati | $288.0 | $256.0 | 12.5% | 861 | 459 |
| Publicly held. Fiscal year ended Jan. 28. Completed its acquisition of May Department Stores on August 30, 2005. Completed the conversion of all regional department store nameplates to the Macy's nameplate in March 2005. Will add another 400 Macy's locations nationwide beginning in September as it converts all May regional stores. Divesting 80 duplicate locations as a result of the May acquisition, including 40 current May stores in 11 states and 40 Macy's stores in 15 states. Also plans to close five duplicate distribution centers this year. In June 2006, agreed to sell the 48-store Lord & Taylor division. Total 2005 sales, including May sales from September 2005 through January 2006, were $22.4 billion, up 41.9% from $15.8 billion in 2004. | |||||||
| 5 | 5 | Sam's Club, Bentonville, Ark. | $265.0 | $248.0 | 6.9% | 567 | 551 |
| Fiscal year ended Jan. 31. A division of publicly held Wal-Mart. Sales and store counts are for Sam's Club division only. Also sells bedding online at www.samsclub.com. Carries Serta. Opened 17 new clubs in 2005 and closed one. Clubs range between 70,000 and 190,000 square feet and average 129,000 square feet. Continued its push to focus on small business members. Sales of hardgoods, including bedding and other home furnishings, were $9.2 billion in 2005, up 7.2% from $8.5 billion in 2004. Same-store sales increased 5% in 2005. Total 2005 sales were $39.8 billion, up 7.2% from $37.1 billion in 2004. | |||||||
| 6 | 6 | Mattress Giant, Addison, Texas | $199.0 | $184.0 | 8.2% | 235 | 262 |
| Bedding specialist with stores in Texas, Florida, Maine, Missouri, Minnesota, Illinois, New Jersey, New Hampshire, Pennsylvania, Rhode Island, Delaware, Maryland and Massachusetts. Units average 4,900 square feet and offer Airsprung, IBC, Kingsdown, Leggett & Platt, Serta, Simmons, Spring Air and Tempur-Pedic. In December 2005, sold its 29 Chicago area stores to Itasca-based Back to Bed. Bedding accessories accounted for about 10% of total sales last year. Total sales in 2005 were $221 million, up 7.8% from $205 million in 2004. | |||||||
| 7 | 8 | The Sleep Train, Citrus Heights, Calif. | $192.0 | $163.0 | 17.8% | 121 | 108 |
| Promotional to high-end bedding specialist operating under three brands, Sleep Train, Mattress Discounters and Boxcar Bedding, in the San Francisco Bay and Sacramento areas and in San Diego. Boxcar stores carry promotional product and serve as clearance centers. Stores carry Sealy, Stearns & Foster, Simmons, The Sleep Number bed by Select Comfort, and Tempur-Pedic. Plans to open eight to 10 new stores in 2006. In July 2006, said it plans to acquire the 55-store Sleep Country USA chain. Bedding accessories accounted for about 5% of total sales last year. Total sales in 2005 were $201.6 million, up 17.2% from $172 million in 2004. | |||||||
| 8 | 7 | Serta-Exclusive Sleep Shops,Hoffman Estates, Ill. | $190.0 | $180.0 | 5.6% | 400 | 390 |
| Network of independently owned, dealer-operated sleep shops operating in 43 states in the major markets of Los Angeles, Las Vegas, Phoenix, Chicago, Houston, New Orleans, Atlanta, Columbus, Ohio, Pittsburgh, Cincinnati, Providence, R.I., and Charleston, S.C. Stores operate under a variety of names, with America's Mattress the most prominent. Serta International, which supports the stores, plans to add more than 100 Serta-only sleep shops in 2006. Bedding accessories accounted for about 10% of total sales last year. Total sales in 2005 were $210 million, up 7.7% from $195 million in 2004. | |||||||
| 9 | 10 | Berkshire Hathaway furniture division, Omaha, Neb. | $180.0 | $156.0 | 15.4% | 32 | 31 |
| Owns Nebraska Furniture Mart of Omaha, Neb.; R.C. Willey of Salt Lake City; Star Furniture of Houston; and Jordan's Furniture of Avon, Mass. All four carry bedding, with Star carrying only Serta and Jordan's Sleep Lab featuring a number of brands including Boyd, Comfortaire, Kaymed, King Koil, Nature's Rest, Sealy, Select Comfort, Simmons, Spring Air, Stearns & Foster and Tempur-Pedic. In 2005, R.C. Willey opened a store and warehouse in Reno, Nev., and Jordan's opened a 60,000-square-foot clearance center in its Avon facility. This summer, R.C. Willey entered the California market with a store in the Sacramento market. Bedding sales accounted for about 10% of total sales last year. Total sales in 2005, $1.88 billion, up about 1% from $1.87 billion in 2004. | |||||||
| 10 | 11 | Rooms To Go, Seffner, Fla. | $160.0 | $150.0 | 6.7% | 102 | 98 |
| Midpriced chain operating Rooms To Go, Rooms To Go Kids & Teens, Rooms To Go Beds and clearance centers throughout Florida and in Alabama, Georgia, the Carolinas, Mississippi, Tennessee and Texas, as well as a franchise unit in Puerto Rico. Stores carry Nature's Rest, Sealy and Simmons. In January 2006, opened 11 former Rhodes stores as Rooms To Go, including its first store in Mississippi. Will open nine new stores over the next two years, including the five New Orleans-based Kirschman's stores the retailer acquired in June 2006. The Louisiana stores will reopen as Rooms To Go starting in mid-September. Bedding sales accounted for about 10% of total sales last year. Total sales in 2005, $1.6 billion, up 12.7% from $1.4 billion in 2004. | |||||||
| 11 | 21 | Ashley Furniture HomeStores, Arcadia, Wis. | $140.0 | $80.0 | 75.0% | 219 | 153 |
| Manufacturer's dedicated store network of promotional to midpriced stores in 44 states, including Alaska and Hawaii. Stores average 40,000 square feet and carry Sealy and Simmons brand mattresses, as well as Ashley's own private-label brand. Expects retailers to open 100 or so HomeStores this year. Bedding sales accounted for about 9% of total sales last year. Total sales in 2005 were $1.6 billion, up 73.2% from $913 million in 2004. | |||||||
| 12 | 12 | Sears, Hoffman Estates, Ill. | $130.0 | $136.0 | -4.4% | 924 | 873 |
| Fiscal year ended Jan. 28. Part of publicly held Sears Holdings Corp. Sales and store counts are for full-line U.S. stores only, including Sears Grand and Essentials locations. Offers bedding through full-line stores and online at www.sears.com. Merged with Kmart to form one company on March 24, 2005. Closed three full-line stores in 2005 and opened 54 Sears Essentials and Grand locations. During the first half of 2006, all Sears Essential stores changed nameplates to Sears Grand. Full-line stores average 132,000 square feet. Carries Serta, Sealy, Stearns & Foster and Sears O'Pedic brands. Total Sears U.S. sales were $30 billion in 2005, down 3.9% from $31.2 billion in 2004. | |||||||
| 13 | 14 | Rockaway Bedding, Randolph, N.J. | $122.0 | $115.0 | 6.1% | 180 | 168 |
| Promotional to high-end bedding specialty chain primarily in New York, New Jersey and Pennsylvania; and also in Delaware, Connecticut, Maryland and Virginia. Stores carry King Koil, Lady Americana, Sealy, Serta, Simmons, Stearns & Foster and Tempur-Pedic. In 2005, added a net 12 stores in existing markets. Plans to end 2006 with 200 stores, opening its first stores in Washington, D.C. Bedding accessories accounted for about 10% of total sales last year. Total sales in 2005 were $135 million, up 5.5% from $128 million in 2004. | |||||||
| 14 | 13 | JCPenney, Plano, Texas | $117.0 | $116.0 | 0.9% | 1,019 | 1,017 |
| Fiscal year ended Jan. 28. Sales and store counts are for department stores in the U.S. and Puerto Rico, the "big book" and specialty catalogs. Also sells bedding online at www.jcpenney.com. Carries Sealy, Serta, Spring Air, AeroBed and the Slumber Comfort brand from the JCPenney Home Collection. Opened 18 new stores in 2005, including 11 off-mall locations, and closed 16. Plans to open 27 stores this year. Opened the JCPenney Experience, a three-level, temporary store in Times Square in March. Comp-store sales increased 2.9% in 2005, the fifth consecutive year of improvement. Internet sales increased 28% in 2005 and surpassed the $1 billion mark for the first time. Total 2005 sales were $18.8 billion, up 3.8% from $18.1 billion in 2004. | |||||||
| 15 | 15 | Dial-A-Mattress, Long Island City, N.Y. | $104.0 | $96.0 | 8.3% | 45 | 44 |
| Privately held bedding specialist and direct marketer with stores primarily in New York, and also in Connecticut, California, New Jersey and Maryland. The stores, which account for about 30% of sales, average 2,862 square feet and carry King Koil, Sealy, Serta, Simmons, Stearns & Foster and Tempur-Pedic. Also has a dealer network, which accounts for about 68% of sales, that delivers product sold over the phone. Internet sales account for about 2% of sales. Plans to end 2006 with 50 stores. Bedding accessories accounted for about 5% of total sales last year. Total sales in 2005 were $110 million, up 10% from $100 million in 2004. | |||||||
| 16 | 18 | Slumberland, Little Canada, Minn. | $100.0 | $85.0 | 17.6% | 96 | 92 |
| Family-owned, midpriced retailer operating throughout Minnesota, Wisconsin, Illinois, Iowa, Missouri, Montana, Nebraska, North Dakota, South Dakota and Kansas. Units range from 10,000 to 35,000 square feet and carry Sealy, Simmons, Stearns & Foster, Tempur-Pedic, U.S. Bedding and Slumberland's private label, Mattress Crafters. Bedding sales accounted for about 28% of total sales last year. Total sales in 2005 were $350.8 million, up 5% from $334.1 million in 2004. | |||||||
| 17 | 16 | Mattress Discounters, Upper Marlboro, Md. | $100.0 | $96.0 | 4.2% | 115 | 106 |
| Promotional to high-end bedding chain operating in the New England and Mid-Atlantic states. The Mattress Discounters name also has been licensed to 90 stores in the San Francisco Bay area, and in Sacramento, Calif., San Diego and Virginia Beach, Va. Stores average 4,000 square feet and carry Dormia, Sealy, Stearns & Foster, Simmons and the private-label Factory Direct Comfort Source brand. Plans an aggressive new store opening program in existing markets, with the opening of 20 new stores this year. Bedding accessories accounted for about 10% of total sales last year. Total sales in 2005 were $111.3 million, up 4.1% from $106.9 million in 2004. | |||||||
| 18 | 17 | Art Van, Warren, Mich. | $95.0 | $94.0 | 1.1% | 29 | 30 |
| Family-owned, midpriced to high-end Michigan chain. Stores carry Dormia, King Koil, Kingsdown, Sealy, Simmons, Stearns & Foster and Tempur-Pedic. The retailer is looking to open four mattress-only stores in metro Detroit. The stores would range from 3,500 to 6,000 square feet. Art Van has hired a retail design firm to look at its merchandise mix, floor layout and design, and to improve the consumer shopping experience. Bedding sales accounted for about 18% of total sales last year. Total sales in 2005 were $535 million, down 1.8% from $545 million in 2004. | |||||||
| 19 | 22 | Sit 'n Sleep, Gardena, Calif. | $87.0 | $78.0 | 11.5% | 15 | 13 |
| Owned by Sleep Well. Promotional to high-end Southern California bedding specialist. Stores average 12,000 square feet, and offer more than 100 beds from Aireloom, Chattam & Wells, E.S. Kluft, Miralux, Nature's Rest, Sealy, Serta, Simmons, Spring Air, Stearns & Foster and Tempur-Pedic. In 2005, opened stores in Palmdale and Murrieta and moved into its warehouse and headquarters complex in Gardena. Recently added Kingsdown bedding in its stores. Bedding accessories accounted for about 7% of total sales last year. Total sales in 2005 were $94 million, up 11.9% from $84 million in 2004. | |||||||
| 20 | 23 | Costco, Issaquah, Wash. | $85.0 | $76.0 | 11.8% | 346 | 330 |
| Fiscal year ended Aug. 28. Sales and store counts are for the trailing 12 months ended Feb. 12, and include sales from U.S. locations, as well as its two Costco Home stores in Seattle and Tempe, Ariz. Also sells bedding online at www.costco.com. Carries Sealy, Aerobed and Novaform memory foam mattresses. Opened 16 net new stores in 2005. Costco Home store sales account for about 4.5% of total sales. Costco Home offers about 2,000 items, including bedding, furniture, drapes, rugs and lamps. Will open a third Home store in Fairview, Ore., in late 2006. Currently testing a larger prototype warehouse in Hillsboro, Ore. Total 2005 trailing 12-month sales were $54.6 billion, up 10.8% from $49.3 billion in 2004. | |||||||
| 21 | 9 | May Department Stores, St. Louis | $84.0 | $158.0 | -46.8% | 430 | 430 |
| Sales and store counts are for the department stores of Robinsons-May, Hecht's, Strawbridge's, Foley's, Kaufmann's, Famous-Barr, Filene's, Meier & Frank and Marshall Field's, and are for the seven months of February through August 2005. Acquired by publicly held Federated Department Stores (ranked separately, see No. 4) on Aug. 30, 2005. The regional department store banners will cease to exist this year as Federated is converting all former May locations to the Macy's nameplate. Additionally, Federated will divest about 40 current May locations which are duplications of other Federated properties. | |||||||
| 22 | 19 | Tempur-Pedic, Lexington, Ky. | $78.0 | $72.0R | 8.3% | NS | NS |
| Publicly held, vertically integrated manufacturer, marketer and distributor selling viscoelastic foam mattresses and pillows direct to consumers through its call center operations and the Internet, to the health care community, as well as through furniture and specialty stores. Only direct-to-the-consumer sales for the U.S. are included. In 2006, launched The GrandBed and The RhapsodyBed by Tempur-Pedic as well as a newly updated version of The ClassicBed by Tempur-Pedic. Total domestic direct-to-consumer sales in 2005 were $88.6 million, up 5% from $84.2 million in 2004. | |||||||
| 23 | 24 | Havertys, Atlanta | $77.0 | $74.0 | 4.1% | 118 | 117 |
| Publicly held, midpriced to upper-midpriced chain in 17 states in the South and Midwest. Stores average 35,100 square feet and carry Sealy, Serta and Tempur-Pedic mattresses, as well as its own private-label, Havertys Collections. For 2006, preliminary plans are to open five stores and close two older stores. Bedding sales accounted for about 9% of total sales last year. Total sales in 2005 were $827 million, up 5.5% from $784 million in 2004. | |||||||
| 24 | NR | Sleep Country USA, Kent, Wash. | $76.0 | $61.8 | 23.0% | 52 | 47 |
| Owned by Simmons Co. Operates sleep shops in metro Seattle and in the greater Portland, Ore., area. Stores average 5,000 square feet and carry Pacific, Sealy, Simmons, Spring Air and Tempur-Pedic. Plans to open five stores in 2006. In July 2006, Simmons said it would sell the chain to California-based The Sleep Train (see No. 7). Bedding accessories accounted for about 6% of total sales last year. Total sales in 2005 were $80.9 million, up 21% from $66.8 million in 2004. | |||||||
| 25 | NR | Big Lots, Columbus, Ohio | $72.8 | $62.8 | 15.9% | 1,401 | 1,502 |
| Fiscal year ended Jan. 28. Broadline closeout retailer operating a total of 1,401 stores in 47 states at fiscal year's end. Offered furniture in 1,320 of those stores, a net increase of 251 furniture departments over 2004. Furniture departments range in size from 2,000 to 5,000 square feet, and carry national brand quality mattresses. Closed its 43 standalone furniture stores, effective January 2006, to focus on growing furniture sales in the furniture departments of its main closeout stores. Bedding sales accounted for about 11% of total furniture sales last year. Total furniture department sales in 2005 were $650 million, up 20% from $541 million in 2004. Furniture department net sales represent about 13.5% of the company's total net sales. | |||||||
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