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Execs assess future distribution for bedding

By David Perry -- Furniture Today, November 30, 2009

HIGH POINT — Looking for the channel of distribution that will show the greatest growth in the years to come? Try the bedding specialty store channel. Or maybe the direct-to-consumer channel. Or perhaps it will be the warehouse clubs.

Those are three possible scenarios cited by leading bedding producers, who recently shared their thoughts on changes in the mattress distribution arena with Furniture/Today.

Every two years the newspaper updates the mattress distribution scene. Its latest report, based on retail sales through the end of last year, found that bedding specialty stores have gained one point of market share, to 42%, while furniture stores held steady at a 39% share. The warehouse club channel also gained one percentage point of market share, growing to 5%.

Furniture/Today asked the producers to take out their crystal balls and predict which channel will see the greatest growth in the future. Here are their responses:

Larry Rogers, CEO, Sealy: “It's up for grabs to whomever goes after the opportunity aggressively. If they are focused on bedding, offer products with a good value proposition, maintain the highest frequency of advertising of name brands and invest in developing their people to increase close rates, they should win the battle for market share.”
Steve Fendrich, president, Simmons: “I think this will vary by market. In times like these, the consumer will go the retail brands they trust.”
David Binke, executive vice president of sales, Comfort Solutions: “Bedding specialty stores will likely experience the most growth because they will continue to add locations to ensure it.”
Tony Smith, president of International Bedding: “Specialty stores.”
Eric Hinshaw, CEO of Kingsdown: “Specialty stores and big box retailers (warehouse clubs, etc.) will gain the most. Big-box retailers will sell the commodity mattresses because of the convenience, while specialty stores will excel with the growing consumer base who is actually looking for a better night's sleep.”
Gerry Borreggine, CEO of Therapedic: “Specialty stores and warehouse clubs.”
Kerry Tramel, president of Lady Americana: “Percentage wise, direct-to-consumer will definitely show the biggest gains moving forward. E-commerce alone will push this channel to greater heights.”
Ron Passaglia, president of Restonic: “The bedding specialty stores are focused on all of the elements necessary to continue their market share growth. Strong regional furniture stores with rededicated bedding strategies will have increased growth because of their already loyal customer base. If these two market segments remain fully committed to the category it will become difficult for the other segments to gain share.”
Kevin Toman, president of Englander: “The greatest percentage of growth in the future will come from the Internet.”
Jeff Scorziell, president of Anatomic Global: “I think the specialty bedding stores and savvy furniture retailers will continue their rise. They will challenge our industry to do a better job in the way we sell bedding to our customers. I think their market share will grow, as well as the Internet and the direct-to-consumer channel.”
Bob Naboicheck, president of Gold Bond: “I think we need to watch warehouse clubs and direct-to-consumer channels very closely, particularly on more basic product. A consumer who is not that discerning a bedding shopper will certainly be attracted to lower cost and the convenience of those options. Traditional retailers are really going to need to continue to improve service and selling the solution to a better night's sleep in order to more effectively compete.”
Mike Zippelli, CEO of Classic Sleep Products: “The burst of activity in our industry is going to come from nontraditional retail in the future. The Internet and Web are growing at a blistering pace. Warehouse clubs, factory direct and big boxes like Wal-Mart and even Bed Bath & Beyond are going to be taking a greater share of the market in the future. They might not be selling the most innovative products, but they are early adopters when it comes to understanding how today's consumer wants to shop.”
Dave Young, CEO of VyMaC Corp., parent of Verlo Mattress Factory Stores: “I believe furniture stores and specialty sleep stores will continue to control the lion's share of the market. But Internet sales continue to quietly grow and create consumer-direct connections that cannot be left out.”
Rick Robinson, president of Spring Air International: “Bedding specialty stores will grow more quickly than any other channel. Increasing their number of stores will afford them even broader distribution in most markets. Also, they often have better-educated salespeople and can react more quickly than most other types of bedding outlets.”

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