Mattress majors see growth on horizon
By David Perry -- Furniture Today, February 15, 2010
LAS VEGAS —
Bedding's biggest producers see growth on the horizon, say unlocking pent-up demand for mattresses would give the industry a big boost, and predict plenty of growth for the specialty sleep category.
Those were some of the key points that emerged here at a Power Breakfast with bedding's major players during the Las Vegas Market, moderated by Furniture/Today and hosted by the bedding-rich World Market Center.
Joining the discussion were Louis Bachicha, executive vice president of sales at Sealy; Steve Fendrich, president of Simmons; Bob Sherman, president of Serta; Rick Anderson, president of Tempur-Pedic North America; Dave Roberts, president of Comfort Solutions, and Tony Smith, president of International Bedding — all Top 10 bedding companies.
While forecasts see modest growth for the industry this year, reversing years of sales declines, the producers were not overly enthusiastic about growth prospects.
Serta's Sherman predicted a battle for market share in 2010, said strong players will get stronger, and said there may be some mattress casualties this year.
Tempur-Pedic's Anderson said consumers need to think about bedding differently for the recovery to gain traction, while Comfort Solutions' Roberts noted that key challenges remain, including a weak housing sector and unemployment.
Simmons' Fendrich sees the comeback starting with “a long but slow increase in bedding sales,” but cautioned that consumer confidence must rebound for growth to pick up steam.
Sealy's Bachicha said he is “cautiously optimistic” about industry growth and said fourth-quarter economic signs were favorable. Retailers will continue to watch their costs, he added.
IB's Smith said the macroeconomic issues won't change much in the short term. He expects “a very, very modest year” of growth, but said he sees some striking retail success stories that give him cause for optimism.
The leaders had varying thoughts on the much-discussed issue of pent-up demand for mattresses, which some analysts see fueling a big growth surge this year.
“There is pent-up demand, but the question is will it be released,” said Fendrich. It's up to the bedding industry to spark consumer interest in mattresses, he added.
Assessing prospects for sales of beds at $2,000 and up, the producers found some causes for optimism. Anderson said the hope is that well-heeled consumers are finding that their financial situations are stable, and may be more willing to make purchases they have put off. Fendrich said that sales of Simmons beds at $2,000 and up have grown, and that more retailers are becoming more adept at selling better beds.
Sherman said that Serta's new Perfect Day line, retailing from $1,599 to $3,000, got a strong reception in Las Vegas. “Retailers are starting to feel they should put those (better) beds back on the floor,” he said.
But Roberts said the industry “may be forcing the consumer down” to lower price points. He doesn't see a lot of enthusiasm on consumers' part for luxury bedding.
The producers were enthusiastic about the prospects for the specialty sleep category. Sherman said a new gel-type construction from Serta offers “a tremendous future” for the producer. Roberts said Comfort Solutions, also offering gel, believes that category “will grow very substantially.”
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