Simmons drops price points on flagship Beautyrest line

Steps down $100 to help retailers spark sales

David Perry -- Furniture Today, August 29, 2008

ATLANTA - Bedding major Simmons is broadening the appeal of its flagship Beautyrest line with its new European-styled Beautyrest Studio line. It is also stepping down $100 to start that line at $599, a price point designed to spark sales in a sluggish retail climate.

The six-model Beautyrest Studio line, retailing from about $599 to $899, features 713 Pocketed Coils, the flagship feature of the Beautyrest line. The six-inch-tall springs are designed to create what the producer calls "a stylish, sleek European design." The styling includes polka dots on the tape edges.

Anne Kozel of Simmons shows a model in the Natural Care Elite line of eco-friendly latex beds, which retail at $2,799 to $4,999.

"We believe this line will help capture a younger generation of Beautyrest customers, as well as those price conscious consumers trading down as a result of the current economy," said Charlie Eitel, CEO of Simmons.

Added Tim Oakhill, EVP of marketing: "The new European design of our Beautyrest Studio collection is a simple, effective story for retailers to convey when introducing consumers to the Beautyrest brand, plus it facilitates a logical step up progression that will help drive higher ticket sales."

Simmons officials say that straightforward, simple selling stories resonate best with consumers, and with the retail sales associates who serve them. They say the Studio line reflects the agile approach that Simmons is taking in this challenging bedding climate.

"The Studio line didn't even exist 90 days ago," Eitel said at the recent Las Vegas Market, where the line was successfully launched. "We will ship the line by Labor Day."

In addition to boosting retail sales, the line should help drive unit volume for Simmons, officials said. That is important, because Simmons' domestic bedding unit volume dropped 12.2% in the second quarter, the company reported. Net bedding sales were down by 6.5% in the quarter.

But Simmons continues to offset some of those declines with rising average unit selling prices, long a focus at the company. AUSP was up 7% in the second quarter.

The step-up story from the Studio line to the regular Beautyrest line is designed, in part, to keep the AUSP at Simmons on the upswing. Other new Simmons products should also help boost AUSP, Simmons officials said.

Four new Natural Care Elite latex beds, designed with the assistance of green marketing guru Danny Seo, retail from $2,799 to $4,999. Simmons was a leader in introducing green beds, said Anne Kozel, a brand director at Simmons. "The Natural Care line is doing really well," she said. "We were out there two years ahead of the game. Interest in the last six months has skyrocketed. This (green) is not a trend, it's a way of life."

Simmons is also bolstering its specialty sleep lineup with two new ComforPedic models, both cushioned with the company's proprietary NxG advanced memory foam, touted as offering a faster recovery and cooler sleep than other memory foams.

The ComforPedic Ariana model has a layer of ventilated latex, designed to help airflow and maximize comfort. It retails at $4,999. Also new is the ComforPedic Capri, retailing at $4,499, which features a new GelTouch layer infused onto a layer of NxG foam, creating a cooling sensation and greater conformability, according to the company.

Simmons' strategy with its new products is to meet consumer needs at a wide variety of price points, by offering "quality solutions" at each price, officials said.