Bedding leaders expect gains in ‘11
David Perry -- Furniture Today, December 24, 2010
HIGH POINT - The bedding industry faces another challenging year in 2011, leading bedding producers tell Furniture/Today.
Those producers, who account for a majority of U.S. bedding shipments, generally expect slow to modest growth in the new year, with a tough economic climate posing a significant hurdle.
A number of the producers see particular challenges in the first half of the year, but say business could pick up in the second half.
There also is a school of thought holding that big opportunities loom in the new year. Some cite the possibility of a release of pent-up demand for mattresses, while others say growth can come from taking business from other players in the market.
Here is a summary of what several Top 15 bedding producers said in response to this question: What is your overall outlook for bedding business next year?
► Jodi Allen, chief marketing officer, Sealy: "We believe the mattress industry will continue to experience inconsistent demand in the first half of 2011. In addition, we believe average dollar growth will be consistent with average unit growth for 2011. We will remain focused on actions within our control to drive our future performance. Since Sealy is well-diversified and continues to focus on growing profitable market share and reducing our operating cost base, we remain well positioned to continue improving our profitability."
► Bob Sherman, president, Serta: "Next year will be full of opportunities for manufacturers and retailers that want to be aggressive and capture additional market share."
► Gary Fazio, CEO, Simmons: "The big unknown is what the impact of inflation on materials will be. I expect to see a positive uptick on business as pent-up demand is released but overall believe that 2011 will look a lot like 2010 did."
► Rick Anderson, president of Tempur-Pedic North America: "Tempur-Pedic is optimistic about the potential for business growth in 2011. We have focused our energy on developing products that have broad appeal and in making sure our brand is a top choice for premium consumers. We think the retail environment will continue to be tough and are working closely with our retail customers to maximize the potential for every sale."
► Dave Roberts, president, Comfort Solutions: "We will still see a challenging business climate in 2011. I expect unemployment will remain high and housing will continue to be anemic. However, given the fact that many consumers have held off from making bigticket purchases over the past two years, I believe many of them will have to step up next year and replace their existing mattress."
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"Since Sealy is welldiversified and continues to focus on growing profitable market share and reducing our operating cost base, we remain well positioned to continue improving our profitability." Jodi Allen, Sealy
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"The big unknown is what the impact of inflation on materials will be. I expect to see a positive uptick on business as pentup demand is released but overall believe that 2011 will look a lot like 2010 did." |
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"Promotional price points will remain a key area as always. However, upper end growth could gain some traction with well positioned specialty sleep offerings above the $1,000 price point."
Ron Passaglia, Restonic |
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"Tempur-Pedic is optimistic about the potential for business growth in 2011. We have focused our energy on developing products that have broad appeal and in making sure our brand is a top choice for premium consumers. " |
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"Momentum will accelerate in the second quarter with solid increases in the remainder of 2011." Kevin Toman, Englander |
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"Next year will be full of opportunities for manufacturers and retailers that want to be aggressive and capture additional market share." |
► Eric Hinshaw, CEO, Kingsdown: "While the industry will be moving forward at a slow pace, we see explosive growth for our family of brands."
► Dan Hige, president, International Bedding: "Our expectation is a modest increase in overall market growth in 2011 versus this year. We believe the market will remain soft through the first half - except for certain pockets of the country - followed by a broader improvement in most markets in the second six months."
► Gerry Borreggine, CEO, Therapedic: "I believe we are up against another difficult year, with no relief on the horizon for housing starts and with real estate values remaining depressed. The largest asset for most Americans is their homes, and that asset is still worth less today than it was two years ago. The diminished equity has an adverse effect on the buying habits of most. Home furnishings purchases will continue to be deferred to a later date - hopefully a not too distant date."
► Rick Robinson, president of Spring Air: "Our outlook for 2011 business is very good. Many of our licensees have launched significant new Spring Air programs with key retailers across the country. We expect to gain traction in the new year as a result of those developments."
► Kevin Toman, president of Englander: "We had a strong first quarter in 2010 and I believe we will be flat in the first quarter of 2011. Momentum will accelerate in the second quarter with solid increases in the remainder of 2011."
► Ron Passaglia, president, Restonic: "After several years of a difficult business climate the marketplace could be open for some growth. Promotional price points will remain a key area as always. However, upper end growth could gain some traction with well positioned specialty sleep offerings above the $1,000 price point. Every opportunity needs sharp focus on value and specific reasons for the consumer to purchase. Even though this is a basic business principle, competition will dictate that those who have the discipline in these areas will capture the consumer dollar."
► Mike McQuiston, vice president, Symbol Mattress: "Many key economic factors, like housing and jobs, are a long way from recovery. I believe the mattress industry will have limited gains in both units and dollars in 2011, as consumers continue to spend carefully."
► Kerry Tramel, president, Lady Americana: "Overall bedding business will remain challenging for both manufacturers and retailers, especially those who don't realize the necessity of increasing their average unit selling price. Those who maintain their focus on offering customers what they really want - a better night's sleep - and effectively communicate that throughout the buying process will still have terrific opportunities for growth."
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Bedding leaders see challenges for 2012
Dec 22, 2011 -
Tier Two producers expect more of the same
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