• David Perry

Tempur Sealy will step up online sales, analyst says

Hughes: Company will also consider opening more stores

ATLANTA – Tempur Sealy International, facing the loss of $600 million in bedding shipments this year, will boost its online sales this year and will consider opening more of its own stores, an analyst says.

Keith Hughes of SunTrust Robinson Humphrey, based here, offered those thoughts in a report issued today.

He said Tempur Sealy “has seen significant growth (off small numbers) in some periods from its online selling. The company has sold via infomercial (and now online) for a very long time. We expect to see the company ramp up its push to sell online, which may result in more promotions and more models of bed-in-a-box for the company.”

On the issue of opening stores, he noted that the company has a handful of stores that sell its products in the U.S. “The question of whether the company would expand this will be brought to the table, in our view,” he said.

Hughes said the issue with both the online selling and store opening moves is that they “can alienate the current retailer base.”

Tempur-Pedic currently has four “flagship stores” in the U.S., in the Chicago, Boston, Cincinnati and Charlotte, N.C., markets.

Hughes also raised the possibility that Tempur Sealy may make a product launch at the summer Las Vegas Market. “We believe the question of a very unusual August 2017 trade show product introduction may have to be considered in order to help gain retail slots and establish some momentum,” he said.

Tempur Sealy has said it will end its relationship with its largest customer, Mattress Firm, in the first quarter this year.

David PerryDavid Perry | Executive Editor, Furniture Today

Hi, online readers. I'm David Perry, executive editor of Furniture/Today, and the writer on the mattress beat. Get my musings on mattresses on our web site and on my Twitter feed. And let me know what you would like me to write about in the wonderful world of mattresses.

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