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David Perry

Simmons, Tempur, Select set fast ’06 growth pace

Our latest bedding producer rankings, which you’ll find in our latest print issue and soon in our online store, illustrate yet again the rapidly changing nature of our industry. There are some familiar shining stars but, overall, many of the industry’s best-known players experienced a tough year in 2006.

A majority of the growth among the industry’s top producers came from just three companies: Simmons, which added $114 million in shipments in 2006; Tempur-Pedic, which added $82 million; and Select Comfort, which added $58 million. Together, the three accounted for almost 75% of the growth recorded by the Top 15 U.S. Bedding Producers.

The growth registered by those three players is not surprising. Simmons clearly has been on a strong rebound following a 2% sales decline in 2005. And Tempur-Pedic and Select Comfort have been growth stars on our list of top bedding producers for many years.

It’s interesting, however, that the growth rates for those last two players, while still strong, are slowing. Tempur-Pedic was up 31.3% in 2005 and 19.1% last year, while Select Comfort was up 22.8% in 2005 and 18% last year. Still, those two specialty sleep powers continue to set the sales growth pace for the industry.

Our bedding rankings represent a snapshot in time, one that can show some big changes from year to year. 

While the companies on the latest list didn’t change from the previous ranking, only six of the 15 gained market share last year. Using the 4.7% industry sales growth figure from the International Sleep Products Assn. as our standard for “average” industry performance, only Simmons, Serta, Tempur-Pedic, Select Comfort, International Bedding and Kingsdown gained share.

Sealy, which grew 4.6%, was essentially flat last year in market share, but everyone else on the list — Spring Air, Comfort Solutions, Therapedic, Englander, Restonic, Symbol, Corsicana and Lady Americana — lost share, according to our report.

We’re struck by the fact that our growth leaders are among the industry’s largest players. This is a classic case of the big getting bigger, and the smaller producers struggling to grow. All of the players in the Nos. 11-15 spots on our list lost market share last year, our report indicates. We continue to hear that life gets tougher and tougher for the second-tier producers, and our report bears that out.

To the winners and losers on our list, we say the same thing: This is a new year, full of challenges — and opportunities. Good luck in your battle for growth.