Three specialists lead bedding growth parade

Looking for some retail superstars able to buck a down market and generate double-digit growth?

Look no further than three bedding giants: Mattress Firm, Mattress Giant and Sleepy’s. Those standouts had impressive growth years in 2007, each moving up on Furniture/Today’s list of the Top 100 U.S. Furniture Stores. Our latest survey, published in the May 26 issue, is deserving of close scrutiny by the bedding community. (Click here to order the Top 100 U.S. Furniture Stores)

It shows that fully one-tenth of the Top 100 are bedding specialists, a nice statement about the strength and viability of the bedding specialist category on the retail landscape. It also shows that those 10 specialists turned in another strong year in 2007.

While it’s true that the performance of the bedding specialists in 2007 wasn’t as strong as what they achieved in 2006, they still outperformed the Top 100 as a group — together they grew by 3.4% last year, while the Top 100 grew by only 0.5%. And they also outperformed most of the other subcategories of the Top 100.
What is particularly impressive about the bedding specialists is the large number of stores the group added last year in what was, officially, a year of unit declines in the bedding industry. Together, the 10 specialists added a net total of 424 stores, a 17.9% increase. That growth, in a down market, is a testament to the growth commitment of the leading bedding retailers.

The growth surge is being fueled largely by Sleepy’s, which added almost 200 stores last year, and Mattress Firm and Mattress Giant, which each added about 100 stores last year. It’s clear that those three standouts are gaining share with aggressive growth strategies.

Not surprisingly, those three led the bedding growth parade last year. Houston-based Mattress Firm, which moved up to No. 15 on the Top 100 list, led the bedding category with a 16.6% sales increase. Addison, Texas-based Mattress Giant saw its sales jump by 15.6% last year, moving it up to No. 33. And No. 14 Sleepy’s, based in Bethpage, N.Y., recorded a 13.2% sales gain last year, according to our Top 100 survey.

Those three were the only bedding specialists that found a way to achieve double-digit sales growth last year. Sales growth was modest — The Sleep Train was up only 1.6%, while Mattress Discounters was up just 2.4% — or nonexistent for the others; Select Comfort, the Serta-exclusive sleep shops, 1800mattress.com and Sit ‘n Sleep all had sales declines last year.

That is a mixed bag for the bedding specialists. It does, however, accurately reflect what is happening in a tough retail environment; there are winners and there are losers.

Still, the big picture for bedding remains positive. Overall, the top bedding specialists remain on the ascent. Thanks to Mattress Firm, Mattress Giant and Sleepy’s for keeping their growth engines stoked.