Mattress renewal taking shape but price hikes are a concern
Indicators are positive as the High Point Market opens for its spring edition. I've been hearing good reports about retail sales, which is always a helpful sign. For their part, bedding producers come to the Furniture Capital of the World loaded with new lines. And the bedding lineup here is expanding.
Perhaps, as the flowers burst into bloom in this season of rebirth, the mattress category will usher in its own season of renewal, a time of robust sales bursting forth across the country.
Or maybe not.
But before we get to causes for concern this year, we begin with the positive side of the ledger. Business was surprisingly robust at the bedding-rich Las Vegas Market earlier this year, a demonstration of positive retail moves and attitudes. That could also mean a nice lift for this High Point Market.
As we noted earlier, major bedding producers have a plethora of new lines: Sealy is showing its new flagship Posturepedic line, Simmons has new flagship Beautyrest lines, and Serta offers its new flagship Perfect Sleeper line and its iComfort gel memory foam line. Given the importance of the flagship lines and their broad distribution, retailers are sure to be drawn to them.
The International Home Furnishings Center continues to focus on the bedding segment and welcomes a Top 10 producer back to High Point this market: Comfort Solutions. The No. 6 producer has a big showroom in the IHFC, where it will show its "no sag" Extended Life line, an upgraded Sleep ID line, a revamped Laura Ashley line and a new two-sided bedding line.
Also new to the IHFC is the Specialty Sleep Assn., which showcases emerging new sleep technologies, and Vivon, which has a new partnership with Brookstone for a massage mattress.
Returning IHFC exhibitor Paramount introduces its "Sleep for Success!" line, keyed to its partnership with James Maas, the sleep expert who co-authored the book, "Sleep for Success!" Paramount also unveils a line developed in partnership with A. H. Beard, the Australian bedding power.
Those are just some of the product highlights. Space limits me from listing more.
The negative? Price increases. Bedding producers tell me raw materials prices are rising. That is a particularly unwelcome development at this point in the year. Retailers are never happy to hear about price increases and might resist them. That, in turn, would mean shorter margins for producers or a move to less expensive (translation: lower quality) materials. It might mean both.
How will all this play out in High Point? That's one of the story lines I will be following.
See you at market. Hope yours is a good one.
bedselling daddy commented:
Steve I like your point fuel went up our prices went up fuel went down our prices stayed up. Remember early 2001 02 steel prices shoot up price increase 30 days before the increase, steel dropped quickly and no price drop from the factories. Now thats how you fund the share holder. Remember when the retailer was the customer first in line. Now! CEO, Chairman of the Board, Board of Directors, Shareholder, Retailer, now we have Boomerang Beds! quailty comes when the consumer makes the list. hmmmmmm ? tempur never got one back never had a customer call about not be satisfied with warranty issue. Only 18.5% of my sales and no phone calls sucking the life out of the sales flooor, no inspection cost, no redelivery cost, very low comfort exchange, whish the innerspring brands could perform the same and drive customers in the front door as well. It takes more than quailty products to be a quailty vendor. Do enough preaching and ya might get a revival. Can I get an A men
A. nonymous commented:
Steve, Let me understand this. The manufacturer should make less money so that retailers can sell more beds and make the same profit. The increase should be shared with everyone, consumer, retailer, and manufacturer.
Steve Chandler commented:
I remember the large increases when fuel started rising 3 plus years ago. What is sad is that we had very few companies give discounts when fuel went back down. So here we are again. We'll be suffering fuel surcharges next.
Most manufactures now have big concerns about what products are retailing at. Constantly pushing for our prices to go down diminishing profitability. However, first sign of a raw material increase and their prices are shooting up.
If they are that concerned with retails, is it not their responsibility to absorb some of these hikes. Thus increasing volume and stimulating the economy simultaneously. Just a thought. Thank you.
Lisa S. commented:
The price increases that I've already had come in weren't as bad as I expected. Luckily in some of the new Vegas line ups, they already prepared for increases. (To anyone reading this, that doesn't mean you can increase them more. Thanks). Maybe I'll see you Monday!
