Mattress Retailers Are Losing Sleep

Mattress Retailers Are Losing Sleep

Online sales of mattresses are a growing market, particularly for “bed-in-a-box” companies. Intensifying competition from formless digital stores is keeping brick-and-mortar players up at night, one might say.

Casper the Unfriendly Competitor

Casper, the original bed-in-a-box company, began its life as a mail order mattress delivery service. Beds arrive rolled tightly into a package and are opened by the consumer and allowed to expand before first use. The business plan flipped the mattress industry onto its head.

Physical stores, such as Mattress Firm, had been (and still are) the consumer’s primary source for beds. Now, however, Mattress Firm is beginning to consider filing bankruptcy as the company shutters stores across the country and deals with its parent company, Steinhoff International Holdings, recovering from an accounting scandal. Meanwhile, Casper plans to open 200 physical stores across the country this year to gain a stronger foothold and educate consumers on their product offerings. The company will be able to offer direct-to-consumer pricing, creating a price advantage over other retailers.

Somebody Needs a Nap

Casper is currently testing a store concept in New York City alongside its physical store called “The Dreamery”, which charges customers $25 for the opportunity to take a 45-minute nap in one of many Casper mattress-furnished sleeping pods throughout the store. The store provides fresh sheets, pillows, blankets, socks, and eye masks to all nappers. In addition, Casper has partnered with Sleepy Jones, Hello, Sunday Riley, and Headspace to provide nappers with pajamas, toothbrushes, face wash, and audio tracks, respectively. The company hopes to generate customers through the experience, but the concept itself is said to not be a moneymaker. The real sales will occur when patrons of The Dreamery go next door to Casper’s brick-and-mortar location and place an order.

Don’t Let the Bed Bugs Bite

For traditional brick-and-mortar mattress retailers to stay relevant and survive the ongoing transition to e-commerce and bed-in-a-box products, they’ll need to adapt. Mattress Firm has taken a step in the right direction recently by partnering with Purple Innovation and carrying its bed-in-a-box product – Purple Mattress – both online and in physical stores in select markets.

Will such partnerships be enough to save traditional mattress retailers? Time will tell, but don’t wait up.

Want to Learn More?

Don’t worry, we have you covered! For additional information and analysis of US industry trends, see Sleep Products: United States, a report published by the Freedonia Focus Reports division of The Freedonia Group. This report forecasts to 2022 US sleep product demand and shipments in nominal US dollars at the manufacturer level. Total demand and shipments are segmented by product in terms of:

  • innerspring mattresses
  • non-innerspring mattresses
  • foundations
  • sleep system ensembles

To illustrate historical trends, total demand, total shipments, the various segments, and trade are provided in annual series from 2007 to 2017.

Bed furnishings (e.g., bedspreads, sheets, and pillows) and furniture (e.g., bed frames, bed slats, and headboards) are excluded from the scope of this report. In addition, inflatable mattresses and sleeping bags are not included in this report. Re-exports of sleep products are excluded from demand and trade figures.

While you’re there, check out some of our related reports, which include:

About the Author

Chris Dyer is a Market Research Analyst for Freedonia Focus Reports. He holds a Master of Arts in Security Studies, and his experience as an analyst covers multiple industries.