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You’ll find trending products our customers are excited about, and suggestions based on items you’ve recently viewed and purchased. Futon mattresses are traditionally made from packed cotton, although today many are filled with wool, foam and other materials, and some even have coils. The USD 780m tie-up would give the combined mattress retailers a national presence across 48 states and 21.3% share of the market for retailers specializing in mattresses, according to a Mattress Firm presentation to investors. Overall concentration in the mattress store industry is low, with many outlets that are single-store and regional operators, according to a report provided by IBISWorld.
Regulators will also likely want to separate and examine the market for specialty mattresses versus traditional mattresses, the two attorneys said. Traditional mattresses, which comprise 49.3% of the US bed and mattress store market, support the body with springs and are the most affordable form of mattress,” according the IBISWorld report. Specialty mattresses comprised 43.3% of Mattress Firm’s total net sales in 2014, while conventional mattresses comprised 47.2%, according to the company’s most recent 10-K filing. Most people will not buy such mattresses without testing them first, the second antitrust attorney said.
Sleep-centric retail stores such as mattress Firm have gained significant market share at the expense of traditional furniture and department stores” because they carry a wider product selection, have a more knowledgeable sales force and more dedicated floor space,” according the 10-K. Big-box retailers also have not gained significant market share over stores such as Mattress Firm and Sleepy’s in part because they do not wish to carry products as bulky as mattresses, according to the 10-K. The internet, too, has gained limited traction,” as it is difficult to compare mattresses across retailers online, the filing read.
Mattress Firm still listed among its competitors department stores, national and regional chains, local retailers and warehouse clubs such as Costco (NASDAQ:COST). If regulators target the market for specialty mattresses and conclude the Sleepy’s and Mattress Firm are in a class above their competitors, then maybe we have a larger problem than we initially thought” in geographies where there is overlap, the first antitrust attorney said. That antitrust attorney also questioned the extent to which competition would truly be replaced in areas where divested stores could be sold to other mattress retailers.
The second attorney said that the divestiture-buyer would also likely have to compete with a combined Sleepy’s and Mattress Firm in terms of distribution capability. Regulators could also want to examine the relationships that Mattress Firm and Sleepy’s have with manufacturers, the first attorney said. Mattress Firm currently relies on Tempur Sealy, Simmons Bedding and Serta as primary suppliers of branded mattresses, according to the 10-K. Product purchases from those three manufacturers accounted for 77% of the company’s mattress product costs for 2014, according to the filing. I also read all of the reviews on the Leesa site and I liked what people were saying.
We believe that the strength of our supplier relationships enables us to source our merchandise in a more cost effective manner than our mattress specialty retailer competitors, as well as receive higher vendor incentives and advertising support,” Mattress Firm said in the 10-K. Mattress Firm and Sleepy’s combined revenues from retail sales in 2014 totaled about USD 2.6b, according to the report provided by IBISWorld. So we started looking and like many of you know, a mattress is going to be a huge investment so you better get it right!
I first heard about them HERE and because I have been reading Jenny’s blog for years I appreciated her honest review of the mattress. I was surprised to see how small the box was for a king size mattress and actually wondered if we had received the wrong size at first! It was so soft yet firm and I couldn’t believe how well we both slept that first night! We have been sleeping on the mattress now for about 2 weeks and I will honestly say that I can only recall one time that I have had to ask my hubby to roll over from his snoring.