No rest for mattress sellers in sleep-deprived market
New York is Full of Countless sleep-starved residents who Will pay anything to get a fantastic night's rest, however, the town could be harsh on futon mattress vendors. Almost a dozen merchants, such as Lerner Sleep, Hillside Bedding and Kleinsleep, have gone out of business, left the business or been purchased by rivals. "There are numerous Men and Women who've gone bankrupt within this Company," states Harry Acker, chairman of Bethpage, L.I.-based Sleepy's Inc..
"We really have four individuals working for us who conducted bedding chains which went bankrupt." The vicious nature of the company is not holding back the town's Inhabiting bedding chains. Sleepy's, Rockaway Bedding Inc. and Dial-A-Mattress are furiously opening new shops in the five boroughs and pouring thousands of dollars into local marketing campaigns. Furniture world's '94 winners and losers
"Together with of the expansion happening in the Current Market, you would think Individuals were purchasing mattresses each five minutes, rather than the average of each 10 decades," states Jeff Bonham, executive vice president of sales and promotion to Rockaway Bedding. His Randolph, N.J.-based company expects adding eight shops this season into the 15 it works in town. At stake is a $500 million neighborhood market That's expected to grow 10 percent this year, according to the International Sleep Products Association.
But while earnings from mattress sales are rising and across the nation, warning is in order: This is a company which has a record of overexpansion. "You hear rumors All of the time that some opponents Aren't Doing nicely," states Mr. Acker. "It is quite simple to get into the company; it is almost impossible to keep inside." Regardless of the treacherous waters, Sleepy's, a regional series with 20 shops in town, plans to start another five this season, such as a 9,000-square-foot mega-bedding centre on Fifth Avenue and 39th Street.
Long Island City, Queens-based Dial-A-Mattress, that at once offered its products almost exclusively by telephone, will include 10 websites this season into the 40 it works locally. More spending Luring shoppers into these stores necessitates big marketing budgets. Sleepy's is spending over $20 million to broadcast its "Trust Sleepy's, for the remainder of your life" advertisements on radio and television. Its expenditures on local radio were up almost 40 percent in the first eight weeks of this year. Betting on bedding: mattress vendors look to September Market to start turnaround
Meanwhile, the Dial-A-Mattress is spending approximately $10 million on ads this year, a 10% growth over this past year. "It is about reaching out and engaging customers about The health advantages of better and new mattresses," says Luis Barragan, president of Dial-A-Mattress. "There's a large dearth of knowledge on the market which we're attempting to fulfill." Health consciousness is among the largest growth drivers at the Marketplace. As most consumers can not put aside more time for sleeping, they're doing the next best thing by purchasing fresh and higher-end mattresses.
"Sleep Is Most Likely the most important thing consumers can Work to increase their wellbeing," states Jerry Epperson, an analyst with Ferris Baker Watts Inc., that follows the mattress production enterprise. "Therefore, there's been a good deal of focus on bedding" Sleep stores now control 39 percent of mattress earnings, compared with 38% held by department stores, according to trade publication Home Furnishing News.
Though there happen to be mattress experts from town, these stores began to obtain major floor against department and furniture stores in the 1980s-only to confront a shakeout in the 1990s. They may Find a larger share of this Current Market, though, as sleeping Tastes get more complex. Due to the larger volume, specialty shops often get better deals and selection from producers, and their greatly trained staffs tend to be better able to close sales.
Consistent advertisements by the significant sleep chains to the specialty shops also can help lure repeat clients. Flat unit sales The question is if there are sufficient shoppers to go around. A lot of the increase in the mattress marketplace is coming not from an increase in units sold, however by a increase in the quantity of money spent each unit. http://futonszone.com/private-label-bedding-program-set/
Nationwide, consumers purchased 39.7 million mattresses from 2003 up just 1.8% in the preceding year, although they paid slightly more than $5 billion-an growth of 5.8 percent. Analyst Mr. Epperson quotes that customers currently spend an average of $1,600 for a new mattress, in comparison to $1,000 two decades back. LUIS BARRAGAN, president of Dial-A-Mattress, says that his company is reaching out and Engaging clients about the health advantages of purchasing a better mattress.