The “T” word was the main topic of conversation for many at High Point Market, but those in the bedding industry are keeping cool, calm and collected.
While we wait to hear word from the Trump administration — which could be tomorrow, next week or next month — bedding exhibitors in High Point focused on the opportunities the tariffs can present to the bedding industry and how to best serve retailers during a time of great uncertainty.
The tariffs, according to officials at companies like BIA, Diamond, Kuka and more, are manageable on the bedding side because most quality mattresses are manufactured domestically.
“The bedding industry is somewhat insulated from the tariffs,” says Steve Karns, vice president of sales for Bedding Industries of America. “I don’t think it will have much of an effect on manufacturers, but it is affecting the psyche of the dealers. They have no idea today whether costs will stay the same or go up slightly or greatly.”
Karns says no price increases are planned right now, and that BIA is absorbing the costs to get commitments. At the show, the company offered heavy discounts for placement and stock orders. He also adds that retailer traffic was better than many expected for this market.
Mike Juoni, senior vice president of sales at Diamond Mattress, was also explaining to dealers that his company has taken measures to mitigate the risk of potential tariffs.
“We have a significant inventory of our overseas products so we can be ready if tariffs do hit,” he says. “That preparation gives us time to plan ahead. We are not raising prices now and don’t have plans to unless things take a turn for the worse.”
He says that it’s more productive to talk about what your company can do.
“Everything we focus on should be to help retailers with filling slots and increasing foot traffic and closing rates,” Juoni says. “A rising tide lifts all ships and when you offer real value to retailers they can engage the customer with unique features and benefits.”
At Mlily, COO Kyle Robertson said the company was seeing people earlier than usual this market, and it seems like the market has shifted forward a day, with Friday being as busy as Saturday usually is.
“We’ve has a positive response to the tariff issue,” he says. “Most retailers who have come to us aren’t concerned. and tariffs barely came up in conversation this market. No one can control it or predict what will happen, but what we can control is how we prepare for it, which gives dealers confidence in our brand.”
He says the company is not raising prices in the month of April, but it may put a surcharge in place if the tariffs do go through.
Price increases aren’t anything new to the bedding industry. The most recent anti-dumping rates in multiple countries have already affected several manufacturers’ strategies and put them in a secure place with domestic manufacturing today.
Kuka Home is one example, as the company is using its Texas facility to produce tariff-free mattresses. While the company isn’t new to the category — it’s been making mattresses for 10 years — sleep division Executive Vice President Michael Carter tells Bedding News Now that because of anti-dumping duties and tariffs, the company is getting the word out about its Texas facility.
“We’ve mostly flown under the radar when it comes to our sleep division, but with all of the uncertainty in our economy today, we wanted to make it known that we not only produce mattresses and pillows, but they are also domestically made. While supply is OK, tariffs on components may affect the prices for end consumers. We are working with retailers to preserve pricing.”
Ian Hayes, vice president of sales at Magniflex, says that adapting to the current business environment is the key to getting through uncertain times.
“Don’t wallow in the hardships; think about how you can win despite them,” he says. “Consumers are prudent and holding on to their pennies to see what will happen. Manufacturers can help retailers by diversifying their product lines and offering unique products that stand out.”
This market there were more mattress brands on display than in recent years, and Richard Diamondstein, managing director at Paramount Sleep, says that the market is getting more attention from bedding brands that used to show there and those who have never been.
“We have committed to High Point, and it has continued to evolve in a way where we are seeing more walk-ins and referrals from prospects and existing customers,” he says.
He says he is cautiously optimistic about the tariff situation, and that because the cost of lumber is up, the company has absorbed that increase and continues to hold high inventory levels. He says they aren’t planning on increasing prices yet, but they’re contemplating having to do it in the future.
South Bay International’s expansive slate of introductions included the introduction of a new top sales executive: bedding veteran Jim Nation.
Nation, recently named vice president of national sales for South Bay, returned to the High Point Market for the first time in seven years. “I’ve been coming here for 50 years,” Nation says. “This is a great place for retailers to come to find new products.”
The furniture retailers who regularly attend the High Point Market would benefit by carrying South Bay’s products, which offer strong margins and are available for quick shipment, Nation says.
Serta Simmons Bedding is represented at the High Point Market with a 6,000-square-foot showroom in the International Home Furnishings Center’s Wrenn wing to support SSB’s partnership with Ashley Home retailers, who are shopping for mattresses at this market.
Scott Bolle, SSB’s senior vice president of national accounts, says those Ashley retailers are important retail partners and see the success that SSB products are enjoying in the marketplace.
He says tariffs are “on everybody’s mind,” but added that worries about tariffs have not impacted retail visits in the SSB showroom. “We’ve had good traffic,” he says. “We’ve seen some big dealers.”
Shifman Mattresses began seeing retailers the day before Saturday’s official opening day and reported steady traffic and good meetings.
“I thought the uncertainty in the economy and the tariff situation would have been a bigger factor at market,” says Bill Hammer, Shifman’s president. “There is more optimism here than I had been expecting.”
He says Shifman has not raised any prices but is monitoring the tariff situation closely.
Therapedic International returned to the High Point Market after an absence of several years, setting up six of its Tommy Bahama mattresses on Lifestyle Enterprise adjustable bed bases in the Lifestyle Enterprise showroom.
Kyle Borreggine, Therapedic’s vice president of specialty sales, said the Tommy Bahama mattresses, retailing from $999 to $2,499, appeal to the higher-end consumers that many retailers are pursuing these days.
He noted that Therapedic has been a strong supporter of the High Point Market for years and maintained its High Point showroom when many other bedding brands exited the market.
“It’s positive to see other mattress companies coming back to High Point,” Borreggine says. “We are restarting our streak of showing here. We want to help make this market what it once was.”
Bedgear, a regular exhibitor in High Point for many years, has been enjoying another strong showing, says Jonah Nelson, senior director of brand experience. Bedgear is not letting tariff concerns slow its growth plans, he says.
“The customers coming into our showroom are trying to drive their business,” Nelson says. “They are looking for solutions. We are having meaningful conversations, and we are really encouraged by the quality of our conversations with our customers. We are a brand built on innovation, and we are not intimidated by the challenges in the marketplace.”
