Let’s start with the obvious. Business is tough. Our country is at war in the Middle East. Gas prices are high. The geopolitical climate is challenging. The mattress industry is mired in a long-term slump.
So what should the industry do?
A veteran, respected retailer offered some wise counsel at our Best In Bedding event at the recent Las Vegas Market. And he wasn’t just throwing out clever ideas, which ChatGPT and any number of “industry experts” might do; he was sharing his own remarkable story of reinvention and success.
Keith Koenig, the chairman of City Home, the Florida-based home furnishings retailer formerly known as City Furniture, and last century, known as Waterbed City, gave a compelling summary of his home furnishings journey. And he also gave the industry a great playbook on how to survive and thrive in tough times.
We presented Koenig with our Bedding Legend Award at our well-received Best In Bedding event, which we presented in partnership with Andmore, and with the support of sponsors Bread Financial, Snap Finance, and Serta Simmons Bedding.
Koenig said two retail lessons that served him well were the importance of thrift and perseverance. He and his brother were successful waterbed retailers in the 1970s and 1980s, but then “change happened,” and waterbed sales began declining. The Koenigs and only a handful of other leading waterbed retailers were able to survive that sea change and convert their businesses to serve the broader home furnishings market.
The first City Furniture store opened in 1994 – and was an immediate success. “You have to be nimble,” Koenig said.
That same spirit led City Furniture to recently reinvent itself as City Home, aiming at a bigger market for home goods.
Koenig wrapped up his insightful talk with some much-needed words of encouragement. “Wonderful business is coming,” he predicted.
I’ve thought a lot about Koenig’s talk as I’ve been processing the industry feedback I received at the Las Vegas Market. Truth be told, some of that feedback was depressing. In fact, that was the very word that one industry exec shared with me when I asked him about the vibe in the mattress industry these days.
There are definitely depressing trends, chief among them a continuing contraction of the mattress market, but it’s unusual to hear that level of gloom at market, where optimism – “cautious optimism” to be more precise – is usually the phrase of the day.
Another executive said the industry vibe is one of frustration. The economy continues to vacillate. Tariffs add uncertainty. Costs of goods are rising. The industry is selling at higher price points, but there are fewer consumers in stores. When is the turnaround coming?
Both of those executives were sharing valid viewpoints in their off-the-record conversations with me. And I think they both raise a critical issue: What do we do now?
This isn’t our first rodeo. We have faced challenging times before. We have survived recessions. We have seen some markets dry up, only to see new markets open up.
As I look ahead, I’m heartened by Keith Koenig’s message. Change happens. How will we adapt to it? Thanks, Keith, for the inspiring example you give us on how to persevere and ultimately find success in changing markets.
