No one could have predicted that so much change and consolidation would happen in the bedding industry in the span of one year.
In case you need a refresh, in 2023 alone:
- American Mattress merged with US Mattress.
- 3Z Brands bought Nolah and Leesa.
- Bedding Industries of America merged with Saatva.
- Purple dealt with a monthslong lawsuit brought on by its largest shareholder.
- SSB emerged from bankruptcy and opened a 500,000-square-foot factory.
- Tempur Sealy announced plans to acquire Mattress Firm in early 2024.
And we still have one month of the year left.
At the beginning of this year, a curious reader asked me if I knew of any Top 10 lists of online mattress sellers by revenue. There wasn’t one available to the public, to my knowledge, so we made one based on 2022 or the most recently reported revenue.
But with all of this change in under 12 months, we thought it would be a good idea to refresh the list and update some of the information.
Beyond that, I offer some general observations about each one based on what’s happening now, the company’s websites and social presence, and what I’ve recently seen and heard from others in the industry.
- Ashley Furniture Industries – estimated $12.3 billion
Ashley continues to dominate because of its size — and its overall revenue has grown nearly $2 billion so far this year alone, according to Forbes data. But its mattress program isn’t anything to underestimate. With an extensive lineup and a solid selling strategy, the company has success with bedding. However, there doesn’t seem to be a specific breakdown of Ashley’s mattress or online businesses. If you know of one, please let us know.
- Tempur Sealy – estimated $6.8 billion
This number reflects the company’s most recently reported revenue with no breakdown of solely online sales. The company is profitable and perhaps growing ever more as they gain trust in the Mattress Firm deal. Tempur recently released a statement saying it “certified substantial compliance with the Federal Trade Commission’s second request for documents and information pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of 1976,” and CEO Scott Thompson added that he’s excited to “further accelerate [our] shared opportunities.”
This leads to the question of what those numbers will look like if the acquisition goes through. Mattress Firm’s estimated revenue for 2021 — the most recent we could verify — is $4.4 billion.
- Serta Simmons Bedding – estimated $2.4 billion
With SSB out of bankruptcy and back in the game with a shiny new facility, it may be making a play to take on Tempur Sealy by picking up retailers that aren’t happy about the Mattress Firm deal. However, their leadership team may still be a bit unstable, as recent CEO Charlie Eitel — who returned to help turn the company around after bankruptcy — left the company a few weeks ago. Time will tell which way the pendulum swings for SSB.
- Sleep Number – estimated $2.1 billion
Embracing tech as a key selling point, the company introduced its next-generation smart beds that use “embedded, research-grade sensors and artificial intelligence (AI) to learn the unique biometrics and sleep patterns of each sleeper, and automatically adjust to meet a person’s changing needs,” according to the company. They also launched a large-scale campaign with celebrities Dwyane Wade and Gabrielle Union to promote different sleeping preferences.
- Resident Mattress – estimated around $700 million
Resident has five brands under its belt — Nectar, Dreamcloud, Siena, Awara and Cloverlane, and it’s a brand that draws people into retail stores. The company also does an excellent job of training salespeople on its product. The company most recently reported $500 million in sales a year in 2020 so it’s possible Resident’s total revenue for 2022 sales could be $700 million, or higher. Have other thoughts? Let me know!
- Purple – estimated $650 million to $690 million
The company announced that full-year 2022 net revenue decreased nearly 21% to $575.7 million, compared to $726.2 million in 2021. However, the company is on a mission to grow, striking an exclusive deal with Mattress Firm and hiring several new industry insiders for its team.
- Bedding Industries of America – over $500 million based on Saatva
Working behind the scenes with Bedding Industries of America, Saatva grew to $400 million in sales in 2021 by building its national manufacturing and delivery distribution network and focusing on designers. Previously it only sold online, but now the company has plans to open mattress showrooms in 50 major markets over the next four years — with 13 already open.
It’s hard to say what the annual revenue will look like combined with BIA’s — as the company doesn’t release financial information — but it’s likely to grow.
- Casper – estimated $500 million
Casper has been focusing on brick-and-mortar partnerships, but for the most part they’ve been quiet this year. The big news is hiring a new chief marketing officer and chief sales officer which is part of the company’s expansion. As CMO Jeff Willard told Bedding News Now in an interview earlier this year, the company is continuing to put a huge focus on what it does best: marketing.
- 3Z Brands – over $200 million to $400 million, based on Leesa
3Z Brands is a private company and doesn’t release financial information. But with the addition of Leesa to its collection, which also includes Brooklyn Bedding, Helix, Birch, Bear and recently acquired Nolah Sleep, they may be one of the top online sellers in the nation. The company is ambitious and no doubt has a few more tricks up its sleeve for 2024.
Please feel free to contribute to this conversation so we can update this article and offer it as a resource to the industry: firstname.lastname@example.org.