The mattress industry faces a world of geopolitical challenges these days, but bedding executives are still finding reasons for optimism.
Conversations with more than a dozen bedding leaders across the High Point Market found widespread acknowledgement that the industry is currently buffeted by significant headwinds. Consumer confidence has plummeted. Gas prices are rising. Inflation remains a worry. The housing market has yet to gain steam. Retail business has been soft lately. And the war in the Middle East remains unresolved.
The current business climate stands in stark contrast to the strong growth vibes that swirled through the January Las Vegas Market, where the bedding industry traditionally kicks off a new year with a plethora of new products.
“The overall climate is definitely less optimistic than it was earlier this year,” said Gerry Borreggine, CEO of Therapedic Worldwide. “I don’t think anyone foresaw the war with Iran. Who can feel good about the uncertainty that is out there? And that uncertainty could get ramped up.”
But then Borreggine pivoted, expressing a view shared by other senior executives. “Sooner or later,” he said, “there will be clear sailing ahead.”
That combination of realism and optimism was evident in many mattress showrooms. Yes, the executives said, current conditions are worrisome. But the execs, unbowed, are moving ahead with their plans for strong Memorial Day promotions and they remain focused on executing on their own business plans.
“The macro-climate is scary,” noted Mike Juoni, vice president of sales, specialty bedding, at Molecule, which made its first High Point showing. “We acknowledge everything that is going on in the marketplace. But we have a ‘so what’ philosophy. Our job is to get our amazing beds into the marketplace and help retailers increase traffic, conversion rates and tickets. We are working on every single detail.”
And Juoni said growth is possible even in this challenging climate. “Retailers are still finding ways to be successful,” he said.
“There is less optimism now than there was in January,” said Kyle Robertson, chief operating officer at Mlily USA. “But we can’t control things outside of our own company. We need to be as consistent as possible. I still have optimism for our future.”
Added Derek Leishman, Mlily’s national sales director: “We are the captains of our own ship.”
He said Mlily is working with its dealers on hard-hitting Memorial Day promotions. “Retailers will be more aggressive than normal on Memorial Day because of price increases hitting the industry,” Leishman said.
A key focus in several bedding showrooms was the upcoming Memorial Day holiday, the traditional launch of the key summer mattress selling season.
“If the industry has a strong Memorial Day, the balance of the year will be good,” predicted Jim Nation, vice president of national sales at South Bay International.
Toby Konetzny, South Bay’s CEO, said the geopolitical climate has affected consumers’ behavior. “As the war has progressed, consumers have clamped down on spending,” he said. “They don’t have mattress purchasing in mind.”
But, he added, a resolution of the war could quickly bring an improved consumer mindset. “Consumers have short attention spans,” he said. “They forget quickly.”
Restonic President Laurie Tokarz says strong holiday sales are coming. Memorial Day sales, she predicted, “will be strong.” And July 4th sales, when the nation celebrates its 250th anniversary, should also be buoyed by aggressive promotions, she added.
Restonic shared a showroom in High Point with its new licensee partner, AW Industries, which is featuring a patriotic-themed Sleepwell line designed for holidays sales.
John Schulte, president of Symphony Sleep, making its first High Point showing, says retailers have not decreased their commitment to strong Memorial Day sales even as some economic conditions have worsened recently.
Bedding executives said they are still working hard to grow their businesses.
Jordan Beck, president of Heritage Sleep, says he’s optimistic about his growth plans because his company is serving a larger retail base. “We are looking for a larger piece of the pie,” he said. “We are bringing on more reps, which leads to more business.”
Heritage has expanded its business into the Midwest and the West Coast. “Retailers are looking for more options,” Beck said, and Heritage is providing them as it expands its dealer base.
Jamison Bedding, which returned to the High Point Market after a two-year absence, has refreshed its product lines and strengthened its values, said Dennis Straily, president. And the company is showing those new lines at open houses and road shows as it aims to grow its business.
Bedding producers serving the high-end of the market said they remain optimistic as their consumers are more protected from headwinds in the economy.
“I am optimistic, for two reasons,” said Bill Hammer, president of Shifman. “First, the geopolitical mess will end at some point, which will provide opportunity in the market. Second, Shifman has a different perspective on what is happening in the industry. We can grow our business even in difficult times, because retailers are looking for and need something different. Opportunity arises when there is stress in the market. That’s when you get the new business.”
“We are in a niche where we are selling premium and ultra-premium products,” added Richard Diamonstein, managing director of Paramount. “We’ve been focused on this category for 10 years. Our sales are growing.”
Paramount unveiled new branding for its high-end Hypnos line, which continues to gain ground in the market, Diamonstein said.
