A traditional matt ress store is an essential component in the world of retail. Over the last few decades, mattress stores have grown in scale and specialty to become mattress showrooms and superstores. Optimally, the modern mattress retail landscape is a sea of specialized sleep shops sometimes referred to as bed superstores with recognizable names that work together as franchised entities for new brand introductions, cooperative advertising, e-commerce, and backend operations. These bed superstores are important places to understand in order to prioritize retail anthropology and unpack the shopping process at a modern mattress outlet. When we think of bed superstores, we think of brick-and-mortar stores that focus on selling mattress es, pillows, bed frameworks, bedding, and other sleep-related items, effectively giving the customer a one-stop shop for sleep. The primary focus of the store is mattresses, and all offer different levels of customization and personalized consultation. Most will have staff help with finding the right mattress for you and what you find to be comfortable. In fact, their business was built on a 30-minute custom fit consultation service with trained sleep experts. This consultation process is worth the investment for those customers with more than 2,000 needs and fits. They also serve as a brand presence touchpoint for shoppers who are awaiting credit approval, simply doing further research, early discovery, and browsing mothers-to-be, and approximately 80% of those walking in with an actual mattress in their car ready to purchase. Each bed superstore has store managers who have regional training, a small marketing, event, public relations, and social media budget, backend systems and reporting, in-house mattress delivery and assembly, and sleeper showrooms with high-touch fittings.
Definition and Concept
Bed superstores have become an important part of the mattress retail market during the past 20 years. A bed superstore can be simply defined as a larger store that offers a complete line of bedding products, including mattresses, home furnishings, and bedding accessories. Larger full-line furniture stores now also operate bed superstores, concentrating their bedding line in a separate location or as a separate department within the store. Additionally, superstores have a freestanding identity; they can also be a part of a strip mall containing other businesses. Bed superstores offer unique services in addition to an unmatched sleep collection for the customer: designer mode beds, lifetime comfort guarantee, best deal promise, etc. These superstores are not fundamentally retailers but are more like a single-subject specialty retailer who has the space to show an entire line of merchandise and has the one-stop shopping concept like a warehouse supermarket or an auto superstore.
These large-volume specialty stores are in the prime retail locations of inner-city America, with anywhere from 25,000 square feet and up. They seek primary markets ranging in size from 75,000 to over a million, representing middle to high-income families. They have anywhere from $750,000 and up per week in retail sales. It is a known fact that the consumer is looking today for larger selections and also sophisticated designs in just about every product line, including beds. Mattress showroom superstores offer the consumer what they are looking for with floor samples as well as literature and models to order from. The superstore is a complete line of bedding products with one-stop shopping.
Historical Background
Retailers offering a variety of products for purchase by consumers are economic institutions whose importance and significance have evolved over the course of American history. The market for mattress retailers provides one case example of the changes in the U.S. retail landscape and an analysis of one particular retail product. For much of the twentieth century and into the early years of the twenty-first century, the business of mattress retailing was endemic to the United States. Sleep shops, or mattress retailers, were often family-owned and operated businesses that catered to the specific needs of their local communities. For years, the dominant outlet for the purchase of a new mattress and box set was the local department store. In the 1970s and 1980s, what we describe as bed superstores emerged as entrepreneurs sought to consolidate demand under one roof.
The impetus for this trend was due to a confluence of changes on the supply side of the mattress industry and the demand side of the market. Quite simply, twin-sized mattresses were once produced on cotton batting and were handmade by farmers as a way to generate revenue on a particular cash crop. At the end of the nineteenth century and the beginning of the twentieth century, foam was invented largely by engineers and improved upon by scientists. One scientist in particular showed a sample of what would come to be a nationally marketed foam mattress at a major exposition. While sleeping habits for many did not change or “improve” terribly much after the introduction of foam rubber, they allowed for other products to be produced as spin-offs, including cushions and pillow stuffing for the military for soldiers in continuous close combat, as foam is able to take on different shapes and will leak faster than cotton when damaged.
The Rise of Bed Superstores
Twenty years ago, the idea of shopping for a bed in a giant bed store would have seemed outlandish. It was not too long ago that the majority of people preferred to buy a bed from family-owned shops with low rent locations. Recent market trends have encouraged not only the expansion of double-sized furniture stores but also the large bed specialty superstore chains. The Internet of today is filled with commercials about frame sale prices, mattress prices, and bedrooms that are created for customers who realize that they cannot sleep on old furniture any longer. How can there be so many furniture stores just to sell bedrooms? Because they work. These giant bedroom destination superstores have recently been popping up all over the state. There are many businesses driving the bed superstore revolution, and its companies are operating.
What is driving this movement? If you were to look at some of the driving forces behind the giant superstore movement, you would find snippets from prolific industrial speeches. CEOs from warehouse superstores have been quoted, “In harsh economic times, once you have something, you want to know for sure that you really got your money’s worth.” Convenience is what gets them in the door. Today’s market dynamics are unique. The Internet opens the door for all consumers, from the extremely time-constricted to the affluent who have plenty of free time to research options for weeks or months on end. In addition, the few exclusive and prestigious brands are becoming less and less of a draw as the flashing yellow sale signs are being perceived as significantly more important. Consumers are not the same; they are more cost-conscious and motivated than ever. Known as quantity convenience, variety, lower cost, and better value.
Market Trends and Growth Factors
The end of the mattress famine is at hand. Mattress retailing is a $16 billion retail market that comprises some 15,328 specialty mattress stores. The conventional superstore has obviously taken the lead in this market. While this is due to several factors, retail trends show growth in two key areas: specialty and selection. The bulk of the population focuses on convenience, health, and personalization of the shopping experience. In short, consumers are overwhelmed by how to shop, when they shop, and how they choose what to buy. Society’s growing interest in health, wellness, therapeutic services, and the pursuit of comfort and convenience provides a product niche for specialty bedding stores.
Several market trends are taking shape that drive superstore growth in the industry. The aging U.S. population places a higher value on its health. The combination of the obesity epidemic, aging Baby Boomer population, and a growing trend towards superior health perpetuates the specialty shop movement. Second, the digital age has transformed the way we shop and what we expect our shopping to be, and our merchandise should deliver. This results in time and intensification of people wanting to shop and research. Finally, pricing and new mattress technologies have pushed the price of a bed to a median price that is attractive to spend more for. The low-price leaders within the superstores and the constant introduction of memory foam and high-price media-backed beds make this an item consumers turn over in their purchase research. Users either need the edge of the lowest price or are drawn by technology to move them to the superstore to check it out. Mattresses that have computer and/or technical interfaces point to the retailer offering the opportunity to feel the technology before ownership.
Key Players in the Industry
Within the bed superstore retail industry, there are a number of key players that are shaping the competitive landscape of the industry. Many of these entities are national brands that operate across the U.S., while others are regional chains. Many of these companies have been acquiring other retailers in the past decade and continue to dominate the mattress side of the specialty store sector. As more and more national brands grow, they aim to put a unique offering against their competitors and continue to push regional chains out of the industry.
The limited data metric shows the concentration of the market, as the top seven operators collectively own more than 50% of the store count in the industry. One advantage of having a wide national footprint is the ability to offer warranty and after-sale service support, as one dealer can service someone who has moved across the country. Many of the major beds-in-a-box that started off only as e-commerce have also partnered with actual retail stores to offer a hands-on testing experience for these bed forgoers and grow a larger footprint nationally than they are able to on their own. But major chains are not alone in this, as a few larger independents partner to offer name brands, aiming to set themselves apart from other independents and take back some of the market share the chains have encroached upon. Additionally, many top chains carry their own exclusive bed-in-a-box brands, trying to set themselves apart in the consumer’s mind. Some national name brands also have exclusive partnerships, helping lower its role in this top-ranked company.
The Mattress Industry in Bed Superstores
The mattress industry accommodates a wide variety of consumers, from high-end to discount purchasers. Having a range of products that can be grouped by both construction and sleep systems allows manufacturers to provide a product for almost every consumer. Although comfort remains a top priority of mattress sales, increasing the availability of products to meet individual needs is becoming more important to a growing number of consumers. As traditional sleep shops have moved from strip center locations to freestanding and storefront locations, new bed superstores have opened to sell inexpensive, first-copy, and high-end mattresses. Larger selections have been included in superstores, catering to a wider range of consumers. This has included mattresses, foundations, and bed frames with options in every classification.
Mattresses are branded differently from store to store, allowing the consumer an illusion of product differences and a wide range of price points. Bed superstores often openly advertise products from a narrow spectrum of quality and price, encouraging competition from other retailers at the same price point. The average price for a mattress continues to rise as consumers have spread their purchasing decisions over a growing number of brands and models in these superstores. The correlation between price and quality is not consistent; however, consumers who only consider price and not build when buying a mattress will often purchase inferior models based on the store’s warranty assertion. Larger trends such as personalization, waterbeds, suspension, and temperature regulation often gain traction in the high-end superstores, influencing the amount of products being introduced at bed superstores.
Types of Mattresses Available
There are many different types of mattresses out there to suit each individual’s preferences. The most common types of mattresses that bed superstores offer are: innerspring, memory foam, latex, and hybrids. Innerspring mattresses are the most traditional mattresses and generally the least expensive. They are also the bounciest, if that is essential to the customer. Unfortunately, both innerspring and memory foam mattresses do not hold up well over time and often develop soft spots due to compression from the body. On the other hand, a latex mattress can last three times as long, reducing the need to purchase a new mattress so frequently.
Hybrid mattresses combine the best of both worlds by featuring individually wrapped coils on the bottom for that extra bounce and memory foam, latex, or gel on the top for extra comfort. Hybrid mattresses have the closest feel to the innerspring mattress but provide the same durability and conformity that the memory foam and latex top layers provide in the all-foam mattress. Beyond the types of materials, the construction and configuration of the mattresses promote strength and durability as well as overall support and comfort. Innovations have been made over the years to mattresses to improve the overall quality of our sleep. A major improvement in sleep technology has also been made with the addition of cooling technology in mattresses. Sleeping hot is one of the most common complaints with memory foam mattresses, and adding cooling technology or gel to mattresses has helped mitigate this complaint. Nowadays, all mattresses come with cooling technology to keep you at the perfect temperature at night.
Technological Advancements
Over the years, mattress comfort has seen great advancements in materials. Gone are the days when an innerspring mattress was the gold standard for a good night’s sleep. With the advent of memory foam, consumers began craving more so that restful sleep could be achieved. Now, mattress materials include innersprings, foam, latex, and new advancements with cooling gels and smart technology being part of the upper echelon of mattresses. Technology has also made its way into many aspects of the industry, including consumer shopping and manufacturing.
The mattress manufacturing process is a perfect place for technology. Machine integration can add technology and efficiencies that speed up the manufacturing process while maintaining consistency. Gadgets in place today are used to laminate beds together, push foam blocks into forms, and even measure and cut each individual piece of foam. USA-made bed and sleep technology have improved, making family traditions last longer with better products that have increased their sales potential. With an influx of subscription-based websites where mattresses are delivered to your door in a box, all the beds are programmed to fit the consumer with their best interests in mind. Consumers are given a trial period to test out the mattress in their own home, and if it doesn’t do the trick, a mattress can be returned and donated back to charity at the end of the trial period. Consumers are then issued a full return of their money. Customer service has been enhanced with online support, including through social media channels.
Major bed retailing companies are always trying to stay ahead of trends and keep consumers interested in spending money with them. Examples of online interaction include virtual reality showrooms, mattress selector quizzes, and helpful videos on how to sleep. Research has shown that Americans are sleeping fewer hours each night; the term sleep hygiene is even being thrown around in the healthcare industry to describe the practice of promoting good sleep habits. Firms that have listened to what consumers want and accept change in product designs will be the pace setters in the industry of mattress retailing and bed superstores.
Consumer Behavior and Preferences
Consumers visiting a bed superstore can have several characteristics affecting shopping behavior and, therefore, the final mattress market. First, a price-sensitive attitude of consumers in the event of an unplanned purchase is detected. The mattress industry is characterized by a very slow purchase cycle, indicating infrequent and unplanned mattress purchases. Second, high engagement towards a new product requires much product knowledge. In the mattress industry, brand emergence is limited and therefore not of great interest. Brand fidelity is not particularly pronounced in this industry. Knowledge-reducing decision strategies basically try to facilitate subsequent decision-making and comprise making gut-level decisions or simple heuristic rules.
Consumers might also be susceptible to small differences in marketing activities, to egocentric tendencies leading to oversampling of negative or currently salient information, and to conclusive negation of a product when their emotional response to a cue drives them to make uncomfortable or aversive decisions. Furthermore, the luxury as well as the health, physical, and mental suitability aspects are among the main attributes influencing consumers’ evaluation, decision-making, and price willingness for mattresses. This is in particular due to the high degree of involvement in the purchasing decision process, facilitated by a variety of personal considerations. A feedback effect of customer satisfaction reversing the purchase stages can establish brand loyalty and lead to positive word-of-mouth. Customer relationships are particularly strong in the so-called relief generation.
Shopping Habits and Decision-Making
Shopping habits in the mattress industry strongly affect innovation and trends in the mattress and bedding category. To maximize customer satisfaction and company profits, it is important to understand how shoppers buy and select bedding and other non-durable products such as mattresses, and what factors are most important in their decision-making processes. There is a fairly substantial amount of data on shopping trips to bed superstores, the average time consumers spend researching products, and the most important factors in their decision-making process. The objects of shopping trips and experiences during these trips are also closely examined. There is additional information about how to best compete in a brick-and-mortar environment and integrate online experiences into the shopping experience.
At this time, upwards of 60 percent of people in developed countries shop for bedding in consignment stores and other discount businesses, such as warehouse clubs. The majority of people shop for bedding less than two or three times a year. Typically, people will spend a week or two shopping around, or even weeks researching mattresses before they make their purchase. When they shop specifically for a mattress, 40 percent of people will make several trips before making a final purchase. Lying on a test model is usually important, and we know that two-thirds of new product purchases (such as mattresses) are based on personal preference as a characteristic. Most people pay attention to price, but we know that other important factors are comfort, brand, warranty, and what the bed is made of. Opportunities to buy products at sale prices are also important to people, and about 30 percent of people make their purchase decision solely because the product was on sale.
Finally, once a person has made his or her purchase decision, the experience can have a significant impact on satisfaction. Convenient delivery options, purchasing with a credit card, and being able to drive out with the product are important options to some people. People also like to be treated well and have the opportunity to talk with experts. A quarter of people look for good salesmanship and customer service with trial periods, which can satisfy a number of customers in terms of their purchase decision. Many consumers use mostly internet work to research mattresses and other bedding before they go shopping. Common on the trip, about 30-70 percent of consumers utilize coupons and promotions instead of relying solely on discounts given to those who choose to buy in-store. E-learning is commonly used during shopping trips, with more than two-thirds utilizing smartphones, and 75 percent of consumers using their smartphones mostly or exclusively to inspect online reviews and prices of non-mattress bedding items.
Future Trends and Innovations
As society has become more focused on sustainability and the impacts of our monthly decisions on the world around us, customers have started to prefer and show more interest in natural fibers. Because of this, retail stores will soon demand a “sustainable” or “eco-friendly” mattress with materials such as natural latex, wool, or organic cotton. As resin costs continue to rise, so will foam prices. With luxury markets in full effect, we also expect to see more and more hybrid mattresses packed with innerspring and foam. Bamboo is already a hot item due to customer interest in natural fibers. As a result, we should anticipate a variety of hybrid options packed with both bamboo and foam. Customization will be the future of retail. Today’s innovative foam molding technology allows manufacturers to craft products to a person’s specific requirements and selling price. Customization will be seen in mattress sizes, profiles and depths, consistency levels, and overall bed categories moving forward. Future resellers should collaborate with producers to ensure they have products that meet their particular needs. Storefront concerns are irrelevant. Retail is turning digital, and the customer experience is evolving. While some people will always enjoy the brick-and-mortar buying experience, more and more time will be spent in exploratory in-app purchases. Makers and stores that are early adopters of technology will find the consumers that are available for their latest and upcoming products. Augmented reality will allow users to check out fresh mattresses in the comfort of their own homes. Aggressive retail sales will exist as a part of brand new products. Aggressive suppliers will develop new products and sell them straight to customers through their websites. Every industry will soon carry more factory-style producers, so consumers and retail clients will have completely different matters. Stores must continue adjusting to meet the demands of consumers, or they will fail. Customer feedback must be tracked and incorporated by manufacturers. If customers dislike memory foam, retailers and manufacturers should find ways to remove or disguise it. Marketers should keep a close eye on current perception feedback in order to best know how to sell the mattress. Social media, customer feedback, and other real-time input platforms are just a few examples of customer input.
Sustainability and Eco-Friendly Practices
Sustainability and being environmentally friendly have moved to the forefront of countless industries in recent years. This is largely influenced by increased consumer demand to support eco-friendly practices and products. More than ever, sustainable and green practices have a major impact on buying decisions and the choice of preferred brands and products. Many companies, including a growing number of bed superstores, are making significant changes to their products and services in order to reduce their environmental impact. With the increasing demands for sustainable and green products in the mattress industry, many brands have become eco-friendly, sourcing new and sustainable materials and finding new techniques to reduce their carbon footprint. Some brands use naturally hypoallergenic bamboo fabric cases and packaging made out of recycled plastic. Other brands are also eco-friendly, offering not only mattresses but pillows and other products all made with non-toxic materials and shipped in eco-friendly packaging.
Reducing waste has become increasingly popular and is a large focus in the mattress industry. Some companies have mattress recycling programs, stating that many local places will take a used mattress to recycle it, while others in the region won’t. Selling eco-friendly mattresses or offering eco-friendly perks to consumers can differentiate your store from competitors in the mattress industry. Higher consumer demand anticipates environmentally sustainable products in your company, so why not include green values in your company’s mission and business plan? Certifications for sustainability and environmentally friendly practices are among the top reasons to switch to a green product. Many biodegradable labels and applications for mattresses eliminate the chances of increasing negative footprints on the environment. Where eco-friendly packaging is becoming the norm, with more businesses changing the usual plastic to cardboard, biodegradable materials in a mattress can bring the promise of decreasing more plastic-based pollutants in the world. Some popular options include latex, memory foam, or innerspring mattresses made with upcycled materials, which are mattresses simply remade from preexisting and used components.
Retailers and manufacturers of mattresses, from local to commercial business operations, have found exciting ways to create new mattresses and innovate their materials. Some mattress retailers are taking up comprehensive ecological and sustainable plans to better sell to the conscious market. Many businesses pride themselves on these programs and make their footprints transparent for any consumer to access. Not only is being eco-friendly expected of businesses anymore, in markets like the mattress business, being eco-friendly can bring the company to a plateau larger and more competitive for growth in the industry. Some of these financial advantages include a valued niche in the mattress market, reduced negative impact on the business environment, and recruiters for a business more likely to engage in sustainability practices. Customers like to see businesses that normalize social and environmental change and integrate sustainability into their workflows. By using a new workforce or marketing, the business now focuses on a blend of better performance and corporate sustainability; a significant number plan to implement this in the next few years.
