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Mattress Industry Idea Proposal

Mattress Industry Idea Proposal

Research Question: Is the mattress industry going through a price deflation or are prices holding up?

Report Available: Feb. 25, 2016


Blueshift’s initial research finds strong mattress industry data through December, with future trends indicating younger home buyers driving sales. However, a turning point could be imminent as online mattress companies undercut and vilify brick and mortar stores, which could be just enough pressure for an oversaturated mattress retail market to engage in a price war.



  1. The U.S.mattress industry will eclipse $9 billion in 2016, led by TPX which holds a 31% market share, with Sealy at 19% market share in 2015 and Tempur-Pedic at 12%. TPX’s sales grew to $880 million in its Q3 and beat Wall Street’s EPS estimates. The company announced it would cut its work force by 2%. A channel check found that TPX sales had increased by 7% in November.
  2. Recent downward pressure in mattress pricing has been cause for alarm. An increasing number of online market entrants undercutting brick and mortar retailers is one possible cause for falling prices. Mattress retailers’ classic promotional strategies based on price and product may not effectively attract millennials who generally seek an experience when making a purchase decision. Online mattress retailers point to a litany of reasons why a consumer should choose them over a brick and mortar store, namely lack of exorbitant markups and high-pressure salespeople. An overabundance of standalone mattress stores running heavy promotions may be extra sensitive to market share loss to online retailers.
  3. Millennials are reaching their early 30s and starting families, overcoming the self-serving anti-family reputation that has been generalized upon the group. Experts believe they will drive a home-buying boom which could also boost mattress sales. Data from November showed mattress sales increased 4.9% from the previous year. Average unit selling price rose by 1.6% and wholesale dollar value rose 6.5%.​


Are mattress pricing, inventories, and sales remaining relatively stable? Does a mattress bubble exist, and if so, is it about to burst? Can online retailers make a dent in brick and mortar mattress stores? Will younger homebuyers be turned off by brick and mortar sales, promotional, and merchandising strategies? To gain insight into pricing the mattress industry,  Blueshift will gather data and issue a market research report from independent sources in the following areas: Brick and mortar mattress retailers, Online mattress retailers,  Mattress  manufacturers, Supply chain, Marketing firms specializing in mattresses/bedding,  and Industry specialists.


Companies: Tempur Sealy International (TPX), Select Comfort (SCSS), Mattress Firm (MFRM), Macy’s (M), Ethan Allen Interiors (ETH), Costco (COST), (OSTK), Walmart (WMT), Wayfair (W), Sears Holdings (SHLD)


Research Begins: Feb. 8, 2016