Challenges in Bedding
On Bedding
January 2008Bedding, like the rest of the furniture industry, is facing a tough couple of years. According to industry experts at Mann, Armistead & Epperson, Ltd. in its latest overview of the mattress industry, bedding sales will be up, but not up as much as the industry has become accustomed to.
The report is calling for a slight decrease for furniture and bedding for this year, but it doesn’t forecast a full recovery until 2009.
For 2007, the bedding category missed the heavy inventories and weak sales furniture stores suffered, and the category has weathered the flammability issue fairly well with new standards going into effect in July.
As part of its 52-page report, the firm lays out challenges and its concerns the bedding category faces this year. Here’s a look at those challenges.
1. Shift in Channels
Over the last 30 years, furniture stores have lost the leadership market position in many home-related product categories, including appliances, consumer electronics and floor coverings. “In our opinion, the rapid growth in bedding specialty stores (threatens) to do the same with the mattress category. The same model that allows bedding to be the most profitable category in a furniture store allows it to be a very successful freestanding specialty store or addition in a warehouse club or department store with a high return on investment.”
The report cautions that without healthy, profitable bedding departments, more furniture stores could fail.
2. A Generation Shift
Expect a slow down of bedding spending by the baby boom generation. The report said the generation aged 44 to 62 is likely to slow their furniture and bedding purchases as most of their homes and vacation homes are adequately furnished.
Instead, Generation Y, the largest generation, will now become the key target for the bedding category.
The report points out that older members of the generation are starting to form households, but they’re buying smaller homes with smaller bedrooms that can’t accommodate a queen, let along a king, mattress. For bedding, that means a likely growth in full-sized mattresses over the next 10 years, according to the report. It also points out that this generation will be having children, pushing the need for twin bedding.
Factory Shipment Data
(billions of current $; % equals year-to-year change)
Net Bedding %
2011e $8.635 5.7%
2010e $8.168 2.1%
2009e $8.000 6.8%
2008e $7.489 2.5%
2007e $7.303 2.8%
2006 $7.105 6.4%
Updated as of Sept. 2007
Source: Mann, Armistead & Epperson, Ltd.
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