Posts Tagged ‘american made furniture’

Mattress sales rise 6.2% in October, Industry notches first monthly gain this year

Monday, December 14th, 2009

The mattress industry got a double-barreled dose of good news in October, with bedding units posting a 3.5% gain and dollars increasing by 6.2% from the same month last year. It was the first time this year that the dollar value of bedding shipments broke into positive territory.

Despite the October uptick, unit sales are down 12% for the year to date, while the dollar value of shipments is down 12.9%, according to the International Sleep Products Assn.

The trade association reported the results in its October Bedding Barometer. They reflect the business done by 18 mattress producers that account for about 46% of the industry’s unit sales and about 56% of the wholesale value of the market, ISPA said.

Bedding executives cheered the positive results in October as an indication that the industry is finally shaking off the effects of the recession.

Mattress units were up 5.9% in October, ISPA said, with foundations posting a 1% gain. The dollar value of mattress shipments was up by 6.7%, while the dollar value of foundations was up by 4.3%, according to ISPA.

The average unit selling price of mattresses increased by 0.8% in October, while the average unit selling price for foundations was up 3.3%. Overall, the average unit selling price in October was up by 2.6%, ISPA said. That was the first monthly increase since July, and it marked only the third time this year that the average unit selling price has been in positive territory.

ISPA also released a second set of industry figures for October and for the year. But those figures include “certain anomalies” that distort year-to-year comparisons, ISPA said. Furniture/Today has elected not to report those figures because they are not as representative of industry performance as the figures that remove the “anomalous cases.” All figures in this story are those that provide apples-to-apples comparisons with the previous year’s results.


Simmons sighs in relief as deal announced

Thursday, December 3rd, 2009

So now we know that those Serta-Simmons rumors were true, sort of.

The purchase agreement announced today between Simmons and an investor group led by Ares Management and the Ontario Teachers’ Pension Plan, the owners of Serta, would dramatically change the face of the bedding landscape, sort of.

It will create a new No. 1 in the mattress world: Simmons plus Serta is almost $2 billion in sales, compared to $1.2 billion for Sealy, the way things stood at the end of last year.

But I’m sure you didn’t miss the point that Serta’s owners made about intending to operate Simmons and Serta as separate and distinct entities. There is more than a little skepticism about that claim in industry circles. Time, of course, will tell.

It’s also worth noting that the deal has not closed, and that the Federal Trade Commission’s review of the implications of the proposed transaction continues. Some believe the FTC will squash the deal. Again, time will tell.

For now, Simmons has to be pleased that it is finally moving toward the conclusion of a process that has dragged on for month after agonizing month. Uncertainty in business is usually not a good thing. Simmons took a big step forward in announcing the purchase agreement.