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Reasons Behind Edgewater’s Mattress Store Boom


Photo: Sleepy’s FB Page

It seems as though every time we post a story about a vacant retail space or that a business is closing in Edgewater, the inevitable social media jest is posted, “Oh please, not another mattress store.”

But the online quip is all too real. We have seen many mattress stores open around Edgewater recently, some just feet from a competitor. Each display bold signage trying to attract their next customer. So how do these guys survive, anyway? An article by Straightdope.com did some amazing sleuthing and gave key insights as to why this is happening:

1. Though we are led to believe that everyone is buying online these days, actually 90 percent of overall transactions still take place within brick and mortar stores, according to a 2014 report by the consulting firm A.T. Kearney. In addition, retail stores that sell only mattresses account for 46 percent of the mattress market. Compare that to 35 percent by furniture stores and only 5 percent by retail stores.

2. It is cost effective to run a mattress store. Inventory almost always comes from a warehouse, so they do not need to stock the goods. Because it is solely a showroom and most of the salespeople are on commission, overhead is relatively low.

3. According to the trade journal Sleep Retailer, the industry is doing very well due to “post-recession catch-up.” From 2008 to 2009, mattress sales slumped. Since then, the economy has rebounded and the housing market has picked up nicely. Sleep Retailer says the mattress industry is expected to reach $25 billion globally by 2017.

4. The mark-ups on mattresses are huge. A $3,000 mattress can cost only $300 to produce. Consumer Reports put gross profit margins at 30 percent to 40 percent for both wholesalers and retailers. Luxury mattresses can be as high as 50 percent. The main reason for this is that there are not many mattress producers.

Add to all of this that media, from lifestyle magazines to TV ads, continually bombard the public with ways to get the perfect night’s sleep. But Straightdope.com also points out that critics have been very vocal of an alleged oligopic system where retailers charge high, widely variable prices for products that have only slight differences from one to the other.

The real question is whether the mattress store boom is just a momentary trend, or whether we will see more retail stores dominate the streetscape in Edgewater. One thing seems clear right now: Mattress stores are riding the perfect wave of profitability right now.


Sources: straightdope.comEdgewater Chamber of Commerce



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