June 19, 2013
Serta put together another stellar bedding performance in 2012, solidifying its position as the nation’s No. 1 bedding producer. Serta’s soaring 26.7% sales growth last year pushed its wholesale bedding shipments to $1.47 billion, $261 million ahead of No. 2 Sealy, which saw its shipments rise a more modest 7.4% last year to $1.21 billion.
Sealy-brand shipments rose 7.9% last year to $954 million. The company’s Stearns & Foster brand registered a 5.5% increase, to $250 million, according to Furniture/Today estimates. Simmons, Tempur-Pedic and Select Comfort all maintained their rankings as the Nos. 3, 4 and 5 producers on Furniture/Today’s list of the Top 15 U.S. Bedding Producers. Serta first edged out Sealy as the bedding industry’s top producer in 2011, finishing that year with just a $34 million lead over Sealy, which stood unchallenged as the industry’s top producer for decades until the ascent of Serta. Serta managed to follow up its 18.1% sales gain in 2011, one that was fueled by the success of its iComfort line of gel memory foam beds, with an even more impressive showing in 2012, when its iSeries line of gel memory foam and innerspring beds joined the iComfort line in setting a sizzling sales pace on retail floors.The double-digit gains recorded
by Serta put more distance between Serta and the rest of the bedding pack. No. 3 Simmons couldn’t match the growth rates of Serta or Sealy last year. Simmons registered a 5.8% increase in its wholesale bedding shipments,
which topped the billion dollar mark, at $1.05 billion. That is $419 million behind Serta, compared with a gap of $167 million the year before. Memory foam leader Tempur- Pedic held steady in the No. 4 position, but added just $2 million to its bedding shipments, which rose to $882 million. That is a gain of just 0.2%, far below the 30.2% growth rate Tempur-Pedic achieved in 2011. It reflects a more competitive bedding landscape that challenges Tempur-Pedic’s growth plans. But Tempur-Pedic has a new partner, Sealy, which it acquired earlier this year. The companies have merged into a new entity, Tempur Sealy International, but say that Sealy and Tempur- Pedic will continue to operate as independent brands. With Serta and Simmons both owned by Advent International (and operating as competing brands), two bedding entities now control the top four mattress brands. Airbed producer Select Comfort is far behind bedding’s Big Four, but has been on a strong growth pace. Select Comfort, which makes the Sleep Number line of adjustable airbeds, saw its wholesale bedding shipments jump 18.9% last year, to $358 million. A year earlier, Select Comfort registered wholesale bedding
growth of 14.9%, to $301 million. With another strong performance last year, Select Comfort was one of a handful of top producers to record two consecutive years of double digit growth. Bedding’s Top Five producers dominate the bedding landscape, accounting for 73% of total industry shipments, pegged at $6.83 billion by the International Sleep Products Assn.
Methodology For Ranking Top Bedding Producers:
Furniture Today uses public and private information to develop the wholesale shipment figures in its report of the Top 15 U.S. Bedding Producers. The newspaper begins the process by sending a survey to some two dozen bedding producers, asking them to supply audited or accountant-verified figures for their 2012 bedding shipments. Three leading bedding producers — Sealy, Tempur-Pedic and Select Comfort — were publicly held last year and supplied shipment figures to Furniture/Today. Sealy provided its total U.S. shipments figure, which was $1.21 billion. Furniture/ Today estimates that Sealy-brand bedding accounts for $954 million of that total and posted a 7.9% increase over the previous year, while Bassett Bedding-branded shipments were $8 million, unchanged from the previous year. F/T estimates that Stearns & Foster shipments grew 5.5% last year, to $250 million. Two other leading producers — Simmons and Serta, both owned by Advent International, a private equity firm — supplied accountant- verified reports of audited figures. Only one other producer on the Top 15 list — No. 14 E.S. Kluft & Co. — supplied accountant-verified figures. Together, those six companies represent 84% of the Top 15 and 74% of the industry. The remaining producers on the list — Corsicana, Comfort Solutions, Therapedic, Englander, Restonic, Kingsdown, Symbol, Spring Air and Southerland — are ranked on the basis of a Furniture/Today survey of bedding producers and suppliers. All bedding producers are told that if they can’t supply accountant-verified or audited figures, Furniture/Today will use its industry survey to estimate their shipments. The newspaper takes all of the estimates it receives and averages them to arrive at the shipment estimates for the producers that did not supply accountant-verified or audited figures. Those figures are labeled as estimates in the list of the Top 15 U.S. Bedding Producers. Executive Editor David Perry and Dana French, director of research, collected the figures presented in this report, developed the estimates, and did the market analysis. The figure for the size of the mattress industry — $6.83 billion — is from the International Sleep Products Assn.