Bed & Mattress Stores in the US Industry Market Research Report Now Available from IBISWorld

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When the residential real estate market dipped due to the subprime mortgage crisis, consumers bought fewer homes and, therefore, fewer beds and mattresses over the past five years. Due to the tough times, most stores thinned their workforce and lowered wages to remain in business. But, as disposable income and new household formation rebound, so too will Bed and Mattress Stores revenue. Pent-up demand, as well as enticing new technology, will lift revenue in the five years to 2017. For these reasons, industry research firm IBISWorld has added a report on the Bed & Mattress Stores industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

As disposable incomes fell, consumers bought cheaper mattresses or no mattresses at all

Consumers hit the snooze button on sleep equipment purchases due to low disposable income and slow household formation during the past five years. When the residential real estate market dipped due to the subprime mortgage crisis, consumers bought fewer homes and, therefore, fewer beds and mattresses. A dip in disposable income, in response to high unemployment and economic uncertainty during the ensuing recession, resulted in lower consumer spending because people chose cheaper beds and mattresses, or decided to delay their purchases altogether, says IBISWorld industry analyst Justin Waterman. Consequently, Bed & Mattress Stores industry revenue is estimated to fall 1.7% annually on average to $10.1 billion in 2012. Sliding revenue was partly balanced out by purchases induced by a bed bug epidemic starting in 2010, which stimulated new mattress and mattress cover sales. Also, slowly rebounding disposable income and new household formation are expected to result in 0.2% revenue growth in 2012.

In response to more price-sensitive consumers, companies in the industry offered more promotions and intensified marketing, Waterman says. This resulted in lower industry profit. Some operators shuttered their doors or consolidated to prevent losses. IBISWorld estimates that the number of industry firms will decline at a 0.6% annualized pace to 6,338 during the five years to 2012. To remain in business, most stores thinned their workforce and lowered wages. Industry employment is expected to decline by 2.5% annually on average to 43,625 people during the five years to 2012, and the average wage is expected to fall at an annualized rate of 1.7% to $30,251 during this time.

The Bed and Mattress Stores industry is forecast to benefit from rebounding disposable income and new household formation, as well as innovation in the upstream Mattress Manufacturing industries (IBISWorld reports 33791 and OD5330). For example, new models feature built-in sleep timers and alarms that adjust the bed or use built-in massager technology to gently wake the user. Such new technologies are helping manufacturers up-sell to customers that traditionally opted for cheaper models. Furthermore, consumers that delayed purchases are expected to finally buy a mattress during the next five years as disposable income recovers. As a result, industry revenue is forecast to rise in the five years to 2017. The industry is characterized by having a low level of concentration, with the top four players accounting for less than a third of industry revenue. This leaves more than 6,000 firms to account for the remaining revenue, making this a highly fragmented industry. For more information, visit IBISWorld’s Bed & Mattress Stores in the US industry report page.

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IBISWorld industry Report Key Topics

This industry sells sleep equipment, including mattresses, box springs, cots, bedding, pillows and waterbeds. The industry excludes wholesale furniture distributors such as department stores or direct non-store retailers, as well as sales of other bedroom furniture. Revenue from sales of sleep sofas, daybeds, futons and other dual-purpose furniture is not included in industry revenue.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
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Major Markets
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Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
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Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
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About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-3772.

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