Retail Observer

RETAILOBSERVER.COM SEPTEMBER 2018 50 O ver the past few months I've met with multiple mattress retailers across the country, and I've heard two consistent themes: traffic and sales are down. A major investment firm that tracks many retailers across the U.S. says, "Brick-and-mortar retail mattress sales declined to low single digits in Q2, with sales growth seen early in the quarter giving way to further declines in May and June. Feedback for the 4th of July sales period indicates an even softer start to 3Q, with trends down by low single digits to mid-single digits despite an increase in promotional activity." Most retailers blame the soft business climate on the disruption caused by online boxed bed retailers and the growth of import mattresses predominantly from China. Our government is doing what it can to level the playing field for U.S. manufacturers by implementing tariffs. This will help over the short term, but that remedy will be short-lived as importers look to move their manufacturing to other low-cost countries and regain a cost advantage. How can independent brick-and-mortar businesses continue to compete with all this chaos? On a trip to New York last month, I strolled down Broadway with my wife, and noticed a leading online mattress retailer had opened a store. As a mattress geek, I felt compelled to visit the store to see what they had going on. The store, while simplistic in décor, was very inviting. I noticed the sales staff wearing lab coats, possibly to indicate they were "sleep specialists". The store only had two options of mattresses, but those choices were represented multiple times within the large store. Furthermore, the sleep options were displayed within small enclosed "cottages" with curtains to allow shoppers to try them in privacy. A second location for this leading online retailer offers a "nap showroom" that offers consumers the option to enjoy 45 minutes of rest on their mattresses, decked out with their branded line of sheets and pillows. This online retailer recently also launched a department within select Nordstrom stores that features mattress options, pillows, and sheets. The reason I mention all of this is because it indicates that a leading online retailer also understands the importance of brick- and-mortar retailing and goes the extra mile to create a compelling in-store experience to separate itself from the competition. To compete in today's new retail environment, mattress retailers need to find tools to separate themselves. Here are a few that I've witnessed in my recent visits to retailers: • Sleep Pressure Mapping technology is a feature that can't be sold online. A retailer recently added the Reveal by XSensor sleep diagnostic system to its store and boasts amazing results. XSensor is a leader in the technology, with proven results among retailers who fully implement the technology to increase closing rates and average ticket sales, and reduce returns. • Another great tool from a leading top-of-bed supplier is Sleep Tailor. Shoppers can engage with an RSA-guided kiosk that analyzes head and neck size. After answering a few brief questions, the technology determines the perfect pillow choice for the consumer. The concept is being tested with select Protect-A-Bed retailers in the U.S. with positive results. • Lastly, I've had the opportunity to experience an in-store pillow design kiosk. The kiosk allows the consumer to choose a pillow fill material and the quantity of the material to achieve the optimal fit for a perfect sleep experience. Furthermore, the pillow can be "re-fitted" as the consumer's sleep habits and body change. What a great tool to get consumers to return to your store and expose them to new products, giving your RSAs another chance to make a sale! To sum it all up, mattress retailers need to look for ways to differentiate themselves from the competition — including the development of an online sales strategy. Consumers' needs are constantly evolving, and as independent brick-and-mortar retailers we need to continu- ally find new ways to deliver a compelling experience to our customers and bring them back into our stores. Mike Allen Furniture Trends LET'S TAKE BACK OUR MATTRESS CUSTOMERS E. Michael Allen is VP of furniture and bedding, BrandSource. RO

• Cover