Canada requires reporting of worldwide safety incidents
Mattress manufacturers that sell products in Canada should pay particular attention to a reporting provision of the recently enacted Canada Consumer Product Safety Act, according to the International Sleep Products Association.
The law reforms product safety procedures in Canada. It contains mandatory incident reporting and recordkeeping requirements, authorizes stiffer penalties and gives the government stronger powers to recall products.
One provision that ISPA says warrants particular attention from the mattress industry is the mandatory incident reporting obligations, which require retailers, manufacturers and importers to report product safety incidents that occur anywhere in the world to Health Canada within two days of a company “becoming aware” of an incident, if that product is sold in Canada.
Manufacturers or importers must follow up with a report within 10 days, confirming details of the incident and outlining intended corrective action. The requirements take effect June 20.
Health Canada is formulating policies and guidance regarding provisions of the new law. ISPA says critical questions for the mattress industry to have clarified include:
- At what point does a company “become aware” of a safety incident?
- Do the worldwide reporting obligations extend to those with a licensing or contractual relationship with the product?
- When is a product sold outside Canada no longer the same product sold in Canada?
- Do incidents reported to the U.S. Consumer Product Safety Commission automatically trigger a company’s obligations to report to Health Canada, even if the regulatory standard for the product differs in Canada and the United States?
- What exactly is a reportable incident?
ISPA recommends that its members who make or sell mattresses in Canada—or that are related to companies that make or sell mattresses in Canada—consult with qualified legal professionals in Canada to determine whether the new law imposes additional legal requirements on their companies.
Sealy sales drop 2% in 1st quarter
Mattress major Sealy, with headquarters in Trinity, N.C., said its net sales declined 2% to $305.5 million in the first quarter of fiscal 2011, compared to the same period in 2010.
Gross profit decreased by $14.4 million to $118.5 million from the prior–year quarter. Gross margin decreased by 382 basis points to 38.8%. U.S. gross profit margin decreased 432 basis points to 37.9%.
Sealy attributed the decrease in gross margin largely to costs related to the launch of the company’s redesigned Posturepedic line, which began shipping during the first quarter.
Increased raw material costs and other inflation also cut into gross margins, as did an increase in sales of its Sealy–branded promotional line of products, the company said.
Income from operations for the fiscal first quarter decreased by $17 million to $19.7 million. The decrease was driven primarily by the decline in gross profit.
Net income from continuing operations for the period was $0.1 million or $0.00 per diluted share, compared to $8.3 million or $0.04 per diluted share in the prior–year quarter.
“Our first–quarter results were consistent with the expectations and objectives that we established,” said Larry Rogers, Sealy president and chief executive officer. “The first quarter results reflected the financial impact of the significant strategic investments in our product portfolio, as we launched the Next Generation Posturepedic line in late January 2011. This launch represents a refresh of approximately 50% of Sealy’s entire product portfolio. Retailer and consumer feedback on the product rollout, the new advertising campaign and the messaging has been overwhelmingly positive. We remain confident in our ability to execute our plan and expect the strategic investments made in the first half of 2011 to drive improved financial performance.”
Total U.S. net sales decreased 3.1% to $238.7 million from the first quarter of fiscal 2010. Wholesale unit volume decreased 1.3%, while wholesale average unit selling price decreased 1.9% on a year–over–year basis.
Sealy attributed the decreases in unit volume and AUSP to slower sales and heavier discounting on Posturepedic products at the end of their life cycle in advance of the introduction of the new Posturepedic line. In addition, the growth of Sealy–branded promotional products contributed to the lower AUSP, as the value–priced products made up a larger portion of total sales.
International net sales increased $1.3 million, or 1.9%, to $66.8 million when compared to the first quarter of fiscal 2010. Excluding the effects of currency fluctuation, international net sales decreased 2% from the first quarter of fiscal 2010. Sealy said the decrease was primarily due to lower sales volumes in Canada, partially offset by strong growth in South America.
Southerland to offer Sharper Image beds
Southerland Inc., a mattress producer with headquarters in Nashville, Tenn., has signed an exclusive licensing agreement with the Sharper Image branding company to produce a new line of mattresses, the Sharper Image Personal Choice Sleep System.
“The Sharper Image brand stands for innovation, quality and styling, which is why it is such a good fit for our company,” said Southerland President David Corbin.
The customizable memory foam beds have a patent–pending design that has been in development since 2009, Corbin said. It is a different construction than that of the Sharper Image bed previously marketed by Cambridge, Ontario–based Natura World, he said.
According to Southerland, the new sleep system has been “thoroughly vetted” in multiphase consumer research and the concept received a high “intent–to–purchase score” in a study of more 1,000 consumers. It also received high ratings from participants during in–home trials. Beds will begin shipping to retailers in the United States and Canada during the third quarter.
Comfort Solutions returns to High Point
Mattress licensing group Comfort Solutions made its first appearance at the High Point Market in more than 10 years, setting up shop for the April show in a 5,500–square–foot space in the International Home Furnishings Center in High Point, N.C.
“Our success in Las Vegas brought us back to High Point,” said Owen Shoemaker, senior vice president of product development and marketing for the Willowbrook, Ill.–based company. “We wanted to continue our momentum and catch any retailers that we may be missing in Las Vegas.”
Visitors to the new showroom could check out the company’s redesigned Laura Ashley collection with new top–of–bed accessories in three vivid colorways.
The company also emphasized its Sleep ID line and the BodyMatch technology that supports it. Sleep ID’s high–end Delta Z series has a redesigned zippered top that allows consumers to change the bed’s specialty foam comfort layers. The zip top helps prevent product returns, allows for customization of each side of the bed and creates an opportunity for after–market comfort–layer replacement sales, Shoemaker said.
Sleep ID software has been upgraded with new visuals and evaluation tools related to individual body alignment that make it even more valuable as a tool in the mattress–fitting process, Shoemaker said.
Boyteks plans for second decade of growth
Mustafa Yildirim, general manager of mattress ticking and upholstery supplier Boyteks with headquarters in Kayseri, Turkey, said continuous investment—in research and development, staff training, equipment and new technology—is the secret to his company’s successful first decade and will be the foundation of growth in the next 10 years. The company was founded in 2000.
In 2009 alone, Boyteks increased its woven mattress fabric production by 25%, knit mattress fabric by 15% and upholstery fabric by 10%. In 2010, knit mattress fabric production was boosted by another 50%, Yildirim said.
Despite the global economic crisis, the company has continued to expand distribution and now has customers across the globe, he said. Plans are under way to open sales offices in additional international markets. Boyteks also is considering establishing overseas manufacturing facilities.
The company’s goal is to create fabrics that help “provide impeccable sleep quality the world over,” Yildirim said. Boyteks has a “universal collection, as well as region–specific collections” that are adapted to local tastes.
This month, Boyteks is putting the focus on its “nature–inspired” products and new technologies at two trade shows, Evteks held May 18–22 in Istanbul and Interzum Cologne held May 25–28 in Cologne, Germany.
Comfortaire unveils new ‘total store concept’
In April, airbed maker Comfortaire, a division of Park Place with headquarters in Greenville, S.C., cut the ribbon on a new High Point Market showroom at the International Home Furnishings Center in High Point, N.C.
The company, which introduced the airbed concept in 1981, offers a core group of seven airbed models.
“This is a business that is driven by technology and ours is head and shoulders above the rest,” said Jimmy Orders, Park Place president. “This ‘total store concept’ is just the next step in Comfortaire’s evolution.”
The showroom was filled with new display options for retailers. Glass partitions, textural room dividers and wall graphics were interspersed with flat–panel screens playing video loops—all designed to create a sense of relaxation and of privacy. Graphics employed large–scale lifestyle imagery and messaging—“The Mattress as Individual as You”—that underscores the brand’s customization and personalization promise.
The total store concept is flexible and “rearrangeable,” said Comfortaire President David Karr.
Retailers could start with as few as two beds and point–of–purchase materials for about $2,000 or have a more elaborate setup with multiple beds and the larger store fixtures.
Facebook fans sweet on Carpenter Valentine’s Day contest
For Valentine’s Day, Richmond, Va.–based industry supplier Carpenter Co. sponsored the “SleepBetter Love Nest Makeover” survey and contest on its SleepBetter.org Facebook page.
The campaign generated more than 3,200 entries and 5,000 “likes” in just three weeks. The randomly selected contest winner, Jennifer Barnett of Nashville, Tenn., won new pillows and a mattress topper.
“We reach out to Americans wherever they are to get them thinking about prioritizing healthy sleep, including improving their sleep environment,” said Dan Schecter, Carpenter vice president of consumer products and creator of SleepBetter.org. “A large amount of discussion about health and sleep is happening on Facebook and
SleepBetter.org is right in the middle of that conversation. Valentine’s Day always provides a fun starting point to discuss romance and sleep, so we conducted a holiday–themed contest and survey that generated some buzz.”
Carpenter is following up its Valentine’s Day effort with a product sampling and review program for its Beyond Down pillows at the “Modern Mom with Brooke Burke” website. Comments from the site’s readers, which number close to 2 million, can be found at
www.modernmom.com/tested/sleep–better.
Boyd introduces luxury–look Planet Sleep
Mattress producer Boyd Specialty Sleep, with headquarters in St. Louis, has introduced the three–model Planet Sleep memory foam collection.
According to the company, Planet Sleep offers a high–end look, excellent comfort, standout point–of–purchase materials, eco–friendly features and the opportunity for high profit margins.
The beds have suggested retail prices from $1,299 to $1,999 for a queen–size set.
The beds feature Boyd’s patent–pending Stay–Cool memory foam, with channel venting and zoning for enhanced lumbar support. The support base is Boyd’s patent–pending FoamSpring polyurethane foam, also with channel venting and zoning. Covers are made with bamboo rayon yarns.
The POP program includes matching headboards and foot protectors, coordinated pillows and a minimattress display that helps retail sales associates explain product features and benefits.
“We believe this specialty line delivers the ‘complete package’ to retailers who want luxury memory foam products that are demonstrably different,” said Dennis Boyd, Boyd Specialty Sleep president. “These beds incorporate from 4 to 7 inches of our exclusive open–cell memory foam layers, feature densities of up to 7 pounds and total mattress profiles of up to 13 inches.”
Sealy hosts ‘Pillow Talk’ series
Building on its “Whatever You Do in Bed, Sealy Supports It” marketing campaign, the mattress major hosted “Pillow Talk” educational seminars for retailers during the April High Point Market.
Logan Levkoff, a relationship expert, sexuality educator and author, offered advice and shared insights from recent Sealy research on how to approach intimate subject matter during the mattress sale.
Levkoff said that one question many consumers may want answered, but are afraid to ask is—“Is it better on springs?”
Yes, it is, according to Sealy research: 68% of men and women rate an innerspring mattress as the best sleep surface for sex.
The seminars provided pointers on how male sales associates ought to approach delicate subject matter with female shoppers, including using “softer” words (such as “intimacy,” “connection” and “relationships” rather than “sex”) when talking to women, paying attention to consumers’ body language to determine how the conversation should proceed and giving the customer the freedom to consider her purchase privately.
The seminars were held at Sealy’s showroom in Trinity, N.C., just outside High Point.
Wright rolls out design collaboration tool
Wright of Thomasville, a provider of graphic products and services, has launched Design Wright Now, a Web–based design collaboration tool that enables company designers to work with customers online, in real time.
The tool speeds up the design process by as much as 50% and may provide a cost savings to customers, according to the company. Comfort Solutions, International Bedding and Kingsdown all have worked with Wright of Thomasville using the new online tool.
“In the old days, you sent an email with a design as an attachment, which the client might have trouble opening or take a day or two to review,” said Greg Wright, Wright of Thomasville president and chief executive officer. “Customers would then communicate their revisions and the project would go back into the design department. Three weeks could pass with no firm decisions being made. Design Wright Now allows us to set a meeting, log on and begin working collaboratively with our clients. The ability to immediately review revisions and get commitment from the marketing team dramatically reduces turnaround on a project.”
SHORTS
U.S. bedding sales dip
Sales of beds fell in February in the United States, but the value of those mattresses and the average unit selling price both were up significantly, according to the Bedding Barometer, a monthly sales report from the International Sleep Products Association. Unit sales (mattresses and foundations) dropped 3% in February 2011 when compared to the same month a year earlier. The wholesale dollar value of those units rose 4.9% and the AUSP jumped 8.1%.
Hickory embraces ‘big box’
Hickory at Home, the consumer products division of Hickory Springs Mfg. Co., is offering
“a ‘big box’ alternative to the big box stores,” said Niles Cornelius, general manager of the Hickory, N.C.–based company. Prepackaged boxed sets of pillows, sheets, goose–down comforters or other items from the company’s Final Touch line can be shipped directly from Hickory’s warehouse to vendors or to consumers’ homes. “No new bed sale is complete without new sleep accessories and the ‘big box’ concept makes it easier for retailers and for consumers to complete this necessary purchase,” Cornelius said. Hickory at Home introduced the concept at the April High Point Market in High Point, N.C.
CKI spray addresses bedbug jitters
Fort Lauderdale, Fla.–based Cadence Keen Innovations (dba CKI Solutions), a supplier of mattress and sleep–related accessories to retailers and the hospitality sector, introduced Stop Bugging Me at the April High Point Market in High Point, N.C. The bedbug–killing spray is available in countertop displays containing full– and travel–size bottles. The company said the product is a lab–tested insecticide that is safe for use around children and pets. It’s meant to be applied to mattresses, bedding, carpets, upholstered furniture, clothing and luggage. The product literature states it will kill 100% of bedbugs and their eggs within 15 minutes.
Shifman: Cézanne is ‘work of art’
Luxury producer Shifman Mattresses unveiled the Cézanne, the top model in its top–of–the–line, nine–bed Masters collection, at the April High Point Market in High Point, N.C. The innerspring bed is truly “a work of art” and is “designed with 95% natural materials,” including layers of pashmina cashmere, cotton and latex, the Newark, N.J.–based company said. The two–sided, handmade mattress sits atop an eight–way, hand–tied box spring with solid–brass corner guards. Both are covered in damask. The Cézanne has a suggested retail price of $7,399 for a queen set.
Carolina brand marks anniversary
In celebration of its 20th anniversary, regional mattress maker Carolina Mattress Guild in Thomasville, N.C., is offering its Platinum Edition collection. The three–bed group is available in 2011 only. It debuted during the April High Point Market in High Point, N.C. Each bed has encased coils, layers of latex and memory foam, silk and wool fiber fill. The ticking is a creamy white knit with contrasting Wedgwood blue, microdenier fabric in the gusset and foundation border. “Color is back—in furniture, in upholstery,” said Kathy Grigg, Carolina Mattress Guild owner and vice president. “People want to see color in their lives and everyone who comes in has been drawn to this bed.”
Classic opens new showroom
Classic Brands cut the ribbon on a new showroom in the International Home Furnishings Center during the April High Point Market in High Point, N.C. The Jessup, Md.–based company said the 3,600–square–foot space better accommodates its multiple product lines with a more fluid, open layout. The company also has relaunched its website, www.classicmattress.com, with a new color scheme and easier navigation. The site has an expanded “Sleep Library” containing facts about sleep and health, as well as detailed product information. It links to the company’s Facebook, Twitter and YouTube accounts, in addition to a new sleep tips blog.
Red, red roses bloom at IB
Everything was coming up roses at International Bedding’s showroom during the April High Point Market in High Point, N.C. The Fort Lauderdale, Fla.–based mattress producer embraced the red rose—Airsprung’s iconic motif—in a dramatic new branding program for its licensed line of Airsprung beds. The artwork, which was developed by the 130–year–old U.K. brand based in Trowbridge, England, was adapted by IB for the American market, said Mark Wozniak, IB vice president of marketing. Top–of–bed items in silver–gray suede contrasted with vibrant rose photographic insets. Coordinating point–of–sale materials included banners and posters with close–up lifestyle photography of women in repose blanketed with rose petals. IB’s Airsprung slogan is “Beautiful Beds at Comfortable Prices.”
Jamison adds to TLC
Mattress producer Jamison Bedding, with headquarters in Brentwood, Tenn., has added four models to its TLC collection of specialty beds featuring Talalay latex. They debuted at the April High Point Market in High Point, N.C. The additional beds are constructed around the company’s proprietary high–resilience foam “Marriott core” and are topped with varying amounts of latex. They are available in dual–comfort versions to meet sleep partners’ differing needs. The smooth, seamless cover is a stretch knit that zippers on the underside of the bed.
Crystal sparkles at Zedbed
Foam bed maker Zedbed, which is based in Grand–Mere, Quebec, introduced the Crystal collection during the April High Point Market in High Point, N.C. The three mattress models feature layers of latex and memory foam over a pressure–relieving core. The beds provide sparkle and glitz with molten silver–colored stretch–knit covers in an ornate pattern, a waterfall edge and light gray suede borders. Suggested retail prices for queen sets range from $1,899 to $2,899.
New spot
For the April High Point Market, foam bed producer Anatomic Global doubled its showroom size in the International Home Furnishings Center in High Point, N.C., to about 2,800 feet. The additional space allows the company to ‘put the focus on all three of its product areas,’ said David Farley, chief executive officer of the company, which has headquarters in Corona, Calif.
