The Roseville store is the 25th to open this year, bringing the total number of Tempur-Pedic flagship stores across the United States to 38. Two more stores are slated to open before the end of the year. The next location will be Albuquerque, New Mexico.
In addition, by the end of 2019, the Lexington, Kentucky-based mattress major plans to have a total of 60 to 80 company-owned stores. As a part of this process, the company is in negotiation with landlords of some locations previously occupied by Mattress Firm, according to a news release. Mattress Firm filed for bankruptcy protection Oct. 5. It immediately closed 200 stores and planned to close as many as 700.
“The expansion of our company-owned Tempur-Pedic retail stores supports our long-term objective to ensure that our products are properly represented in all channels in order to support how, and where, the consumer wishes to experience and purchase our products,” said Scott Thompson, chair, president and chief executive officer of Tempur Sealy. “Our Tempur-Pedic flagship locations have complemented our existing distribution channels by increasing brand awareness in local markets, with highly trained brand ambassadors that provide consumers a best-in-class educational experience in a very low-pressure sales environment.”
During the company’s second-quarter earnings call, Thompson told investors that third-party retail distribution is Tempur Sealy’s preferred channel, but that the termination of its Mattress Firm contracts in January 2017 left gaps in its retail network. The average mattress sale in its Tempur-Pedic stores runs at about $3,000, with a 75% attachment rate on adjustable foundations, he said.
“We need to be where our customers want to shop,” Thompson said. “And while we do not expect our retails stores to be material to sales or EBITDA (earnings before interest, taxes, depreciation and amortization) in 2018, we estimate the contribution profit of one our stores is equivalent to 20 Mattress Firm stores.”