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The Upside of the Tempur/Sealy-Mattress Firm Reunion

Mark Kinsley and I had an in-depth conversation about the Tempur-Pedic and Mattress Firm reconciliation so if you have not given that a listen, check it out here.

After giving it some more thought, there are a few things I thought I would go a little deeper on. If you really think about it, there are a lot of positives that will come out of this renewed partnership.

  • Jobs. Tempur-Sealy is saying that they are about to hire an additional 700 people which we know can’t be completely tied back to this announcement but I’m guessing the majority of these jobs can be. Giving people an opportunity for a career is always a good thing so this is a huge win for them.
  • This union could make the Mattress Firm a more successful company possibly creating more jobs, giving them access to one of the strongest brands in the category, ultimately driving top and bottom line results.
  • Even though retailers out there will have to compete with Mattress Firm for Tempurpedic, Sealy, and Stearns and Foster sales, the additional advertising in the market will definitely serve everyone well, bringing more attention to the category. Most of the retailers I talk to are confident that their sales force and store services can compete well with Mattress Firm so if that’s true, then the additional advertising should be a win for everyone.
  •  In a weird way, it’s a good thing for Serta/Simmons Bedding as well. This will force SSB to get more aggressive with their product offerings adding more value to what they are doing for the retailer. Get ready guys because your phone is about to start ringing if it hasn’t already. From what I’m being told by SSB insiders, their CEO Dave Swift is hard at work on a strategy that is going to drive them forward.

I guess the downside could be that when two big companies make massive changes like this there is a serious ripple effect for the rest of the industry. Suppliers will have to reconcile inventories, some job titles will be changing, and there is some uncertainty around the supply chain given the new demand Tempur/Sealy will be facing. The bottom line here is that if you continue adding value in what you offer and how you do your job, there will be opportunities. At least that’s what the free market tells us right? What’s the impact going to be on your business if any? Share your thoughts in the comments section!

 

One thought on “The Upside of the Tempur/Sealy-Mattress Firm Reunion

  1. It looks like a race between two athletes, one of which (TS) is starting with an advantage. How much its competitor (SSB) is willing to sacrifice to increase its speed? And how many other competitors will end their fuel before the end of the race? I think these questions are not easy to answer because of the race’s ground: our market is not something where you simply take a run. It is something alive, susceptible, evolving following the consumer. Because of this, the door is always open to new entry that will be able to understand it better than others.

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