Firm cites ‘continued softness,’ said July 4th weekend fizzled on retail floors
Mattress units and dollars saw double-digit declines in June as the industry experienced “another disappointing month.” July 4th sales were also down, as that holiday weekend fizzled on retail floors, a new retail survey says.
Piper Sandler’s June Mattress Retailer Survey found that total sales growth in June dropped by a mean of 13%, while units were down by a mean of 19%. The second quarter saw total sales down by a mean of 14%.
New York-based Piper Sandler, which surveys mattress retailers across the country each month, says the June results show “continued softness” in the industry, with more declines expected in the third quarter.
Retailers reported that their written sales for the July 4th weekend were down by a mean of 9%, a similar trend experienced by retailers during the Memorial Day weekend, Piper Sandler says.
“The three-day selling weekends are slightly better than the overall month, reflecting some seasonal improvement, but the selling periods are still disappointing given increased advertising and promotions during these periods,” the firm says in its June report.
Retailers are now estimating that their total sales growth in the third quarter will be down by a mean of 8%.
The June survey found that the average unit price for delivered mattresses, foundations and adjustable bases was up in June by a mean of 10%, a significant step-down from the figure for May (up by a mean of 19%) and for April (up by a mean of 16%), and well below the 12-month average of an increase of about 20%.
“We believe this average unit price growth step-down reflects sales weakness across all price points, versus strength at the high-end in prior months,” Piper Sandler says in its June report.
Piper Sandler also asked retailers about financing. It found that retailers said a mean of 33% of their dollar sales used financing, a figure that was in line with the percentages seen in the previous four quarters.
