More Double-Digit Mattress Declines in July

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Piper Sandler retail survey says dollars down 11% in July while units dipped 19%

Retail mattress sales posted double-digit dollar and unit declines in July as retail conditions remain challenged, a retail survey says.

Piper Sandler’s July Mattress Retailer Survey, which presents the views of a sample of mattress retailers around the country, found only “minimal improvement” from the declines recorded in recent months. Units and dollars were both down by double digits in April, May and June.

The July survey reports total sales growth down by a mean of 11%, slightly better than June’s decline of a mean of 13%, with July units down by a mean of 19%. The average unit price increased by a mean of 11% in July.

The unit decline in July continues a long streak of negative results, Piper Sandler says. “Delivered units have now been negative year over year since July 2021, or 13 months in a row,” the firm says in its report on the July survey results.

The 11% growth in average unit price in July marks a steep decline from the mean increase of 19% seen in May of 2022, and is below the 12-month average. “We believe this AUP growth step-down reflects sales weakness across all price points, versus strength at the high-end (and weakness at the low-end) in prior months,” Piper Sandler says.

Total sales growth in the second quarter was down by a mean of 14%, and retailers expect more declines for the third quarter. Retailers responding to the July survey say they expect third quarter sales to be down by a mean of 7%.

Piper Sandler asked retailers in July if they have been experiencing any abnormal delays with mattress deliveries. A majority of retailers, 56%, said they are not experiencing any delays, while 33% said they are experiencing delays with one producer, and 11% said they are experiencing delays with another producer.

The firm also asked two questions about direct-to-consumer mattress brands.

Asked what DTC brands that retailers are currently carrying, Purple led at 75%, up from 45% in July of 2021. Nectar was the second-most carried DTC brand, with 63% of retailers reporting they currently carry that brand, up from 36% a year ago. Casper was next, with 25% of retailers reporting they currently carry that brand, up from 18% a year ago. Only 25% of the retailers said they are not carrying any DTC brands.

Another question asked retailers which DTC brands they would like to add over the next year. An overwhelming majority of the retailers, 75%, said they don’t plan on adding any new DTC brands in the next year. Thirteen percent of the retailers said they would like to add Purple in the next year, while another 13% said they would like to add an unlisted survey option — GhostBed.