The Business Model of Mattress Firm
Mattress Firm stays in business by offering a wide selection of mattress brands and models, focusing on customer experience and adopting a strategic approach to retail locations. They serve as a one-stop-shop for customers looking to find their ideal mattress, and their ubiquitous presence, both in physical stores and online, adds to their accessibility and convenience.
Expansive Retail Network
Mattress Firm has maintained a significant physical retail presence. Despite consumer trends leaning towards online shopping, for many people, feeling a mattress before purchasing it is paramount. The tactile experience cannot currently be replicated online, and therefore a network of convenient locations aids Mattress Firm’s success. By ensuring that stores are strategically located, often in areas with high foot traffic or near major shopping centers, they increase their visibility and accessibility.
Diverse Product Range
Offering a wide variety of mattresses and sleep products is another key aspect of Mattress Firm’s business strategy. By providing options that range in type, brand, comfort level, and price, they appeal to a broad customer base. From memory foam to traditional innerspring mattresses, and from budget-friendly options to luxury models, there is something for everyone. Additionally, they carry sleep accessories, including adjustable bases, pillows, and bedding, which can complement a mattress purchase and generate additional sales.
Customer-Centric Services
To enhance the customer experience, Mattress Firm offers several services that aim to ease the complexity of choosing and purchasing a mattress. These include sleep trials, where customers can return or exchange a mattress within a certain period if it does not meet their comfort preferences. Financing options, free delivery, and old mattress removal also add value to their offerings, removing barriers for the customer.
Marketing and Advertising
Reaching customers through effective marketing campaigns is a staple of Mattress Firm’s business strategy. They employ a mix of traditional and digital marketing techniques to build brand recognition and drive sales. By investing in online marketing, localized advertising, and promotions, they stay top-of-mind for consumers who are in the market for a new mattress.
Online Sales and Omnichannel Strategy
In recent years, Mattress Firm has expanded their e-commerce operations, recognizing the growth of online mattress sales. Their website offers the same wide selection as their stores, along with detailed product information and customer reviews. Adopting an omnichannel strategy allows them to serve customers who prefer the convenience of shopping online while still leveraging their strong physical store network.
Adapting to Market Changes
Mattress Firm has shown adaptability in responding to market shifts, such as the rise of bed-in-a-box companies and changing consumer preferences. They’ve partnered with popular bed-in-a-box brands and incorporated these products into their stores and online offerings. This allows them to offer a modern shopping experience and meet the needs of a customer base looking for convenience and fast delivery.
Operational Efficiencies
Efficient operations are critical to Mattress Firm’s success. They’ve honed their inventory management, distribution, and supply chain processes to ensure that popular products are in stock and can be delivered promptly. Streamlining these operations helps reduce costs and improves the overall customer experience.
Focus on Health and Wellness
With health and wellness becoming increasingly important to consumers, Mattress Firm has positioned their products as not just sleep solutions, but as essential components of a healthy lifestyle. Educating customers on the benefits of quality sleep and how different mattresses can improve sleep health is a part of their in-store service and marketing efforts.
Acquisitions and Competitive Strategy
Mattress Firm has also grown its footprint by acquiring other mattress retailers and consolidating the market. This has allowed them to eliminate competition in certain areas and gain greater market share. Additionally, they frequently offer price-match guarantees, combating price competition and reinforcing their commitment to providing value to their customers.
Challenges and Controversies
Despite these strategies, Mattress Firm has faced challenges, including an oversaturated market and accusations of real estate overexpansion that led to filing for Chapter 11 bankruptcy protection in 2018. However, they emerged from bankruptcy by closing underperforming stores and focusing on maintaining profitable locations.
Finishing Thoughts
Mattress Firm remains a prominent player in the mattress retail industry by continuing to evolve and refine its business strategies. From its diverse product offerings and customer-centric services to its strategic retail placement and effective omni-channel presence, the company has demonstrated resilience and adaptability in a competitive market. Mattress Firm stays in business by tuning into customers’ needs, adapting to industry shifts, and continually finding new ways to deliver value and convenience to those looking to invest in better sleep.
