Is it time to debunk the housing myth? | Sheila Long O’Mara

There is a common perception among executives in the mattress and home furnishings industry that the company’s strength rests in part on the strength of the housing market. The belief that home sales drive mattress sales has long been accepted in industry circles.

But perhaps, I dare say, that is not the case. At least some data and market insights suggest that this assumption is a big fat myth, and they indicate that other factors such as consumer confidence, innovative products and strategic advertising are real catalysts for mattress sales growth.

Data from TraQline, a market research group that studies durable goods, takes a look at the mattress segment. This research showed changes in consumer purchasing behavior: where people buy beds and why they buy new mattresses.

No wonder, according to TraQline, 65% of consumers purchased mattresses online and 47% of them purchased online. Although we have seen similar numbers in the past, this represents a 5% increase in online shopping compared to last year.

Here’s what I noticed. Only 23% of mattress buyers cited moving to a new home as a reason for purchasing. Read that again: 23% of mattress consumers said moving to a new home prompted them to purchase a new bed. In contrast, 40% said they needed to replace an old, broken mattress.

Could it be that consumers are becoming more practical in their purchasing decisions? Let’s be honest. You can transport a mattress from house to house. What you can’t fix is ​​a lumpy, uncomfortable, way too old, broken mattress.

A bed industry executive has the same thoughts about why consumers buy a mattress. In Tempur Sealy International’s third-quarter conference call with analysts to discuss the company’s financial results, CEO Scott Thompson said he does not view residential real estate as a primary driver of mattress sales.

Wait, what?

This is the opposite of the conversation I have with mattress and home furnishings executives – both retail and manufacturers – where they consistently say that once the real estate market turns, mattress sales will change too. Lower interest rates, sell a few houses, they say, and we’ll sell mattresses.

Thompson said Tempur Sealy relies on advertising, innovation and consumer trust as key drivers of sales.

While housing starts may only have a peripheral impact, TraQline points to broader economic indicators, including consumer confidence and discretionary purchasing power, to boost mattress sales. TraQline data shows that higher-income households (those making $125,000 or more per year) contributed disproportionately to mattress sales, accounting for 31% of the dollars spent.

Maybe it’s time to rethink the narrative that not all home sales are the same as mattress sales.

The mattress industry’s growth drivers go beyond its association with housing trends. The narrative that housing starts have a direct impact on mattress sales often seems trite, especially when consumers say a new home is not their primary reason for buying.

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