Every market feels the pressure of today’s economic state. Mattress retailers are no different. Winning your market share requires you to understand the challenges facing mattress retailers and then implement strategies to overcome them.
Read on to learn more about obstacles facing mattress retailers this year and what you can do to succeed despite those challenges.
Growing Mattress Market Forecasts
The mattress industry will face many challenges in 2023. Various market fluctuations, economic considerations, and consumer habits affect the success or failure of mattress retailers nationwide. However, in the face of market challenges, the mattress industry is expected to enjoy measurable growth coming out of 2023.
Now more than ever, consumers understand the intricate connection between good sleep hygiene and overall health. Health and wellness culture contributes to the success of mattress retailers. Consumers want to invest in both short- and long-term health solutions. An increased focus on quality sleep has resulted in market growth despite many factors that might slow mattress sales.
Luxury mattress options also contribute to a growing market. Luxury mattress products offer true value to the consumer. As a result, retailers can justify setting a luxury price point. Many consumers shopping with a “health and wellness” mindset prepare to spend more on a mattress or mattress accessory that delivers legitimate health benefits.
Consumers want quality sleep and know that the right mattress contributes significantly to their health. The need for mattresses is there. It’s up to mattress retailers to understand the market to see high sales numbers in 2023.
Challenges Facing Mattress Retailers in 2023
Even with the growth potential, many variables create challenges for mattress retailers. Understanding these challenges and how to overcome them –– and make them work to your advantage –– will be the key to your success in 2023 and beyond.
Below we explore the top challenges you’re likely to face this year, then provide helpful insight to create opportunities for more sales and growth.
Inflation Affecting Discretionary Spending
Every industry feels the weight of our current economic climate, specifically ballooned inflation. Inflation rates have significantly altered consumer spending habits and shopping behaviors, causing consumers to more carefully consider where they invest their resources.
Consumer prices rose 8.2 percent over 2022, spending nearly $500 more per month for the same goods and services they purchased in 2021. With necessities like food and housing greatly affected by inflation, shoppers must determine where to spend their precious resources and which purchases to put off until inflation rates level out. Rising inflation slows or even negates gains in wage increases and wealth, putting a thumb on consumer spending, which affects retailers in every industry.
Decreased discretionary spending poses challenges for mattress retailers. And as wallets tighten, durable goods are taking the biggest hit. As discussed above, inflation affects every market. But mattress retailers are especially vulnerable as consumers reserve their spending for items they can’t do without, like groceries and housing. Recent research from Reuters found that durable goods spending plunged a steep three percent in the last months of 2022. The effects linger into 2023.
Despite mattresses’ positive impacts on health, many consumers prioritize spending on other goods or products that feel more immediate or necessary.
Meeting the Needs –– and Price Points –– of Every Consumer
Mattress retailers face the unique challenge of providing diverse product offerings to equally diverse audiences.
Mattress companies and retailers must meet the varied needs of their customers. For many retailers, that means carrying mattress options that range from essential to luxury with respective pricing. Because shoppers are more particular about how much and where they spend, retailers should provide options for every budget and price point to attract a broad customer base.
In addition to inventory options, brands and retailers must meet shoppers on their shop channels. Today’s consumer doesn’t begin the mattress purchase process in-store. They’re researching online, evaluating customer reviews, product benefits, and unique features for potential mattresses. Retailers must understand the nature of omnichannel retail to engage with as many shoppers as possible.
Taking advantage of the current economic climate requires mattress retailers to cater to their audience’s needs. Despite the market’s many challenges, retailers can succeed by offering a range of products and creating an omnichannel marketing strategy that meets customers where they are.
Weakened Housing Market
This year has seen –– and will likely continue to see –– a slowdown in the housing market. Increased interest rates have hampered many hopeful buyers’ attempts at homeownership.
Housing starts and sales of existing homes have historically benefited the mattress industry. But 2023 has shown low numbers in the housing sector for new builds and existing home sales. Fewer home sales translate to fewer mattress sales.
Mattress retailers must innovate to succeed in a weakened housing market and highlight consumer need for new, quality mattresses in their current spaces.
Consumer Hesitation with Big-Ticket Purchases
Many factors affect consumer spending within the bed products and mattress industry. Economic volatility, inflation, and geo-political issues affect the consumer psyche and purchase behaviors.
For the reasons explored in this article –– and more not listed –– many shoppers hesitate to commit to big-ticket purchases. This caution is especially evident in consumers with poor credit and low discretionary spending budgets.
Mattress retailers must provide alternative payment options to cultivate confidence in potential customers and make mattress purchases possible. Buying a new mattress isn’t a realistic option for many shoppers without credit or lump-sum cash reserves. But by providing consumer financing options through United Consumer Financial Services, you make your products accessible to many more shoppers.
Mattress financing empowers your customers to choose the new mattress they want and bring it home when they want it. Financing increases purchase power, allowing shoppers to upgrade their mattress choice while paying off their installment loan through affordable monthly payments.
Consumers need affordable, predictable payment options to bring home a new mattress today. UCFS provides the financing services you need to empower your shoppers and sell more mattresses starting now.
Win Your Market by Catering to the Consumer
A quality mattress is essential for your health. But many individuals are forced to choose between planned monthly expenses like food, gas, housing, and goods like mattresses and bed products. As a result, they’re getting low-quality sleep that affects all aspects of their life and well-being.
In a challenging season for mattress retailers, you can provide the access your customers want and need while securing your success in the market. Understanding the potential challenges 2023 will bring empowers you to proactively address weaknesses in your business and position yourself as the ideal solution for your target audience.
Reach out to the team at UCFS today to learn how we can help you sell more mattresses and provide better sleep for more shoppers than ever before.