Not sleeping on the job… Tempur Sealy agreed to buy Mattress Firm this week in a $4B deal that would combine one of the US’s largest mattress manufacturers with its largest specialty mattress retailer. The acquisition could help firm up two companies and an industry facing sagging post-pandemic mattress demand. If approved, the deal would create a biz with a combined 3K brick-and-mortar stores and 21K employees, and might inspire competitors (like: Sleep Number, Purple) to follow suit, or risk losing market share to a would-be juggernaut. But it's not all sweet dreams:
- Counting sheep: Antitrust regulators are paying close attention to the deal, which is expected to close late next year.
Dreamland is open for business… and Big Sleep isn’t hitting the hay anytime soon. Merging manufacturing and retail, Tempur Sealy aims to stay at the top of a $100B industry that’s more than just mattress tech and bedding-material science. Close your eyes and see: posture-specific pillows to Dr. Scholl’s-ify your head, functional beverages to help you wind down, snoozy podcasts by Calm and Audible to lull you into a slumber, and trackers to help you catch the best z's.
Peak REM-fficiency is always just around the corner… 40% of surveyed adults said their sleep quality decreased during the pandemic, while 55% listed getting good sleep as a major priority. A rise in “sleep tourism” — aka: hotels and spas promoting rest-focused rooms and amenities — suggests sleep searchers are willing to pay for the pleasure. High up on bedtime optimizers' list: a lasting mattress.