From Furniture Today:
LAS VEGAS — Amazon’s mattress business is booming and is estimated to be running at an annual rate of $2 billion, analysts say.
“Amazon is speculated to be running at $2 billion of annual mattress sales with growth running at plus-50%,” said Piper Jaffray analysts Peter Keith and Robert Friedner in a report issued during the recent Las Vegas Market.
They added: “Wayfair is said to be at $300 million to $400 million and showing similar growth. Online mattress customer acquisition costs were discussed in several meetings as running at $300-$400 (and moving higher). Key players in branded bed-in-a-box are getting established, and a shakeout of smaller players is largely expected.”
The analysts also wrote that online sales of mattresses were 20% of total units in 2018, which was up from 12% to 15% in 2017, “marking notable disruption for the industry.”
Looking at trade issues, the analysts noted that, while a preliminary ruling on the China anti-dumping issue was due no later than April 15, “this ruling has now been pushed back by 34 days (the length of the shutdown).”
They said that import mattress activity “appears to have slowed already, as any ruling would have a 90-day look-back period.” But they added that “there is still a large inventory glut of late 2018 imports that will likely take through Q2 to sell through.”