LEXINGTON, Ky. (PRNewswire) — Tempur Sealy International is broadening distribution of its bedding products by entering into two new third-party retail relationships and expanding an existing retailer relationship. The additional net sales from these three supply agreements are expected to be in excess of $400 million on an annual run rate basis once product launches are completed.
Tempur Sealy announced it has entered into a supply agreement with Mattress Firm, the largest specialty mattress retailer in North America, to reintroduce Tempur-Pedic, Stearns & Foster, and Sealy branded products into approximately 2,500 Mattress Firm stores across the U.S. This agreement represents a significant opportunity for both companies. This agreement reunites some of the strongest bedding brands with the more than three million people a year that find their right sleep solution at Mattress Firm. The reintroduction of products into Mattress Firm stores is expected to commence in the fourth quarter of 2019 and to be completed early in the first quarter of 2020.
Tempur Sealy also announced the recent expansion in its long-term supply agreement with Big Lots, a 1,400-store retailer in the U.S. This agreement is expected to grow the sales of entry-level Sealy products and to drive unit volume, primarily in the below $1,000 retail price point, a segment that has been a recent focus of the company. Big Lots’ growing partnership with Sealy is evidence of the investments in product quality and manufacturing reliability that Sealy has made in recent years. Sealy’s launch of new products with Big Lots is expected to be complete by year end 2019.
As previously announced, the company also recently extended its European retail distribution network by reaching a supply agreement with Beter Bed Holding, one of Europe’s leading bedding retailers. The launch of new products with Beter Bed Holding is expected to be complete by the end of 2019, and initially will include over 100 stores.
Tempur Sealy International Chairman, President and CEO Scott Thompson said, “The expansion of our distribution is a testament to the strength of our brands, coupled with reliable manufacturing and quality service. Our premium brands and innovative products have allowed us to service a growing customer base. We expect these newly reported transactions will have a positive impact on expanding our brands’ share of voice in the market and in leveraging our cost structure. Aligning with quality third-party retailers in a win-win structure is consistent with our distribution strategy.”