Mattress Firm Creates Bed In Box Startup To Challenge Casper

This is source I found from another site, main source you can find in last paragraph

>Mattress Firm Holding Corp., aiming to shake up the bedding industry and appeal to younger shoppers, is launching an internal startup brand that will let customers pick out mattresses in stores and have them shipped in a box to their home.

Called Tulo, the new brand is targeted predominantly at millennial, male customers -- the kind of shoppers who might be inclined to try >Casper Sleep Inc., an online rival that has pioneered the bed-in-a-box approach. Tulo’s debut follows Mattress Firm’s rollout two years ago of the >Dream Bed mattress, a product that could only be ordered online.

Tulo

Source: Mattress Firm Holding

With Tulo, the idea is to let customers test out the beds first in Mattress Firm’s brick-and-mortar stores, giving the company an edge over the likes of Casper.

“We used the Dream Bed to learn what customers want,” said Sunni Goodman, a spokeswoman for Mattress Firm. “We decided to roll out a new brand to speak to a younger, more digital native audience that would still like to come in the store and try it out.”

Mattress Firm is coming off a tumultuous stretch. It bought the Sleepy’s chain in February 2016 -- creating a new mattress giant in the U.S. -- and then set about rebranding stores with the Mattress Firm name. The company was then acquired last September by South Africa-based >Steinhoff International Holdings NV.

Profit Squeeze

Mattress Firm’s >lackluster operating margins have weighed on shares of its new parent company, increasing pressure on the business to get more entrepreneurial. Goodman said that Mattress Firm has conducted research on bed-in-a-box products for several years now, looking to find an underserved piece of the market.

“We discovered that the real trend in retail is an intersect between online and brick and mortar,” she said. “Other retailers obviously don’t have the footprint we have to allow customers to come in and try the bed before they buy it.”

Source: Mattress Firm Holding

Customers will have the option of ordering online, visiting one of Mattress Firm’s 3,500 stores, or doing both. The brand will first launch in New York, where most Mattress Firm stores will have a Tulo section. The new product will reach almost all U.S. stores by the end of the year and expand to international locations by mid- to late-2018.

Casper, meanwhile, has partnered with >Target Corp. to sell its boxed mattresses in physical stores. But it’s hard to compete with Mattress Firm’s presence. In places like New York City, the chain has locations seemingly on every corner, said Bloomberg Intelligence analyst Seema Shah.

“They really are sort of the Starbucks of mattresses,” she said. “There’s no other retailer that can compete with them.”

Mattress Firm will offer three different comfort levels: soft, medium and firm -- all within the price range of $375 to $800. Like other brands, it also offers a 120-night satisfaction guarantee. If customers aren’t happy, the company will pick it up for free and offer exchange, credit or a full refund.

“It’s an interesting exercise to have this startup mentality,” Goodman said. “We have the advantage of thinking like a startup and having a larger company backing it.”

This is source I found from another site, main source you can find in last paragraph

Source : https://www.bloomberg.com/news/articles/2017-10-12/mattress-firm-creates-bed-in-box-startup-to-challenge-casper-j8ok9ivu

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