We’re safe from monopolies when we sleep, right? If only that were so.
Over the past few years, a wave of consolidation has created sleep business juggernauts in both Canada and the United States. In 2012, manufacturers Tempur-Pedic and Sealy merged to become Somnigroup, before going on to acquire Mattress Firm – the largest U.S. sleep retailer – last year. Earlier this year, the Kentucky-based company announced a $2.5 billion (U.S.) acquisition of component maker Leggett & Platt, setting itself up to become a vertically integrated powerhouse with an estimated 40-per-cent share of the U.S. market.
Meanwhile in Canada, Sleep Country has been on its own acquisition binge. Aside from gobbling up a host of online bed-in-a-box sellers including Casper Canada, Endy and Silk & Snow, the Toronto-based company last year acquired the rights to Bed, Bath & Beyond, with plans to relaunch the brand. And just recently, the company paid $702 million to acquire Minneapolis-based retailer Sleep Number, marking its expansion into the United States. Sleep Country says the deal makes it the world’s second-biggest sleep-oriented company after, you guessed it, Somnigroup.
Nate Cangemi has more than 20 years experience in the sleep business and is the proprietor of Golden Dreams Mattress, an independent retailer based in Carslbad, Calif. He has been vocal of this growing consolidation on his social media channels, arguing that it is resulting in higher prices, homogenized choices for consumers and declining innovation.
He joins the Do Not Pass Go podcast to discuss how concentration and vertical integration is literally preventing people from getting a better night’s sleep.
Check out Golden Dreams Mattress here and on Instagram.
