Mattress Firm and Tempur Sealy International have agreed on a multi-year extension to their current partnership, extending the supply agreement through 2025.
Having signed the original three-year agreement in 2019 to reintroduce Tempur-Pedic, Stearns & Foster, and Sealy products to the retail giant’s mix, the extended agreement secures Tempur Sealy’s brand distribution through more than 2,300 Mattress Firm stores.
“Mattress Firm is a valued retail partner and we are thrilled with the growth potential the extension of our agreement provides for both companies,” says Scott Thompson, chairman and CEO of Tempur Sealy. “We believe it also creates a stronger domestic bedding industry, which since 2019 has realized increasing average selling prices and experienced growing advertising share of voice for bedding products engaging consumers and driving foot traffic to all stores.”
John Eck, president and CEO of Mattress Firm, adds, “This extension of our agreement with Tempur Sealy underscores our mutual commitment to a long-term partnership,” “With the additional certainty provided by this early extension, we are able to approach product innovation and address consumer needs collaboratively, and with renewed focus. We are very optimistic about what we can achieve together in the years ahead.”
When you have the top two brands in the industry teaming up, that usually delivers great results for everybody involved but it does raise a few questions. What impact will this have on the other suppliers selling to Mattress Firm? How much will this impact earnings for TSI? Time will tell!