A Closer Look: Memorial Day Mattress Sales
This year’s Memorial Day Weekend sales numbers are painting an interesting picture of the mattress retail industry right now. While the data is still preliminary, some analysts are already saying mattress sales over this popular holiday weekend were down compared to last year. But, despite this downward trend, other experts are reporting that sales for mattresses nevertheless spiked during Memorial Day when compared to the beginning of the month of May. This poses an intriguing question for the industry. Are these ongoing sales trends just further proof that demand for mattresses is shifting downward—or is it reinforcing the idea that the traditional promotional cycle has changed?
Let’s Explore The Numbers
While official sales numbers for this quarter won’t be released until later this year, some analysts and data firms have already shared their own initial insights.
First, Seth Basham, an analyst at the wealth management firm Wedbush, noted that there were signs to suggest that Memorial Day mattress sales were more sluggish than expected this year. “Our Memorial Day weekend mattress sales checks with retailers and industry contacts leaned negative,” he wrote in a note to his clients, “with total brick-and-mortar sales flat-to-down [last-seven-days, year-over-year], and implying industry unit sales down mid-single- to high-single digits for the holiday period.”
While single digit decreases may not seem drastic, they are notable considering the signs of “incremental promotional intensity” and “outsized discounting” within the industry, Basham explained.
On the other hand, Criteo (a global technology company that offers insights on consumer trends) is delivering a somewhat different message when it comes to this year’s Memorial Day sales performance. The company zeroed in on just the month of May—tracking the trajectory of mattress purchasing from the start of the month to the end. In comparing May 30 to the first two weeks of the month, Criteo actually found a 99% increase in mattress sales.
A Closer Look: Product Segments and Categories
While the overall sales numbers only offer broad strokes insights, both sources also dove deeper into different products segments and categories as well.
Basham noted that, even amidst this slow-down, premium and luxury priced mattresses fared better than promotional models. This tracks with other retail insights we’ve recently shared, which have found that demand for higher-end furniture and mattress categories is still strong.
Criteo looked beyond the mattress category towards bedding accessories as well. The company reported that sales for beds and bed frames increased by 35% on Memorial Day Weekend, while bedroom furniture sets saw a 28% jump. Both of these categories fell short of the notable bump that mattresses alone experienced. This information introduces some thought-provoking questions. Is the consumer demand for bed frames and bedroom furniture sets less affected by promotions? Or do retailers rely too heavily on these categories as promotional giveaways—missing a potential opportunity for meaningful add-on sales?
Looking Back
Reports have already begun showing a slower mattress market for 2022. According to the International Sleep Products Association’s Q1 Bedding Market Quarterly, total units of mattresses, foundations and adjustable bed bases fell 4.6% in Q1 of 2022 year-over-year. At the same time, the wholesale dollar value of those units increased 4.9%, underscoring the impact that inflation has had on the industry.
When evaluating this year’s sales data, though, it’s critically important to remember that 2021 was a banner year for the mattress industry. According to ISPA, Q2 of 2021 saw total unit shipments increase by 16.2% from the year prior, even with dollar values surging over 50%. As for last year’s Memorial Day Weekend? According to Criteo, that holiday saw all furniture sales (including mattresses) increase by 100%—a slightly higher uptick than this year.
Takeaways
Mattress sales jumped up this Memorial Day Weekend, but they didn’t quite achieve the same levels they did last year. More than just reflecting the slowing consumer demand, these insights open up new ideas about how the mattress promotional cycle has evolved in recent years.
When it comes to sales, mattresses have traditionally been closely tied to a regular holiday promotional schedule. This has been for better or for worse. On the one hand, these holiday promotions often account for the bulk of retailers’ annual sales. But, on the other, the approach conditions consumers to always wait for a deal. Not only does that add to the confusion many feel about pricing, it can also deteriorate their confidence in the their ability to judge the true value of the products they’re looking at.
Retailers invest a lot of their ad and marketing budget into these promotions. With this Memorial Day showing somewhat dwindling returns on this investment, it may be time to reevaluate this approach. How are you engaging with consumers in between holiday promotions? A comprehensive year-round marketing strategy will keep your brand and store top of mind the next time they’re ready to buy.
