Sleep Country enters e-commerce to broaden appeal

TORONTO — The head of Sleep Country Canada hopes its new bed-in-a-box e-commerce business will appeal to tech-savvy customers and those who live too far to visit its stores.

But CEO David Friesema said its latest foray doesn’t mean the company has plans to abandon its showroom business model any time soon.

“In the mattress industry, the majority of customers still want to buy in the store,” Friesema said in an interview Wednesday following Sleep Country’s quarterly conference call with analysts.

“It’s a very tactile purchase. They want to know what they’re going to be spending a third of their life on.”

Compared to Casper, Endy and Leesa, which launched two to four years ago and also sell a bed-in-a-box product that can be delivered, Sleep Country (TSX:ZZZ) has been slow to enter the e-commerce space.

Sleep Country went online this month with its e-commerce website, where customers can buy its $995 Bloom mattress and accessories such as bedding and pillows. It doesn’t plan on expanding its online offering to its other mattresses at this time.

“This is all new to us, so this is just a possible increase to us,” Friesema said.

“Do I view them as a threat? I view them as a good competitor just like I view other competitors.”

He said what sets Sleep Country apart in an industry he estimates to be worth $1.5 billion to $2 billion is that it sells a variety of mattresses, while its rivals only offer one.

Friesema said the company remains focused on expanding its presence and renovating its existing stores. There are plans to open between eight to 12 new locations a year, he said.

Sleep Country reported its first quarter earnings after markets closed Tuesday, showing a year-over-year rise in net income from operations of 40.6 per cent to $10.3 million in the three-month period ending March 31.

Revenue increased 15.8 per cent to $124.3 million while same-store sales, an important metric in retail, were up 11.9 per cent.

Sleep Country went public in July 2015. It had originally been listed on the Toronto Stock Exchange as an income trust from 2003 to 2008, when it was bought out for $356 million by Birch Hill Equity Partners and Westerkirk Capital.

Founded in 1994, the company owns and operates 237 stores in Canada under its own name and the Dormez-Vous? banner as well as 17 distribution centres.

Just Posted

New Alberta dental fee guide calls for 8.5% reduction in fees

A new dental fee guide has been announced in Alberta that the… Continue reading

Lacombe ready to light the night

The Christmas spirit comes to Lacombe Thursday night with the start of… Continue reading

Opioid prescriptions up across country, but daily doses dispensed down: report

TORONTO — The overall number of prescriptions for opioids has increased over… Continue reading

Notley pleads with political foes, allies to support Alberta pipeline projects

OTTAWA — Alberta Premier Rachel Notley issued warnings to all political parties… Continue reading

Uber isn’t saying how many Canadians were affected by year-old hack

TORONTO — Uber is owning up to a year-old security breach that… Continue reading

VIDEO: Replay Red Deer: Nov. 19

Watch news highlights from the week of Nov. 13

Creationist will speak at home-schooling convention in Red Deer

Ken Ham has debated Bill Nye on the Earth’s origins

Update: Innisfail girl found

A 15-year-old missing Innisfail girl has been located safe and sound. Police… Continue reading

Cost to fix Phoenix pay system to surpass $540 million, auditor general says

The federal government’s chronic salary struggles will take more time and more… Continue reading

Red Deer Christmas Bureau to help 1,300 children this year

Demand is high, but Red Deer always provides

CP Holiday train makes stops in Central Alberta

The popular train will feature entertainment from Colin James and Emma-Lee

Kittens rescued after allegedly being tossed from vehicle

Couple finds abandoned kittens new home through Facebook

VIDEO: ‘Party bus’ goes up in flames in Vancouver

Fire crews responded to the late night blaze

Chicken crosses B.C. road, stops traffic

Rooster makes early morning commuters wait in Maple Ridge

Most Read


Five-day delivery plus unlimited digital access for $185 for 260 issues (must live in delivery area to qualify) Unlimited Digital Access 99 cents for the first four weeks and then only $15 per month Five-day delivery plus unlimited digital access for $15 a month