How does online mattress competition affect buying a mattress store?

Boxed mattresses delivered to the door changed how many people shop for a bed. Some of those brands have since opened their own showrooms or sell through other stores. A buyer of a mattress store is therefore buying into a market with many routes to the customer, and needs to see how this particular store has coped.

What the store offers that a website cannot

The store’s main edge is the chance to lie on a bed before buying it, with someone who can explain the differences. Ask the seller how the store makes that experience worth a trip. Look at reviews, repeat and referral business and how long visits take. If customers mostly arrive having already chosen a brand online, the store is competing on something else, such as price or delivery.

Reading the sales records

Ask for monthly sales by supplier line for several years, not just the latest year. Look for lines that have faded and lines that have grown. Check whether the store’s best sellers are also sold online by the supplier directly, since that can pull customers away. Your accountant can help you separate a short-term dip from a lasting change in the numbers.

Supplier terms and brand exposure

Ask whether any supplier gives the store a protected territory, or whether a supplier could open its own showroom nearby. Check whether the store depends heavily on one brand. A store with several lines usually has more room to adjust if one supplier changes direction. For a comparison from the neighbouring trade, see online competition and furniture stores.