Dive Brief:
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Nest Bedding, which was established in 2012, ended fiscal year 2018 at $28 million. Comparable sales also rose 20% in the year-to-date period.
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The company announced plans to operate at least 15 Nest-exclusive brick-and-mortar stores by the end of 2019 (which includes four to five stores opening in California this year) and plans to add "nearly a dozen new products" to its selection. These moves, along with plans to expand its online presence with an Amazon-exclusive mattress, are all part of the retailer's plan to end fiscal year 2019 at $34 million, according to a release emailed to Retail Dive.
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The direct-to-consumer company announced plans to open 12-15 additional stores in the next five years including in cities like Houston, Dallas, Austin, Washington D.C., Boston, Miami and Portland, said CEO Joe Alexander in an email to Retail Dive.
Dive Insight:
With Mattress Firm filing for bankruptcy protection in October last year, which entailed closing 700 of its underperforming stores, it seems like mattress startups are popping up everywhere in hopes to get consumers to go to bed with them.
And while Nest Bedding expects to reach $34 million by the end of this year, competition within its market segment is bringing in nearly 10 times that revenue. Nectar Home, parent to direct-to-consumer mattress brand DreamCloud, topped $300 million in annual revenue in its two years of existence, and Casper, a leader in the mattress startup space, announced plans to open 200 stores across North America.
Nest Bedding, which touts that it produces mattresses in the United States, announced plans to roll out nearly a dozen new products this year, including a sleep apparel line. Expanding beyond mattresses may help the company better survive in a space with growing competition. Nest Bedding also announced the launch of its Amazon-only mattress, FLIP, a move that may prove beneficial as more startups form partnerships with legacy retailers such as Amazon with Tuft and Needle, Casper with Target and Williams-Sonoma brands West Elm and Pottery Barn with Leesa. Additionally, Nectar Home just last month launched rug brand "Wovenly," the first product line from the company outside of the bedding and mattress space.
Product and sales growth from Nest Bedding, albeit small in comparison to competitors in the space, indicates the disruption in the mattress industry from these startups continues to ripple outward.
