Tempur Sealy International, Inc. (TPX) is a well-known American mattress company that has been in business for over 30 years. The company is known for its high-quality mattresses, including the popular Tempur-Pedic brand. However, recently, there has been news that Mattress Firm, one of the largest mattress retailers in the US, will no longer be selling Tempur-Pedic mattresses. This has caused quite a stir in the mattress industry and has left many wondering what could have led to this decision. Let's take a closer look at the top 10 reasons why Mattress Firm is no longer selling Tempur-Pedic mattresses.Tempur Sealy International, Inc. (TPX) Stock Price, Quote and Analysis
The main reason for Mattress Firm's decision to stop selling Tempur-Pedic mattresses is a contract dispute between the two companies. Tempur-Pedic and Mattress Firm have been in a partnership since 2002, with Mattress Firm being the biggest retailer of Tempur-Pedic mattresses. However, their contract ended in 2017, and negotiations for a new one have been ongoing. The dispute is over the terms of the new contract, and until an agreement is reached, Mattress Firm will not be selling Tempur-Pedic mattresses.1. Contract Dispute
One of the main points of contention in the contract dispute is the high prices of Tempur-Pedic mattresses. Mattress Firm claims that the prices of Tempur-Pedic mattresses are too high and are not competitive in the current market. This has led to a decline in sales, and Mattress Firm has decided to focus on more affordable mattress options.2. High Prices
The mattress industry has become increasingly competitive in recent years, with many new and established brands vying for customers' attention. This has put pressure on companies like Tempur-Pedic to keep their prices competitive, which they have struggled to do. With so many other options available at lower prices, Mattress Firm has decided to no longer sell Tempur-Pedic mattresses.3. Increase in Competition
Consumer preferences are constantly evolving, and with that, their expectations for mattresses have also changed. While Tempur-Pedic mattresses were once the top choice for many customers, there has been a shift towards more affordable and eco-friendly options. Mattress Firm has recognized this trend and has decided to cater to the changing demands of their customers.4. Consumer Preferences
Mattress Firm has been facing financial troubles in recent years, with the company filing for bankruptcy in 2018. This has led to the closure of many of its stores, and as a result, the company has had to make some tough decisions about the products it sells. Cutting ties with Tempur-Pedic is one of those decisions.5. Mattress Firm's Financial Troubles
Mattress Firm has been focusing on its in-house brands in recent years, including Sleepy's, Sleepy's Reserve, and Dream Bed. These brands offer a variety of mattress options at different price points and have been performing well for the company. This has led to a decrease in the demand for Tempur-Pedic mattresses, making them less of a priority for Mattress Firm.6. Focus on In-House Brands
Tempur-Pedic has faced negative publicity in the past, with some customers complaining about the durability and comfort of their mattresses. While the company has made efforts to improve their products, the negative reviews have had a lasting impact on their sales. Mattress Firm has decided to distance itself from this negative publicity by no longer selling Tempur-Pedic mattresses.7. Negative Publicity
Tempur-Pedic mattresses have been around for over 30 years, and while they were once considered revolutionary, there has been a lack of innovation in the brand in recent years. This has made it difficult for the company to keep up with the constantly evolving mattress industry, and as a result, they have lost their competitive edge.8. Lack of Innovation
In today's digital age, more and more customers are choosing to purchase mattresses online rather than in stores. This has posed a challenge for Mattress Firm, as they have a large number of physical locations. By no longer selling Tempur-Pedic mattresses, the company can focus on promoting their own online sales and in-house brands.9. Shift Towards Online Sales