Serta Simmons – Mattress Industry Positioning & Leadership Change Risks

1.

What is your outlook for the mattress and bedding industry over the next 12-18 months?

2.

Could you explain how the mattress and bedding industry is exposed to geopolitical tensions, specifically when we think of current areas of conflict?

3.

What are your thoughts on Serta Simmons’ supply chain and key risk areas, given your comments on the reliance on Asia?

4.

Could you elaborate on the competitive landscape? How does Serta Simmons stack up against other players in the space?

5.

What might be some of the defining characteristics that differentiate the winning from the losing brands for consumers currently, based on what you’re seeing with some of the supply chain issues?

6.

Have you noticed anything drastic in consumer behaviour as it has evolved over the pandemic, in terms of how consumers are approaching decision-making?

7.

What are your thoughts on replacement cycles? Have you noticed any changes there and different ways that we can think of replacement cycles across mattress types?

8.

How do you expect the younger consumers, as they age, to potentially change their thinking about these purchases over the next 10 years? That millennial demographic will presumably go from moving around a lot and buying cheap mattresses to buying homes. Would this cohort’s mindset change at all?

9.

What are your thoughts on how Serta Simmons addresses different life stages? Where are the strengths and weaknesses of the company’s different products?

10.

What do you think is happening with the online piece? You obviously mentioned Tuft & Needle seeing some success in the past, but now that’s slowing down. What’s changed?

11.

Do you think Serta Simmons’ online approach could change? Shelley Huff was promoted to CEO of the company in December 2021. Is there anything that suggests its online approach could turn around, given she comes from Tuft & Needle and previously from Walmart and e-commerce?

12.

What changes would make you a little bit more confident in Serta Simmons’ outlook? What would you do differently if you were in charge?

13.

You mentioned Serta Simmons has been reliant on the bricks-and-mortar channel and its partners there. Would it be sensible for the company to emphasise its own bricks-and-mortar footprint or more so invest in the digital capabilities to go D2C?

14.

Is there a potential longer-term shift in the consumer journey to making online purchases? Do you see consumers more incrementally edging towards starting their journey online or is it shifting back to legacy shopping, where you would go to the store and trial a mattress in person?

15.

What are your thoughts on brand loyalty for Serta Simmons? Is there any loyalty vs other brands to any of the company’s brands, including its core ones – Serta, Beautyrest, Tuft & Needle and Simmons?

16.

What are your thoughts on loyalty to other brands? We discussed Tuft & Needle. Are there any brands that consumers tend to be more loyal to when it comes to even those more nascent bed-in-a-box-type brands?

17.

Would you ever expect Serta Simmons to make changes to its marketing budgets for any of its brands? How high is the company willing to go when it comes to addressing the current demand environment?

18.

How would you grade Serta Simmons across its portfolio of brands on innovation?

19.

If you were ranked Serta Simmons’ innovation vs peers, where would it fall in the stack?

20.

What are your thoughts on pricing? We touched on inflation. What are your thoughts on the current pricing environment and pressure there for Serta Simmons?

21.

Do you find Serta Simmons is competitive on pricing vs peers or are there much more aggressive players?

22.

What is the most pressing issue you think we should be tracking for Serta Simmons in the coming three years?