From Mattress Mergers to Market Shifts. Key Furniture Insights and Supply Chain Threats

Originally published September 23, 2024. This version was rebuilt from Tempur Sealy's transaction update, the FTC's complaint release, the Federal Reserve's consumer credit report and ILA statements for the FIN archive, and the facts are as of that date.

Late September 2024 brought a major bedding store deal tied to the biggest merger in the category, signs of more borrowing by consumers and a port deadline one week away.

The short version

• Tempur Sealy agreed to sell 73 Mattress Firm retail locations and Sleep Outfitters to Mattress Warehouse.
• The Fed said consumer credit increased at an annual rate of 6.0% in July.
• The ILA said an October 1 strike seems more likely.

Mattress Warehouse's major acquisition

Tempur Sealy said it agreed to sell 73 Mattress Firm retail locations and its Sleep Outfitters subsidiary, with 103 stores and seven distribution centers, to Mattress Warehouse. Tempur Sealy would keep supplying the divested stores.

The sale depended on Tempur Sealy closing its Mattress Firm acquisition, which the FTC had voted to block, arguing the deal would let the world's largest mattress supplier suppress competition. Tempur Sealy said hearings were set to begin November 12.

Update. Tempur Sealy completed the Mattress Firm acquisition on February 5, 2025.

Rising demand for credit

The Federal Reserve said consumer credit increased at a seasonally adjusted annual rate of 6.0% in July. Revolving credit, which includes credit cards, grew at a 9.4% rate, and nonrevolving credit at 4.8%.

Faster growth in revolving credit suggested more households were financing purchases, which matters for furniture retailers that rely on promotional financing.

Potential labor strike at U.S. ports

On September 17 the ILA said a strike at all Atlantic and Gulf Coast ports at 12:01 am on October 1 seems more likely as time is running out to reach a new Master Contract with USMX.

With a week to go, furniture importers were weighing whether to hold, reroute or rush shipments.

Key takeaways

A big mattress retail deal, rising credit use and the port deadline showed the industry juggling consolidation, financing and supply risk at the same time.

Related on FIN

• Every Door in Town
• The Freight Mafia's New Playbook

Sources

• Tempur Sealy International, Mattress Firm transaction update (SEC exhibit, Sept. 23, 2024)
• Federal Trade Commission, FTC moves to block Tempur Sealy's acquisition of Mattress Firm (July 2, 2024)
• Tempur Sealy International, Completes acquisition of Mattress Firm (Feb. 5, 2025)
• Federal Reserve, Consumer Credit G.19, July 2024 (Sept. 9, 2024)
• International Longshoremen's Association, Rank and file ready to strike on October 1 (Sept. 17, 2024)