Where Retailers Should Place Their Bets in the Year Ahead

Originally published November 17, 2025. This version was rebuilt from ICSC survey and company releases for the FIN archive, and the facts are as of that date.

In mid-November the question for the year ahead was less about whether shoppers would spend and more about where. Holiday plans looked steady. The bedding results showed how differently companies were coming through the same market.

The short version

• Shoppers planned to spend a bit more over the Thanksgiving weekend than a year earlier.
• Somnigroup grew on the back of Mattress Firm, Purple held steady with better margins and Sleep Number shrank.
• South Bay International bought the key operating assets of Corsicana Mattress.

Holiday weekend plans held up

An ICSC survey found shoppers expected to spend an average of $542 from Thanksgiving through Cyber Monday, up from $529 a year earlier, across stores and online.

The survey did not break out furniture. Still, a steady weekend gave stores a chance to pull forward big-ticket shoppers with financing and delivery offers rather than deeper discounts.

Three bedding companies, three paths

Somnigroup International reported third-quarter sales up 63.3% to $2.12 billion, mostly from adding Mattress Firm. Gross margin rose to 44.9%, and the company set adjusted EPS guidance of $2.60 to $2.75.

Purple Innovation's revenue was $118.8 million, about flat, while gross margin climbed to 42.8% and the Mattress Firm rollout stayed on track.

Sleep Number's net sales fell 19.6% to $343 million on lower volume and fewer stores, and the company described a company-wide turnaround.

Scale and a big retail partner were helping. A brand selling mainly through its own stores was carrying the full weight of slow traffic.

Corsicana gets a new home

South Bay International acquired key operating assets of Corsicana Mattress and set up a Corsicana division to keep its products and retail programs running. South Bay is strong online, and Corsicana brings traditional retail relationships.

Where the bets pointed

The safer bets in late 2025 looked like scale, a strong retail partner and margin discipline. Mattress makers without one of those were being folded into larger groups.

Related on FIN

• Furniture Shoppers Are Holding Back
• Furniture Showrooms Run on Morale

Sources

• ICSC, Consumers Expected to Spend $127 Billion Over Thanksgiving Weekend 2025
• Somnigroup International, Third quarter 2025 results
• Purple Innovation, Third quarter 2025 results (SEC exhibit 99.1)
• Sleep Number, Third quarter 2025 results (SEC exhibit 99.1)
• South Bay International, Acquisition of key assets of Corsicana Mattress Company