Sleep Country CEO Seeks Acquisitions Amid Soaring Revenue

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Record First-Quarter Results Fuel Ambition for Growth

In a bid to further capitalize on its strong performance, Sleep Country Canada Holdings Inc. is eyeing expansion through mergers and acquisitions. The mattress retailer has just posted record first-quarter results, with revenue soaring by $24 million from $183 million in the first quarter of 2021 to $207 million in the first quarter of 2022.

Market Share and Expansion Plans

According to Stewart Schaefer, Sleep Country’s CEO, the company currently holds a market share of 35-40% in the Canadian mattress market. However, Schaefer is keen on increasing this share through strategic acquisitions. The company aims to expand its presence across Canada, with a focus on growing its store count and digital footprint.

Challenges Ahead

Despite the challenges posed by rising food inflation (up by 8.7% in March) and consistent increases in gasoline prices since mid-2020, Schaefer remains optimistic about the future. He attributes this resilience to Sleep Country’s strong consumer base, which has shown no signs of pulling back.

The Impact of COVID-19 on Consumer Behavior

The pandemic has accelerated a shift towards omnichannel retailing, with consumers increasingly using online platforms for research and then making purchases in-store or vice versa. Schaefer acknowledges this trend, stating that retailers need to adapt their strategies to cater to the evolving needs of customers.

Adaptation and Innovation

To remain competitive, Sleep Country is working on launching a new store concept with an expanded customer experience in the next few months. This includes investing in digital platforms and enhancing the shopping experience through the integration of technology.

Employee Experience and Retention

Schaefer emphasizes the importance of employee satisfaction and retention in driving business success. He plans to bring employees back to the office on a hybrid schedule starting May 24, with incentives such as food trucks, prizes, gifts, and health and well-being credits.

Conclusion

Sleep Country’s commitment to expansion through mergers and acquisitions reflects its ambition to solidify its position in the Canadian mattress market. By adapting to changing consumer behavior and investing in employee satisfaction, the company is poised for continued growth and success.

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