The bedding industry recorded 0.8% unit growth in the second quarter, while the wholesale dollar value of bedding shipments increased 5.5%, an industry report said.

The latest 2016 Bedding Market Quarterly, issued by the International Sleep Products Assn., said units are down 0.8% in the first six months of the year. The dollar value of bedding shipments is up 2.8% in that same time period.

One of the most notable findings in the report is that shipments of high-end sleep sets, those retailing at $2,000 and up, accounted for 30.4% of dollars in the second quarter, a soaring increase over 2015, when those beds had an 18.5% share for the full year.

In units, beds retailing at $2,000 and up commanded 9.5% of total units in the second quarter, a major increase over the 5.2% share those high-end beds enjoyed for the full year in 2015, ISPA said.

In the second quarter, mattress units were up 2.0%, while foundation units were down 0.7%. Mattress dollars were up 7.2% in that quarter, while foundation dollars were down 3.3%.

For the first half of the year, mattress units are up 0.5%, while foundation units are down 2.4%. Mattress dollars are up 4.3% in the first half, while foundation dollars are down 4.8%.

The foundation figures do not include adjustable bases, one of the fastest-growing categories in the industry.

The ISPA report presents a snapshot of performance by producers who accounted for about 70% of total industry units and about 77% of the wholesale revenue of the industry in 2015.

The report said the average unit price for mattresses increased 5% in the second quarter, to $376.66, while the average unit price of foundations dropped 2.5%, to $79.32. For the first half of the year, the average unit price for mattresses is up 3.8%, to $365.27, while it is down 2.5% for foundations, to $78.13.

The report includes a commentary by guest columnist Keith Hughes, managing director of SunTrust Robinson Humphrey, the corporate and investment banking division of SunTrust Bank.

“The 2Q 2016 mattress results in this report show somewhat of a pickup for the industry,” Hughes wrote. “Units were up 1% with an increase of 2% in mattress units. While not exactly a surge, it is a change after the recent performance. The growth of industry dollars at around 6% and a 7% increase in mattresses is more what we have become used to in the sector.”

The ISPA reports, closely watched by industry analysts, may not reflect the performance of the full mattress industry, the bedding industry’s trade association cautions. Changes in distribution and market share by various players may be reflected in the numbers, rather than increases or decreases in the overall market, ISPA said.

(Source: Furniture Today  Author: David Perry)