Sleepy's

Sleepy's, LLC
Public
Traded as NASDAQ: MFRM
Industry Retailer
Founded 1957 (1957) (as Bedding Discount Center)
Founder Harry Acker
Headquarters Hicksville, New York, U.S.
Products Mattresses, Bedding
Brands Sealy, Serta, Simmons, Tempur-Pedic, Stearns & Foster, Beautyrest, Spring Air, King Koil, Ortho-Posture
Website www.sleepys.com

Sleepy’s is a retail mattress chain with over 1,000 stores, primarily in the Northeastern United States. The company was founded in New York City in 1931.[1]

Business history

A Sleepy's store in Old Saybrook, Connecticut.

In 1931, Louis Acker opened his first mattress store with his son, Harry. The business was incorporated in 1957 as Bedding Discount Center; in 1975 the name was changed to Sleepy’s. In 1977, Sleepy's opened its eighth store and relocated its corporate offices and warehouse to a 20,000-square-foot (1,900 m2) space in New Hyde Park. In 1986, it relocated headquarters and distribution center to a 60,000-square-foot (5,600 m2) building in Port Washington, NY. In 1993 Sleepy’s acquired Kleinsleep and in 1996 Mattress Discounters in New York and New Jersey. In 1994, the 75th store opened and the corporate headquarters and distribution center moved to Bethpage, NY in a 150,000-square-foot (14,000 m2) building that was expanded in 1995 to 80,000 square feet (7,400 m2).

David Acker, Harry’s son, became the president of Sleepy’s in 2001. In 2002, Sleepy’s built a new 211,000-square-foot (19,600 m2) warehouse in Robbinsville, NJ. Mattress Firm sleep chains locations in Connecticut and Massachusetts were acquired in 2003, and in 2007 Sleepy’s acquired the Rockaway Bedding chain adding 200 stores. In the summer of 2009 Sleepy’s moved its headquarters and New York distribution facility to a newly constructed 500,000-square-foot (46,000 m2) building in Hicksville, New York.[2] In 2009, Sleepy’s acquired the assets of Dial-A-Mattress International and 1-800-Mattress Corp.,[3] including its two domain names, and a year later the Connecticut mattress specialty chain Better Bedding.[4] In 2013, Sleepy’s expanded into the Chicago market.[5] In October 2014 Sleepy's opened its 1,000th store.[6]

The first use of the logo with the Sleepy's man in a red and white night shirt and cap was in 1976. In 1978 the first televised Sleepy's commercial starring President Harry Acker aired. In 1998 the firm began offering sales consultation via phone. A year later, in 1999, the Sleepy's jingle was written and produced by Rich Lehman of RKL Productions and Jerry Plotkin of Headroom Digital Audio which was retired in 2016 following the buyout from Mattress Firm. In 2009, the company launched their e-commerce website.[7]

In December, 2015, Sleepy's announced that it was being acquired by competitor Mattress Firm (MFRM) for $780 million.[8]

Business operations

A Sleepy's store in Brooklyn, New York, first opened in 1975

Sleepy's carries mattress brands including Sealy, Serta, Simmons, Beautyrest, Posturepedic, Tempur-Pedic, King Koil, and Stearns & Foster. Like other major retailers, Sleepy's carries mattress lines that are unique to the seller, so there is no way to compare prices with their competitors.[9][10]

Sleepy's stores are primarily in the Northeastern, Mid-Atlantic and the Midwest, including Connecticut, Delaware, District of Columbia, Illinois, Indiana, Maine, Massachusetts, Maryland, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Virginia, Vermont, and West Virginia. Nationwide delivery is available through their official website.

In 2009, a trade publication labeled Sleepy's as the fastest-growing furniture retailer in the US[11] and in 2014 ranked them 11th in growth.[12]

Complaints

In 2004, Sleepy's resolved a lawsuit filed by the New Jersey division of consumer affairs. The lawsuit alleged that Sleepy's misled consumers regarding their exchange policy, customer refunds, and advertisements. There were also questions about delivery of faulty merchandise and failure of delivery. Sleepy's agreed to pay $750,000 in costs and restitution to reach settlement. In addition to the payment the company agreed to clearer advertising, issuing refunds more willingly and improving customer service.[13]

In 2007, Sleepys agreed to pay $200,000 to resolve complaints and settle deceptive sales charges in NY. As part of the settlement, Sleepy's agreed to pay a total of $200,000, which includes restitution to consumers and penalties, as well as a commitment to new policies and procedures to achieve full compliance with local and State laws. The settlement marked a conclusion to the agency's extensive investigation into approximately 300 consumer complaints filed over the past three years through DCA or referred to the Department by other agencies including the New York State Attorney General's Office and the Better Business Bureau.[14]

In April 2011 Sleepy’s was cleared by Connecticut Attorney General George Jepsen of charges regarding complaints of bed bugs infestations and accusations of re-selling used mattresses.[15]

In 2014, Sleepy's was ranked last among 15 major mattress retailers listed in a poll of Consumer Reports readers, the same result it reported in its 2012 rankings. The 2014 ranking was based on 6,105 shopping experiences.[16][17][18]

References

  1. ↑ Beckerman, Josh (2015-12-01). "Mattress Firm to Buy Sleepy's for $780 Million". Wall Street Journal. ISSN 0099-9660. Retrieved 2016-05-20.
  2. ↑ Winzelberg, David. "Sleepy's uncovers new Hicksville offices". libn.com. Long Island Business News. Retrieved 21 January 2015.
  3. ↑ Samuels, Michael H. "Sleepy's buys Dial-A-Mattress for $25 million". libn.com. Long Island Business News. Retrieved 21 January 2015.
  4. ↑ Court OKs Sleepy's purchase of Better Bedding. Furniture Today. Retrieved 2014-12-30.
  5. ↑ Mattress retail store Sleepy’s opens in CL. Northwest Herald. Retrieved 2014-12-30.
  6. ↑ "Sleepy's celebrates its 1,000th store". http://www.poughkeepsiejournal.com/. Poughkeepsie Journal. Retrieved 12 February 2015. External link in |website= (help)
  7. ↑ Evans, Katie. "Retail chain Sleepy's launches an e-commerce site at Sleepys.com". https://www.internetretailer.com. internet RETAILER. Retrieved 12 February 2015. External link in |website= (help)
  8. ↑ Beckerman, Josh (2015-12-01). "Mattress Firm to Buy Sleepy's for $780 Million". Wall Street Journal. ISSN 0099-9660. Retrieved 2016-05-20.
  9. ↑ "No Rest For The Weary". courant.com. Hartford Courant. Retrieved 2014-01-06.
  10. ↑ "How to come out on top when buying a mattress". yahoo.com. Yahoo!. Retrieved 2015-01-21.
  11. ↑ Engel, C. (2009, June 8) Sleepy's leads top 100 in growth. Furniture Today, 33(39), 11-14.
  12. ↑ "More than half of companies on Top 100 list are expanding". furnituretoday.com. Clint Engel. Retrieved 20 January 2014.
  13. ↑ Sleepy’s Enters Into Agreement with NJ to Resolve Suit. New Jersey Office of the Attorney General. Retrieved 2014-12-30.
  14. ↑ Sleepy’s Enters Into Agreement with NY to resolve complaints and settle deceptive sales charges. New York City Department of consumer affairs. Retrieved 2014-12-30.
  15. ↑ State of Connecticut Attorney General press release.Retrieved 2014-12-30.
  16. ↑ "Serta, Sleep Number top Consumer Reports mattress ratings". furnituretoday.com. Furniture Today. Retrieved 29 October 2014.
  17. ↑ "The top mattress brands and retailers". consumerreports.org. Consumer Reports. Retrieved 29 October 2014.
  18. ↑ "Mattress buying guide". consumerreports.org. Consumer Reports. Retrieved 29 October 2014.
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