Stores may be the spring Saatva Inc. needs to propel it to the top of the online mattress industry.
The mattress manufacturer, which until now has only sold directly to consumers via the web, plans to open a showroom in New York City by Black Friday as a first step to opening bricks-and-mortar locations. Saatva plans to have a dozen or more stores in major markets in the next 24 months and up to 20 stores within a few years after that, Joshi says.
Saatva launched its ecommerce site in 2013 and ranks No. 163 in the Internet Retailer 2019 Top 1000. Its 2018 web sales grew 25.0% year over year, and its five-year web sales compound annual growth rate is an impressive 100.7%, according to Digital Commerce 360 Research (formerly Internet Retailer Research). The median CAGR for Top 1000 retailers was 18.3%. Plus, among the 14 mattress brands Digital Commerce 360 tracks in its Top 1000 database, Saatva is the second largest in terms of 2018 web sales, behind Casper.com.
Although it’s among the top online mattress brands, Saatva knows that a large majority of online mattress sales occur offline. And it wants in on this action, says Ricky Joshi, co-founder and chief strategy officer.
The two main goals for its stores are to generate sales and raise awareness of the brand as a way to boost online sales, Joshi says. The retailer is aiming for a double-digit percentage lift in online traffic, sales and conversion on Saatva.com from areas around its stores.
Ricky Joshi, co-founder and chief strategy officer
“We think ecommerce is always going to be our No. 1 driver, Joshi says. But he adds that having a store in a major market can boost online traffic and sales.
“There’s a percent of shoppers who want to feel and touch a product; if we can provide that experience …this will add and augment our penetration into that local market,” Joshi says.
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