Mattress retailer Casper to open 200 stores
Mattress retailer Casper plans to open 200 brick-and-mortar store locations as it expands beyond its digital-only roots, even as one traditional retailer reportedly mulls bankruptcy in a bid to escape expensive leases.
The new stores will include 18 “pop-up” locations that will become permanent. Casper told the Wall Street Journal that its test locations generate an average of more than $1,500 in sales per square foot, adding that it is targeting top-tier malls to house its new stores.
Casper has relied primarily on direct-to-consumer sales through its website since it launched in 2014. The company sells three mattress models that range in price from $350 to $1,095, as well as other bedding supplies such as pillows and bed frames. Mattresses purchased online are shipped to customers in a box.
Casper has raised about $240 million in private funding since 2013, according to CrunchBase. While Casper does not disclose annual revenue, the company said in a press release last January that it had generated more than $600 million in revenue to that point.
The company competes with other online retailers such as Leesa Mattresses for market share, as well as traditional mattress retailers such as Tempur Sealy International.
While Casper plans an expansion into traditional retail, Reuters reported earlier this week that competitor Mattress Firm is considering bankruptcy as a way to shutter underperforming locations and cut down on existing leases.
Mattress Firm has declined to comment on the report.
Traditional retailers have struggled to maintain sales and foot traffic at stores as more consumers turn to digital options. U.S. store closures are expected to increase 33% to more than 12,000 locations this year, according to data from Cushman & Wakefield.