Sleep Country (TSX:ZZZ) is Canada’s leading omni-channel specialty sleep retailer with a national brick-and-mortar footprint and robust e-commerce platforms dedicated to supporting the health and wellbeing of Canadians.
Sleep Country maintains a leading position through key success factors, which include a highly differentiated service and operating model that serves as a competitive advantage. Management adds strategic layers to this successful model across infrastructure, channel, partnership, and experience in order to predict and serve Canadians’ sleep needs.
Strong brand recognition
The company’s brands have strong recognition in the Canadian marketplace. The company continues to invest in marketing and brand development to create significant brand awareness, which has provided it with a significant competitive advantage in the sleep industry.
Strategic store locations
The company owns 280 stores and 17 distribution centres across Canada. Sleep Country continues to expand the company’s store network to reach new customers, both in existing and new markets. Stores are, on average, approximately 5,000 square feet, providing the company with the optimal space to maximize product displays and return per square foot rented. These stores are located in convenient locations, making it easy for customers to visit a store.
Stores are strategically located in each regional market close to residential areas, in high-traffic, highly visible locations with prominent signage and convenient access. Even with growing sales from the company’s e-commerce platforms, the majority of sales are repeatedly generated at the company’s store locations. While customers may research mattresses online, the majority of customers continue to visit the company’s retail stores to make a purchase.
Robust e-commerce platforms
The company continues to grow and optimize Sleep Country’s e-commerce platforms through continued investment in the company’s websites. Sleep Country continues to invest in digital capabilities to seamlessly link the physical and digital shopping experiences. These investments enable the company to evolve alongside consumers and holistically serve the sleep needs of Canadians across channels and brands.
To support the growth of Sleep Country’s e-commerce sales as well as provide customers with a truly omni-channel experience, the company created an exclusive online sleep experts team to service valued customers. Customers are able to get live support with the company’s sleep experts through a dedicated phone line or live chat available on the company’s e-commerce platforms.
Leading sleep products
The company offers customers a superior and extensive assortment of mattresses and accessories, including a wide range of brands, comfort choices, styles, sizes, and price points in order to meet customers’ sleep needs. One of the company’s goals is to build market share of Sleep Country’s banners and to grow revenue by strategically continuing to expand Sleep Country’s product assortment in the sleep ecosystem.
Over the last few years, the company has continued to drive significant growth through launching exciting new products, brands, and categories such as cushions, throws, duvets, pillows, and pet beds. The company has expanded Sleep Country’s product assortment through in-house innovations and exclusive strategic partnerships with the world’s most innovative sleep brands. These partnerships should lead to a higher stock price and allow Sleep Country to serve as the exclusive Canadian retailer of premier international sleep brands.
If you enjoyed this article, click the link below for top market insight delivered directly to your inbox!
Renowned Canadian investor Iain Butler just named 10 stocks for Canadians to buy TODAY. So if you’re tired of reading about other people getting rich in the stock market, this might be a good day for you.
Because Motley Fool Canada is offering a full 65% off the list price of their top stock-picking service, plus a complete membership fee back guarantee on what you pay for the service. Simply click here to discover how you can take advantage of this.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Nikhil Kumar has no position in any of the stocks mentioned.