In the latest wake-up from the bedding industry, Mattress Warehouse—America’s largest independently owned mattress retailer—announced in early May the acquisition of 176 store locations.
The deal includes 73 former Mattress Firm stores and 103 outlets from the Sleep Outfitters chain, along with seven distribution centers and corporate headquarters in Lexington, Kentucky.
The move brings Mattress Warehouse’s total footprint to over 500 stores and extends its reach from New Hampshire to Florida, and westward into key markets including Chicago and Milwaukee. CEO Bill Papettas called the acquisition “a pivotal moment” for the company’s strategic expansion.
The stores were divested by Tempur Sealy International to satisfy regulatory requirements tied to its controversial merger with Mattress Firm, the nation's largest mattress specialty retailer.
Tempur Sealy Overcomes FTC Challenge to Finalize $4B Mattress Firm Acquisition
The Mattress Warehouse acquisition stems directly from a larger industry development: the $4 billion merger of Tempur Sealy International and Mattress Firm.
Initially blocked by the Federal Trade Commission (FTC) in July 2024 over antitrust concerns, the merger was ultimately greenlit by a federal court in Houston earlier this year.
The deal resulted in the creation of Somnigroup International, a new holding company that includes Tempur Sealy, Mattress Firm, and U.K.-based retailer Dreams. To address regulatory concerns, Tempur Sealy agreed to divest roughly 176 stores, ultimately transferring those assets to Mattress Warehouse.
This merger marks one of the most substantial consolidations in the history of the sleep industry and has sparked ongoing debate about consumer choice, market concentration, and price competition.
Purple Innovation Restructures, Explores Strategic Alternatives
Purple Innovation—best known for its GelFlex Grid technology and colorful marketing—has embarked on a restructuring effort of its own. In 2024, the company closed two manufacturing facilities in Utah and centralized production in McDonough, Georgia, aiming to cut $15 to $20 million in annual operating costs.
In March 2025, Purple announced it was evaluating strategic alternatives, including the potential for a sale or merger, following unsolicited interest from other companies.
Soon after, it expanded its commercial relationship with Somnigroup, gaining increased placement in Mattress Firm locations and entering into a strategic supply agreement with Tempur Sherwood, Somnigroup’s manufacturing division.
These moves significantly broaden Purple’s market reach while easing the operational burden of standalone retail expansion—effectively blending direct-to-consumer roots with legacy retail infrastructure.
Denver Mattress Pursues Steady Organic Growth
While consolidation defines much of the industry's current activity, Denver Mattress—a division of Furniture Row—is continuing with more traditional expansion.
The company opened new retail outlets in Parker and Garden City, Colorado, in late 2024. It remains committed to a vertically integrated, factory-direct model, producing mattresses in-house to ensure quality and cost efficiency.
Denver Mattress’s slow and steady growth strategy contrasts sharply with the large-scale restructuring and acquisitions dominating the industry but illustrates that diversified approaches still have a place in the evolving market.
DTC Mattress Boom Cools as Retail Giants Reassert Control
The industry’s current trajectory also reflects the cooling of the direct-to-consumer (DTC) boom that characterized the late 2010s and early 2020s.
Brands like Casper, Tuft & Needle, and Leesa rose to prominence by offering mattresses online with free trials and slick marketing. At its peak, the DTC sector was crowded with over 175 competitors.
However, many of these startups struggled with profitability due to high customer acquisition costs, limited brand differentiation, and logistical inefficiencies. Several have exited the market, merged, or pivoted to wholesale and retail distribution partnerships.
Now, legacy players are reclaiming market share through omnichannel strategies that leverage both online and in-store experiences. Purple’s expanded presence in Mattress Firm stores exemplifies this shift, enabling wider accessibility without the overhead of company-owned retail outlets.
Implications for Retail and Consumers
These sweeping changes in the mattress industry are redefining the retail experience. As fewer, larger players consolidate control, consumers are likely to encounter more standardized product offerings across national chains and broader access to leading brands under a single roof.
While consolidation may yield logistical efficiencies and potentially lower prices, critics warn that reduced competition could narrow consumer choices and erode pricing power over time. Exclusive retail partnerships, like those formed by Purple and Somnigroup, may also limit shelf space for independent or emerging brands.
For consumers, the evolving market means a more streamlined but potentially less diverse shopping experience. For the industry, it marks the end of an era defined by disruptive DTC entrants—and the rise of a new phase led by vertically integrated conglomerates with expansive retail networks.
As the mattress market continues to settle into this consolidated structure, the next few years will test whether these efficiencies can deliver sustained value to consumers—or if the narrowing field of competition will ultimately come at their expense.
