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Sleep Country opens DC

 6 October 2017     HGO Staff 

BRAMPTON, Ontario – Sleep Country Canada Holdings (SCC), parent to this country’s largest mattress retailer, has opened is new distribution centre and head office facility here in this Toronto suburb, noting it is “designed to help fuel the next phase of the company’s aggressive growth plans.”

When it returned to the public equity markets in the spring of 2015, SCC told investors it could add between 50 and 70 new stores to its network over the following five to seven years – essentially ten stores a year – while driving annual same store sales growth of between 3% and 6%. This would also see total revenue grow from the $406 million for the 12-month period ended March 31, 2015 to between $575 million and $640 million annually.

Sleep Country Canada’s new distribution centre, seen here in an artist’s rendering, opened in the Toronto-suburb of Brampton last week. In a statement, the company noted the new 140,000 square foot Brampton facility offers 76% more cubic space than the current location, which will give the GTA region much more capacity to support its growth plans for years to come. It will allow Sleep County to accommodate future store openings, support growth in new categories such as lifestyle bases and accessories.

“Our new facility reflects Sleep Country’s business growth and strength as market leader, as well as an investment in our company's culture. We are committed to fostering internal growth and this space will help our amazing teams continue to innovate our brick and mortar stores and grow our exciting new e-commerce business,” SCC chief executive officer Dave Friesema said.

With the continued success of Sleep Country's ever growing 244 store base coupled with the new e-commerce platform necessitated the move to a larger space.

Along with the state-of-the-art distribution centre, the new facility will house an open-concept head office space for over 165 employees. The new office which encourages cross functional collaboration, will feature many aspects of Sleep Country's new open-concept store design, and will include meeting areas throughout, state of the art audio-visual capabilities, and a dedicated area for photo shoots.

The company’s investment into an improved space at head office will promote creativity and continue to strengthen its award winning company culture.

SCC maintains it has the biggest retail mattress market share in Canada – at over 25% – and has become a player in the growing online mattress business, with the launch of Bloom, their own mattress in a box.

“While the addition of an e-commerce platform is exciting, the company recognises that mattresses are tactile and online shoppers still want to visit retail stores to try their mattress out before making a purchase,” its statement said. “Bloom customers are able to test out the mattress at any one of Sleep Country’s convenient locations across the country before purchasing.”

After 22 years in its original distribution centre – which supported unrivaled business growth in the GTA – Sleep Country's move to an enhanced facility reflects the company's impressive run of success.

For the trailing 12 months ending June 30, 2017, Sleep Country Canada had total revenue of $553.6 million, 13.2% higher than the previous 12 months. The second quarter of 2017 also marked Sleep Country's 16th consecutive quarter of same store sales growth, with revenue increasing 10.7% to $133.0 million, up from $120.2 million in Q2 2016.

During that period, SCC also relocated two of its distribution centres into one centralised location in Richmond, British Columba while relocating and enlarging its distribution centre in Calgary.

Related Story: SCC reports Q2 sales gain
Related Story: SCC launches Bloom and unveils e-commerce platform


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