Economic Challenges – Live Laugh Love Do

Mattress company closes factory after buying 132-year-old rival

admin — Thu, 25 Sep 2025 00:33:59 +0000

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The U.S. mattress and bedding sector has faced economic challenges over the last two years as sales have declined in the industry.

The mattress and stationary foundation market in 2024 declined 7.7% in sales to $9.2 billion for the year, and dropped 8.8% in units sold to about 36.5 million units, compared to the previous year, according to the International Sleep Products Association., Furniture Today reported.

The mattress and bedding downturn carried over into 2025 as sales for the first quarter of 2025 declined by 5.7%, totaling $2.4 billion, compared to $2.5 billion in the same period in 2024.

Total units sold in the first quarter also fell by 11.2% year-over-year to 8.7 million units compared to 9.7 units in 2024.

Sales for the second quarter of 2025 declined 4.3% in dollar value and 7% in unit volume, BedTimes reported on Sept. 5.

Mattress industry sales decline:

Second Quarter 2025 sales: 4.3% decline.
First Quarter 2025 sales: $2.4 billion, 5.7% decline.
2024 annual sales: $9.2 billion, 7.7% decline.

Major mattress companies have been proactive in streamlining operations in response to economic issues to cut expenses and avoid any serious consequences, such as bankruptcy.

The mattress industry’s second-largest company Serta Simmons Bedding told its employees on Sept. 4 that it is closing down its Falconer, N.Y., manufacturing facility by Oct. 31 and laying off 84 workers, WRFA-FM radio reported.

Serta Simmons closed 8 factories

The Falconer factory closing will be Serta Simmons’ eighth factory closing since 2022.

The Doraville, Ga.-based mattress manufacturer and distributor also revealed in June that it would shut down its Moreno Valley, Calif., factory and lay off 180 workers by Sept. 30.

Serta and Simmons became jointly owned in 2010 and merged into one company in 2016.

Another nationwide mattress manufacturer is also shutting down a factory to eliminate an unnecessary facility.

3Z Brands closes an Oregon factory as part of a strategic consolidation. .

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3Z Brands shuts down Oregon factory

Major mattress manufacturer 3Z Brands will close its Tualatin, Ore., factory at the end of October as part of a consolidation of operations following its purchase of iconic mattress maker Southerland in December 2024, Furniture Today reported.

3Z Brands, based in Glendale, Ariz., has not revealed the number of employees that it will lay off at the Tualatin manufacturing facility, but the company has said that fewer than 30 employees will be affected.

Closing is part of a strategic consolidation

The 75,000 square-foot factory’s closing is part of 3Z’s strategic consolidation, which will include an expansion of its Phoenix facilities to almost 1 million square feet of manufacturing space.

The Oregon factory had been purchased by Southerland in 2018 from a regional, family-run mattress company, Tualatin Sleep Products.

3Z Brands last year acquired Southerland and its four production and distribution facilities in Tennessee, Phoenix, Oklahoma, and Oregon.

“The acquisition of Southerland enables the strategic expansion of our nationwide manufacturing footprint, positioning 3Z to serve a new group of wholesale customers from a geographic perspective while also reducing delivery costs and timelines for our e-commerce customers,” 3Z CEO John Merwin said in a statement.

3Z’s sleep brands:

Southerland
Helix
Brooklyn Bedding
Leesa
Birch
Bear
Nolah

The acquisition allowed 3Z Brands to expand its nationwide manufacturing footprint to a new group of wholesale customers and reduce delivery costs and timelines for its e-commerce customers, according to a statement at the time.

More closings:

Southerland, which was established in 1893, produced its mattresses for brick-and-mortar retailers in 43 states, which 3Z has continued.

3Z operates manufacturing facilities in Tennessee, Oklahoma, and two in Phoenix.

In addition to the Southerland brand, the Phoenix-based company produces a portfolio of sleep brands, including Helix, Brooklyn Bedding, Leesa, Birch, Bear, and Nolah.

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Dollar Tree Drops Family Dollar: End of Budget Chain Era?

admin — Tue, 08 Jul 2025 23:04:50 +0000

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Dollar Tree is officially cutting ties with Family Dollar in a $1 billion sale, closing hundreds of locations and offloading the rest. Family Dollar was acquired by its discount competitor in 2015 for $9 billion, resulting in a significant loss for Dollar Tree, according to CNN.

Neil Saunders, an analyst at GlobalData Retail, said this sale “closes the book on a sad and troubled chapter for Dollar Tree.”

The budget retail chains sinking—and the ones surging

Once considered a powerful one-two punch in the discount retail space, the breakup raises a bigger question: Are massive budget chains losing their grip? The answer is complex, as an uncertain economy pushes consumers toward budget-friendly brands. But competition is steep, and some dollar stores struggle to meet demand.

In April 2024, Family Dollar announced the closure of almost 1,000 stores, and 99 Cents Only filed for bankruptcy and confirmed it would be going out of business, per CNN.

According to Marketplace, Dollar General has seen a dramatic drop in traffic this year. Dollar General CEO Todd Vasos explained that low-income households are short on cash. And shoplifting, often due to financial hardships, has increased, further hurting the budget retail chain.

On the other hand, according to AInvest, Five Below is thriving. In Q1 2025, the store reported a 19.5% revenue surge. Despite inflation and looming tariffs, the brand still keeps most products at or under $5, offering customers consistency in a volatile economic climate. It’s able to do this thanks to stable sourcing partnerships in India and Vietnam.

Can dollar stores keep up with online giants?

In September 2024, the Financial Times reported that Walmart was outpacing budget chains like Dollar General and Dollar Tree. The dollar store industry is also competing with affordable online retailers, such as Temu and DHgate.

Amazon is coming for the dollar store industry too. As the online retailer expands its delivery range, it’s snapping up consumers in rural areas who typically rely on Dollar Tree and the like, per Motley Fool. Free same-day and next-day delivery is hard to resist, even for loyal dollar store customers.

In the back half of 2024, dollar stores were on the downturn. But with whiplash tariffs and inflation, they’re seeing both positive and negative signs. Consumers are looking to spend as little as possible on basic necessities; retail chains must maintain low prices amid unstable tariffs. Why are brands like Five Below flourishing, while others, such as Dollar General, are struggling?

Strategy is everything

It all comes down to strategic planning, a skill that companies like Walmart and Amazon have mastered. This could be a big moment for dollar stores—if they strategize wisely. Stores that choose to absorb tariff costs will stay competitive, but must navigate their already thin margins.

The industry is currently a rollercoaster ride, but brands like Five Below prove that delivering consistency keeps customers loyal. Stores that want to survive the tariff swings can take a page from their book, finding ways to stabilize product sourcing and maintain low prices.

Dollar Tree is making survival moves too. Shedding Family Dollar and varying product offerings to include more domestically sourced goods is helping the budget store stay afloat.

In this highly competitive budget retail landscape, the companies that emerge as leaders will be those capable of quick and clever adaptability, whether that means closing a horde of stores or rethinking product sourcing.

Photo by Findaview/Shutterstock

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Here’s how back-to-school shopping might save the economy

admin — Thu, 26 Jun 2025 14:17:45 +0000

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As kids, most of us had a love-hate relationship with back-to-school shopping.

Many remember the excitement of trading their old backpack for a cool new one so they could show off to friends at school. Of course, a matching pencil bag and notebooks with fun designs were also a priority.

Planning that first-day-of-school outfit also required strategic thinking, since it would be the first impression everyone would get of us after a long summer break.

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The stakes were high — if the outfit or school supplies turned out to be a flop, you risked not fitting in with the cool crowd or getting roasted by other classmates.

Returning to school meant reuniting with friends and discovering if you had fun teachers. However, the dread of going back to doing piles of homework and reading useless novels is something many would rather not relive.

Lately, the uncertain state of the economy has put many parents in a more challenging position, leading them to cut back on unnecessary spending to prioritize more critical necessities.

So what does this mean for back-to-school purchases?

Back-to-school shopping continues despite economic challenges.

Image source: Shutterstock

Back-to-school shopping faces economic pressures

Money has been tight for many, leading some to postpone their yearly family vacations until further notice.

Yet despite looming tariffs that threaten price increases and supply-chain headaches, retailers are doing everything in their power to provide value to consumers so they can also profit from the seasonal spending.

For example, major retail chains like Target (TGT) and Walmart (WMT) have launched summer sales events promoting lower prices on back-to-school products.

Back-to-school shopping proceeds as usual

Despite it all, nearly three-fourths of consumers expect to spend the same or more on back-to-school shopping this year, with more than one in three anticipating spending more than they did last year, according to PwC’s latest consumer survey.

Technology is a priority for this year’s school supplies list. One quarter of parents plan to spend more than $500, considering that technology is usually pricier than notebooks or pencils.

More Retail News:

However, consumers are not shopping indiscriminately. Many value-conscious parents will cut back on some categories, with 37% reporting only purchasing items on sale.

“A lot of it is necessities,” said PWC U.S. Retail Lender Kelly Pedersen. “This is just necessary spend every year.”

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