CPSC provides certification guidance and more…

CPSC issues sample certification
The U.S. Consumer Product Safety Commission has issued a sample General Certification of Conformity that manufacturers, private labelers and importers may use to meet the new product certification requirement that took effect Nov. 12. The sample document can be found at www.cpsc.gov/about/cpsia/faq/elecertfaq.pdf.

The new certification requirement is part of the Consumer Product Safety Improvement Act, which President Bush signed into law earlier this year. The act requires that each manufacturer, private labeler and importer of products subject to CPSC safety standards (such as 16 CFR Parts 1632 and 1633 for mattresses) must issue a certificate stating compliance with product safety rules and other information to its distributors or retailers.

Companies are not required to use the sample certification, but it provides direction regarding what information is required and what the CPSC will be looking for when it enforces this new requirement. The online document also includes a “Frequently Asked Questions” section on the certification requirement, which, among other things, states that providing the required information electronically is acceptable. The CPSC also will allow certificates to be made accessible through a Web-based application or other electronic portal.

While the sample form and FAQs provide useful information, it is important to note that these documents were prepared by CPSC staff and have not been formally approved by the three-member commission itself. Therefore they are not official CPSC documents and are subject to change by the commissioners.

For more information about the certification requirements, check the “Advocacy” section of the International Sleep Products Association’s Web site.

Martha Stewart adds The Good Bed to product line
Household maven Martha Stewart has plunged into mattresses, adding her famous name to the category. Her line, Martha Stewart The Good Bed, is a joint effort of New York-based Martha Stewart Living Omnimedia and Columbus, Ohio-based Schottenstein Stores Corp.

The beds are produced at Schottenstein-owned factories in Albany, Ga., and Parkersburg, W. Va. Martha Stewart The Good Bed LLC is managed by Rob Casey, president; Dean Thompson, vice president of marketing; and Bill Bush, vice president of sales. It’s headquartered in High Point, N.C.

The line was introduced in High Point this fall and is being distributed in several areas, including Atlanta, Chicago, Florida, New York state, Philadelphia and Washington, D.C.
“Martha Stewart represents a tremendous opportunity for retailers to expand their traditional market reach with a brand to which many consumers turn when seeking ideas, information and products for their homes,” Casey said.

Stewart was directly involved in the design of the mattresses, as well as the selection of components and materials. Her focus was on the use of authentic materials, sensible design and lasting comfort, according to Casey. Each bed is covered in a woven or knit ticking of 100% cotton. Other materials used in the collection are New Zealand wool, natural latex foam, kiln-dried spruce, memory foam and bio-based foams. Suggested retail prices for queen sizes range from $1,299 to $3,999.

To simplify the selection process for the consumer, Stewart organized the beds into three comfort types: firm, medium firm and plush. The various models, including Heather and Primrose, are named after herbs and plants from Stewart’s gardens. The line is divided into three collections: Classic Living, Innovative Living and Smart Living.

Classic Living features beds made with a proprietary open-coil support system, bio-based foam, latex, memory foam and cotton padding. Innovative Living includes encased coils with memory foam. Smart Living mattresses, starting at $699 for a 10-inch encased coil model, are compressed and boxed, enabling consumers to have them delivered to their front door by courier or wheel them out of the store themselves.

Duties set for some imported springs
The U.S. Department of Commerce has issued a final determination that innersprings imported from Vietnam and South Africa are being sold into the U.S. market at less than value and has set a duty deposit rate of 116.31% for Vietnam and 121.39% for South Africa. The ruling applies only to units used in mattresses.

At press time, the Department of Commerce had not announced a final determination on innersprings imported from China, which also were included in the anti-dumping investigation.

Innerspring and components supplier Leggett & Platt, based in Carthage, Mo., filed the original petition requesting an anti-dumping investigation.

The International Trade Commission also has been investigating and has held hearings to determine whether innerspring imports from China, South Africa and Vietnam are materially injuring the U.S. innerspring manufacturing industry. It was scheduled to hold a final vote on the matter Nov. 14.

1800mattress.com plans 40-store expansion
Retailer 1800mattress.com plans to open 40 retail showrooms over the next 18 months as it extends its reach into the District of Columbia and the Maryland and Virginia suburbs.
Leading the expansion project is Ken Mazda, who recently was hired as vice president of business development, specializing in new markets. Mazda reports to Joe Vicens, 1800mattress.com executive vice president of national sales.

The company already operates three retail showrooms and a warehouse in the region and has signed leases to open five stores by the end of 2008. The retail chain, based in Long Island City, N.Y., has a multichannel strategy of selling over the telephone, through the Internet and in stores.

“The mattress retailing dynamics of the Washington market, particularly in some of its Maryland and northern Virginia suburbs, are changing dramatically, and there is an exciting opportunity for us to expand market share in a smart way,” Mazda said.

Tempur-Pedic’s sales fall 14% in third quarter
Lexington, Ky.-based bedding producer Tempur-Pedic International reported that net sales declined 14% to $252.8 million in the third quarter of 2008, from $294.1 million recorded in the same period last year.

Net sales in the domestic segment fell 17% for the third quarter; net sales for the international segment dropped 7%. On a constant currency basis, international segment net sales decreased 13%.

The company reported third-quarter net income of $24.1 million, compared to $38.8 million during the same period in 2007.

Operating profit margin was 17% for the third quarter, down from 23% in the third quarter of 2007. According to the company, the decline resulted from gross profit margin declines partially offset by reductions in operating expenses.

Tempur-Pedic said that as a result of its focus on improving working capital, operating cash flow increased 30% to $72.6 million in the third quarter, from $55.7 million in the same period a year before. The company reduced inventories by $23.8 million to $69.7 million during the third quarter and reduced total debt by $37.8 million to $518.8 million.

“During the third quarter, we executed well,” said Mark Sarvary, Tempur-Pedic chief executive officer. “The economic climate worsened, and we responded quickly to improve earnings. We reduced our operating expenses and improved our balance sheet by substantially reducing debt.”

Sarvary said Tempur-Pedic is facing “the most challenging economic environment in memory” and added that he does not expect the economic climate to recover in the short term.

To ensure financial flexibility, Tempur-Pedic has initiated several steps, including a $140 million repatriation of foreign earnings and a suspension of its cash dividend, with those funds redirected to reduce debt. The company will continue to reduce capital expenditures, drive working capital efficiencies and minimize discretionary spending, Sarvary said.

The company has revised its financial guidance for net sales and earnings per share for 2008 because of its belief that fourth quarter sales will fall below prior expectations. It expects net sales for the year to range from $930 million to $950 million.

L&P’s sales rise 3.7%; earnings fall 50%
Components supplier Leggett & Platt reported that third-quarter sales from continuing operations were $1.13 billion, a 3.7% increase over the same period in 2007. However, net earnings for the quarter decreased 50% from the same period in 2007. Same-location sales for the Carthage, Mo.-based company improved 4.3%, as price inflation and market share gains offset soft market demand and the company’s decision to exit specific sales volume that had unacceptable profit margins.

Net cash from operating activity for the third quarter was $76.6 million, down from $194.2 million during the same period in 2007, a 61% decrease. Cash flow from the company’s divestiture program provided $388 million of after-tax proceeds, while cash flow from operations provided $77 million.

During the quarter, L&P used $141 million to purchase its stock, reduced debt by $223 million, increased working capital by $60 million, paid $42 million in dividends and funded $26 million of capital expenditures.

“We made significant progress in the third quarter relative to our previously announced strategic plan,” said David S. Haffner, L&P president and chief executive officer. “We completed the sale of four business units for $388 million in after-tax cash proceeds, reached a decision regarding our Store Fixtures business unit, set a new record for the amount of stock repurchased in a single quarter and spent much of September reviewing each business unit’s strategic plans.”

He added: “We continue to successfully pass along higher raw material costs and to gain market share as bedding manufacturers reduce their use of imported innerspring components.”

(The U.S. Department of Commerce recently issued its final determination that innersprings imported from Vietnam and South Africa are being sold into the U.S. market at less than value. The duty deposit rate has been set at 116.31% for Vietnam and 121.39% for South Africa. The initial request for an anti-dumping determination was made by L&P.)

Total sales from continuing operations for the third quarter in the residential furnishings division, including bedding components, were $580 million, an increase of $12.8 million or 2.3% over total sales of $567.2 million during the same period in 2007. Improved market share and inflation-related price increases largely offset the weak market demand experienced in many parts of the segment, according to L&P.

The company’s fourth-quarter forecast anticipates weak market demand overall and $12 million of LIFO expense. Sales for the fourth quarter are expected to be approximately $200 million lower than in the third quarter.

Overall sales for 2008 from continuing operations are projected to be $4.1 billion, about 3% lower than 2007 sales. The figure reflects steel-related price inflation, weak fourth-quarter market demand and the deliberate elimination of approximately $100 million of unprofitable revenue earlier this year from the company’s Store Fixtures business.

Carpenter offers recyclable Renew T foam
Richmond, Va.-based components supplier Carpenter Co. has launched its Renew T brand of foam cushioning. Renew T is designed to be fully recyclable and is available in a range of firmnesses and densities. The product uses BiOH polyols—engineered to help foam manufacturers reduce their environmental footprint—from Minneapolis-based Cargill.

“We are already selling Renew foam to major names in the furniture industry and we are beginning to work with bedding manufacturers, as well,” said Stan Yukevich, Carpenter president.

Cargill has made significant investments in BiOH polyols technology in the past 18 months. Last year, the company opened a $5.5 million polyols research-and-development lab. The company also has been constructing a $22 million BiOH polyol plant in Chicago to meet expected demand. It was scheduled to open in November.

Select Comfort sees sales fall 26%
Select Comfort, a Minneapolis-based airbed producer and retailer, reported net sales of $157.2 million for the third quarter, a decrease of 26% from $213.1 million during the same period in 2007. The company reported third-quarter net income of $1 million compared to $11.9 million during the same period last year.

“Following a difficult first half and continued declining revenue, we achieved a significant goal during the third quarter by returning to profitability,” said Bill McLaughlin, Select Comfort chief executive officer. “During the quarter, we took aggressive action to reduce costs, improve operating efficiencies and preserve cash, while selectively investing in those initiatives that will help improve business results.”

McLaughlin said the company has been proactive and aggressive in reducing costs and protecting margins and will remain focused on improving the company’s cost structure while following programs designed to stabilize sales and market share.

Retail revenue during the third quarter was down 24%, driven by a 27% decline in same-store sales but offset by the opening of four net new stores during the past 12 months. During the third quarter, the company closed eight stores. Third quarter e-commerce sales dipped 42%, direct-marketing sales declined 20% and wholesale sales were 37% lower than during the same period in 2007.

The company reported an improved gross margin during the third quarter: 62.2% compared to 61.6% in 2007 and up from 59.6% in the second quarter of 2008. The company attributed this to select price increases and cost-reduction activities, along with a strong average unit selling price and improved sales mix.

McLaughlin said he expects “difficult conditions to persist for the remainder of the year and through 2009, as the economy and consumer buying continue to weaken.”

Select Comfort said it will focus on reducing product costs and creating price flexibility within its product line to respond better to price-conscious consumers. The company will close five stores during the fourth quarter, bringing the total of closings to 26 for the year. Another 20 stores will be closed in the first quarter of 2009.

The company also will cut back on media expenditures in the fourth quarter and keep plans flexible in 2009.

“Despite the difficulties of the past year and the uncertainty of the year ahead, our core value proposition continues to be our high-quality products that provide real benefit for the consumer,” McLaughlin said.

Sealy opens new Toronto facility
Bedding maker Sealy has opened a 130,000-square-foot plant in the Toronto suburb of Scarborough.

The leased factory, built specifically for Sealy, was designed to handle the company’s sales growth in Canada and to improve service to retail customers there. The building is more than 50% larger than Sealy’s previous plant in the area and has an improved 5,000-square-foot combination showroom and training area for retail sales associate education.

The plant employs 127 factory workers and 37 office and sales associates.

“The new Toronto facility shows that Sealy continues to invest in our Canadian business and support its growth,” said Larry Rogers, president and chief executive officer of Sealy, which has headquarters in Archdale, N.C. “Sealy Canada has always performed well and is an important part of our overall business. We will continue to invest the resources to foster its growth.”

Selectfoam.com adds Web site, store
Selectfoam.com, an Internet retailer of eco-friendly mattresses, has added a Spanish-language Web site, esp.selectfoam.com, to serve Hispanic consumers.

The company’s co-owners, Matt Byrd and Chris Nelson, both currently students at the University of Miami, formed the company to cater to consumers seeking an environmentally friendly lifestyle.

Their beds, marketed under the Green Select name, originate from several “green”-oriented mattress manufacturers, including Cambridge, Ontario-based Natura World, according to Byrd.

“Living an eco-friendly lifestyle shouldn’t have any boundaries,” Byrd said.

The company was scheduled to have its first retail store open in November in Cambridge, Ohio, under the Ohio Specialty Sleep Store name.

The store, which the owners hope will be a shopping destination, will be comprised of several log cabins, each housing a particular mattress category, such as air, water, foam and innerspring.

LMG offers program for new CPSC rule
Lilly Management Group, a consultancy based in St. Charles, Ill., offers a certificate of compliance program for mattress producers to comply with the Consumer Product Safety Improvement Act, which President Bush signed into law earlier this year.

The act requires that each manufacturer, private labeler and importer of products subject to U.S. Consumer Product Safety Commission standards (such as 16 CFR Parts 1632 and 1633 for mattresses) must issue a certificate stating compliance with product safety rules and other information to its distributors or retailers.

LMG’s FR/PRO Certificate of Compliance Program provides manufacturers with electronic or paper certification forms for reporting correct compliance information. The program also includes LMG guidance and support for participating factories.
The program can be used on a permanent basis or implemented short-term while a manufacturer develops its own system.

Otis Bed re-engineers, renames line
Mattress and futon producer Otis Bed Mfg., headquartered in Buffalo, N.Y., has re-engineered the therapeutic bed it launched earlier this year and given it a new name.

The iForm mattress line, previously called TheraCoil, features a patented Telescoping Support Technology system with hundreds of individualized zones that interact with the body and are designed to deliver customized support. Each plastic-encased spring unit can be adjusted or rearranged for best fit.

For its inaugural model, Bright Mornings, Otis has replaced the polyurethane foam top layer with 31/2 inches of Celsion temperature-regulating latex from Latex International in Shelton, Conn., and now is using a temperature-regulating ticking incorporating BodyClimate technology from Lawrence, Mass.-based Polartec.

A zippered cover allows the consumer to replace foam or other components as the bed ages.

Sealy opens pressure mapping lab
Bedding producer Sealy has unveiled its Dr. Robert G. and Beverly Addison Center of Excellence pressure mapping laboratory. The research center, located on the Sealy corporate campus in Archdale, N.C., uses a variety of high-tech methods for identifying uncomfortable pressure points that lead to tossing and turning.

“Pressure management is one of the focal points of Sealy’s product development process,” said Larry Rogers, Sealy president and chief executive officer. “The Center of Excellence will provide crucial insight into developing cutting-edge sleep systems that help consumers maximize every minute of sleep.”

The Oct. 10 inauguration of the 836-square-foot building included several members of Sealy’s Orthopedic Advisory Board, a group of orthopedic surgeons, researchers and clinicians Sealy formed in 2006 to provide a professional perspective on sleep. The center contains four work stations, each configured to identify and measure uncomfortable pressure points. The lab also can monitor the movement of a sleeping person.

“Our pressure mapping technique lets us develop a new methodology that quantifies sleep quality, directly linking it to specific sleep surfaces,” said Alan Letton, Sealy chief science officer.

Dr. Addison is an honorary member of the advisory board. He is known for his work with Sealy in the 1950s that recognized that heavy stress is placed on the lumbar region of the back during sleep. The discovery shifted Sealy’s product development efforts to address back support.

Sleepy’s battles evil, raises money
Bethpage, N.Y.-based mattress retailer Sleepy’s has launched an exclusive Marvel Comics book as a fund-raiser for the American Cancer Society. The comic is available for $3 at any of the retailer’s 700 stores throughout the Northeast. All proceeds are being donated to the cancer society.

The comic was created as a partnership that began with the Universal Studios action movie The Incredible Hulk. The comic features The Hulk, Iron Man and the illustrated Sleepy’s man in his red, white and blue sleeping attire, as they battle evil in the name of providing a good night’s sleep.

“We are excited to partner with Universal Studios and Marvel Entertainment on this new charitable project,” said Adina Smith, Sleepy’s vice president of advertising and brand management. “Sleepy’s is a supporter of the American Cancer Society’s ‘Making Strides Against Breast Cancer’ walks.” Smith said the retailer expected the buzz around The Incredible Hulk DVD release on Oct. 21 to raise even more money.

The following Sleepy’s vendors contributed advertisements, helping to fund the comic book: Comfort Solutions in Willowbrook, Ill.; Kingsdown Inc. in Mebane, N.C.; Miralux by International Bedding Corp. in Fort Lauderdale, Fla.; and Simmons   in Atlanta.

Damaged Verlo store helping hurricane victims
The Verlo Mattress Factory Stores franchise in Beaumont, Texas, is helping victims of Hurricane Ike by making a donation to the Southeast Texas Food Bank for every mattress it sells. Verlo is a factory-direct mattress retail chain based in Fort Atkinson, Wis.

The Beaumont franchise, which suffered some damage itself when the storm struck in early September, received help from Verlo’s Greenfield, Wis., store and from VyMaC Corp., the supplier arm of Verlo. The Greenfield store sent a 50-foot trailer of finished mattresses and VyMaC provided mattress components and materials at prices that allowed the Beaumont store to extend savings to consumers.

“We have many individuals who are in need of mattresses. With the generosity of our home office, our supplier and our franchise counterparts, we are able to deliver on our promises to the community,” said Eric Lawrence, Beaumont franchise store owner. “Because of this unified effort, we will be able to offer special pricing and special products to assist individuals in need of new beds.”

GREEN IDEA
Natura World reorganizes line for clarity
Bedding producer Natura World has reconfigured its mattresses into five classifications to reflect the broader mix of “green” bedding it now offers. Based on the construction and the amount of natural product in each mattress, the beds are organized into Green, Ultra Green, Mixed Greens, Natural and Organic collections.

The company also has begun categorizing each model by measuring the amount of natural content it contains so a consumer can better understand its construction. A Natura Green bed, for example, is 60% natural, while an Organic bed is more than 99% natural. The readings will be posted on the Natura Web site and on point-of-purchase materials to make them easily accessible to consumers.

Natura is making these changes to help clear up confusion about green-oriented constructions and terms, according to Ralph Rossdeutscher, president of the company, which has headquarters in Cambridge, Ontario.

In addition, Natura has expanded its Natura Kidz collection to include an organic, 100% natural latex bed with organic cotton ticking and two new beds with bio-based polyurethane foam. A new accessory for adults is the Re-Groove N8 bathrobe made from a cotton and bamboo fabric.

SHORTS
New exporting guide ready
The U.S. Commerce Department is offering an updated Basic Guide to Exporting, a step-by-step manual that covers various topics, including how to identify the best overseas markets and financing options and how to create a Web site for selling goods to international buyers. The book contains 17 chapters on the nuts and bolts of the export process, as well as case studies in which companies share how they’ve profited from international sales. Copies are available at bookstores and can be ordered at Export.gov.

Ohio recycler opens
Ohio Mattress Recovery in Willoughby, Ohio, began accepting used mattresses for dismantling and recycling of used components on Nov. 1. Mattress manufacturers are urged to encourage their Cleveland-area retailers that collect used mattresses to consider using the facility.

Eco-friendly partnership
Koni Corp. and KOJO Worldwide, both San Diego-based suppliers of soft goods, have established a partnership with Lenzing Fibers Inc. to develop eco-friendly sheets, top-of-bed products, towels, robes and decorative items for the hospitality industry. Lenzing Fibers is based in Lenzing, Austria. Koni and KOJO make products with organic cotton, bamboo and recycled polyester, but the Lenzing arrangement will allow them to make products from Lenzing Modal and TENCEL fibers, as well. Those fibers are derived from wood pulp cellulose extracted from trees harvested in sustainable forests, making them 100% natural and biodegradable.

KD Bedding adds steel base
KD Bedding, a High Point, N.C.-based manufacturer of EZ Sleep boxed mattresses and foundations, has introduced the Chinese-made Duraplus foldable steel bed base. The unit requires no assembly and can be shipped via overnight carrier to consumers and retailers. The Duraplus, with a suggested retail price under $200, has been designed to accommodate a wide range of mattresses.

NSF buys Big Sleep Show
The National Sleep Foundation has acquired The Big Sleep Show, a consumer health event devoted to sleep and alertness. The show debuted last year in Chicago, attracting some 45,000 attendees. Next year’s event will be at Chicago’s Navy Pier March 21-22. “Our Big Sleep Show will provide an ideal forum for consumers, health care providers and manufacturers to share information about the role of good sleep and alertness for better health, safety, productivity and wellness,” said David Cloud, National Sleep Foundation chief executive officer.

Hollandia hotel premiere
The Westminster Hotel, a four-diamond luxury resort in Livingston, N.J., celebrated the placement of Hollandia Morpheus latex beds in every room of the hotel with a gala in October. Party guests had a chance to win a Hollandia Morpheus bed. Hollandia, a manufacturer based in Sederot, Israel, placed its complete, adjustable Platinum-Luxe Signature Sleep System in the hotel’s 10 suites.

Stylution adds boxed line
Stylution adds boxed line Stylution USA, a Lake Zurich, Ill.-based bedding and furniture importer, has launched its first line of compressed and boxed mattresses. The mattresses, part of the Body Comforts collection, are constructed of memory foam and minipocketed coil springs. A collapsible, flat-pack, all-metal box spring and foundation also is available. The boxed products are imported from Stylution’s headquarters in Dongguan City, China. The set starts at a suggested retail price of $999 and the collapsible box spring can be paired with mattresses in other Stylution collections, according to Ed Scott, Stylution USA president and chief executive officer.