Casper targets traditional retailers to extend reach

Direct-to-consumer mattress brand Casper is expanding its wholesale network through new partnerships with traditional home furnishings retailers to help build out its omnichannel distribution strategy.

Founded in 2014 as an online business, the company started its charge into retail partnerships in 2017 when it struck a deal with Target to sell mattresses there. That was followed by Casper-branded stores when it opened its first physical showroom in 2018.

In 2019, Casper opened its first trade showroom at the Las Vegas Market. It continues to build its field sales team — there are about 20 on staff now — that works with retailers on product and sales training, brand positioning within stores and bundling mattresses with the company’s sleep accessories.

The company, which went public in February 2020, now operates 72 branded stores and is currently in 25 retail stores including Sam’s Club, Costco, Ashley HomeStore, Mathis Brothers and Nordstrom. Casper products are also sold through Amazon.

“As we continue to push out new price points, we will continue to grow our network,” said Emilie Arel, chief commercial officer and president of Casper. “Consumers can come into a Casper store or a retail partner or shop online and experience the brand in different ways. We know that buying a mattress is an experience, and many consumers like to test the product. Through our retail partners, we are meeting consumers where they want to shop.”

Casper is on the prowl for retail partners that are leaders in their markets, destination locations and where consumers love to shop, she said.

With the recent introduction of its Snow line, the company is pushing the product into more retail stores through a select group of partners, including HOM, Sit ‘n Sleep, Nebraska Furniture Mart and City Mattress. Each of the new retail partners are already featuring the Casper mattresses on their websites.

The new mattress lineup expands the company’s offering to seven models and offers technology that Casper says offer a six-degree cooler sleep. The Nova Hybrid Snow is priced to retail at $2,595 in queen, and the Wave Hybrid Snow retails at $3,195 in queen

“We are teaming up with retailers that want to sell sleep,” Arel said, adding that Casper is looking at its geographic footprint. “We are building out state by state, area by area, with partners that understand the importance of sleep. We are focused on expanding our product offering, increasing brand awareness and increasing our points of distribution.”

With the expansion of the new models into select retail partners, Casper can bring its sleep solutions to a larger market. Casper has set pricing across all of its channels of distribution to help level the playing field for retailers selling its products.

In Casper’s first quarter earnings announced in May, the company’s revenue from retail partnerships increased 53.7% to $34.4 million. Arel points to that as proof that the strategy is working for Casper, its retail partners and consumers.

“Buying a mattress is a big decision and isn’t something you do all the time,” she said. “We still see so much of that transaction happening inside a building. Given the past year, sleep and wellness are on the forefront of our minds, and people are prioritizing it.

“Casper was a disrupter in an industry that hadn’t had a disrupter. I’m proud of what we’re doing as a company,” Arel said. “We realize we can’t tell a consumer what to do. They like to shop in a trial environment, and we need to be where the customer is. We are really excited to be strong partners, and we think we can bring a lot of fun, joy and first-class engineering to help sell sleep.”