Smart beds under $1K? Sleep Number is ramping up to deliver just that

MINNEAPOLIS – Consumer spending is down, and Sleep Number – which typically deals in the high-middle to upper-end of the bedding segment – is jumping into the under $1,000 smart bed category with a new bed set for debut in the third quarter to help boost sales.

Sleep Number’s c1 bed is designed to retail at $999 in queen every day. The company announced the new product during its recent first quarter earnings call. Shelly Ibach, president and CEO, called the bed a “value-engineered innovation” that the company developed in a “short period of time.”

The move comes while business is soft, but also as more bedding players get into the smart bed category spurring more competition. Diamond Mattress introduced its Auto Pilot system this year; and King Koil recently updated its Smartlife platform. Kingsdown also has its Sleep Smart mattress.

“We like the opening price point for a smart bed with adjustable firmness, and we see the combination of these actions to be positive as a contributor to our gross margin improvement expectations in the back half,” she said.

The new bed will be priced lower than Sleep Number’s current lineup that starts with its c2 model retailing at $1,099 mattress only. Pricing for the c2 will bump up $200 with the introduction of the c1. The company’s line tops out with its Climate360 system that retails at $9,199 with an adjustable base.

“We expect a strong value equation of smart adjustability starting under $1,000 to resonate with the scrutinizing consumer,” Ibach said.

Sleep Number reported a loss of $7.5 million in the first quarter on sales of $470 million, an 11% slump compared with sales of $526.5 million in the same quarter last year.

Smart beds from Diamond, King Koil and Kingsdown retail from $2,200 to $5,500 in queen. Each of those products include apps, tracking and data designed, like Sleep Number products, to provide consumers updates on sleep health.

See also:

  • Sleep Number swings to loss on year as sales slide 13.7%
  • Find out why Sleep Number is jumping into AI with its new smart mattress

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