NEW YORK, United States — Millennial mattress brand Casper plans to open 200 brick and mortar stores across the US in the next three years, as the business of sleep heads towards the $40bn mark.
Launched in 2014, the fast-growing startup, renowned for disrupting the mattress market with its direct-to-consumer model, hopes the move will give it the edge over competitors in the digital realm, such as Eve, Simba and Saatva which have sprung up over the past couple of years.
“Innovation has always been our catalyst for growth,” said Philip Krim, CEO and Co-Founder of Casper. “As we look ahead to Casper’s next chapter, we see the future of sleep driven by unparalleled R&D, and an evolved consumer experience.”
Casper, one of the fastest growing consumer brands of all time, launched in 2014. Generating $1M in revenue in its first 28 days, it has since gone on to earn over $300M and expand into UK and the rest of Europe. However, last year Krim told the New York Times: “The reality that we face is that a vast majority of people don’t know that we exist.”
To help combat this problem, in addition to running a number of popups and selling its products via US retailer Target – which invested $75 million to Casper — a significant portion of the $240 million the brand has raised to date — earlier this year the startup opened its first permanent retail shop in New York. The Casper Sleep Shop, a 3,000 sq ft store featuring six bedrooms for shoppers to trial its mattresses, as well as interactive exhibits showcasing its other products, has enabled the company to educate customers and grow brand visibility.
According to Krim, sales have grown quickly in markets where the company has created temporary stores, so it comes as little surprise he plans to double down on the strategy and establish more of a physical presence.
As the sleep-health debate continues to lure in consumers on a quest to cultivate the perfect night’s sleep, for brand’s like Casper, the time is now to tap into the commercial opportunities arising from the heightened awareness surrounding the benefits of sleep.
Competitor Eve, is already hot on the brand’s heels, having recently announced a new partnership with Dreams, which will see it mattresses sold across the retailers stores in the coming months.
This new direction doesn’t seem to be worrying Casper though. Krim told Racked that Casper plans on selling mattresses in an entirely different way than old-school stores. “Casper stores are the antithesis of traditional mattress store experience that is notorious for sky-high markups and aggressive sales tactics,” he explained. “We are reimagining how people shop for sleep by listening to customers to create an atmosphere where they actually want to visit.”
With the experience economy now an integral part of any wellness brand’s success, Casper understands the importance of engaging with its community in meaningful ways.
“A big part of this is building a community of people that value sleep and want to share that with us,” Casper SVP of experience Eleanor Morgan, told Racked. “They might join the brand family and ultimately become Casper customers, but the conversation around sleep is the main focus.”
Moving forward, its physical stores will provide the brand with the perfect environment to lead those conversations.