Dutch mattress retailer Beter Bed is looking forward with confidence after a successful 2021: its new strategy is catching on, so the retailer is now renovating all of its stores and focuses more on e-commerce.
On track with new strategy
Beter Bed performed well during the second year of the pandemic, CEO John Kruijssen said: despite a lockdown in its Dutch home market, revenue increased by 5.3 % on a comparable basis to 214.2 million euros. Online sales even rose by 56 %: e-commerce now accounts for almost a quarter (23.4 %) of total sales.
Net profit rose from 7.9 million euros to 13.9 million: the extra capital will be directed towards more investments. By 2025, online sales should account for at least 25 % of total sales, in accordance with the company’s new strategy launched in May 2021. Beter Bed has therefore engaged an entirely digital team, but at the same time is focusing on a new look and feel for all physical stores and wants to develop the new Leazzzy leasing concept further.
Year of major developments
“Unlocking our digital potential has been the driving force behind a number of important developments”, the CEO explained. Last year, Beter Bed tested a new Experience store concept in Groningen, which Kruijssen says has been very well received – both in terms of footfall and average conversion and transaction value. Consequently, the entire store network will be given a makeover in the future. Leazzzy, too, was launched last year and enjoyed a positive outlook: this year the company will add not only additional products but also services, bearing the motto Sleep-as-a-Service.
For this year, the mattress group is preparing stock buffers and will keep tight cost management because it might still take some time for the current disruptions in the supply chain to normalise. Not only is the company still feeling the effects of the Covid pandemic (staff shortages and high raw material prices), but Beter Bed is also closely monitoring the situation in Ukraine.