The Company Denied Any Involvement In Money Laundering
For its part, the company has vehemently denied all claims that they have been involved in any money laundering activities. Although it acknowledges that store location arrangements may seem strange, there is a perfectly reasonable explanation for why people often see so many Mattress Firms so close together.
“In the early 2000s, Mattress Firm set a goal to become the first border-to-border, coast-to-coast specialty mattress retailer. To achieve that goal, the company intentionally grew very quickly over a span of nine years through acquisitions and organic growth. As part of the acquisition of several competitors, sometimes with multiple acquisitions in a single market, we inherited existing, long-term leases for store locations. Many of these inherited lease locations happened to be near our existing store base. Once the stores were rebranded with Mattress Firm, a shopping center with two different competing mattress stores took on a new look,” a Mattress Firm spokesperson explained to Snopes. The representative noted that the company has since been working to “rationalize our store fleet” and vehemently stated that money laundering is “absolutely not the reason why we have so many stores.” But these assertions haven’t necessarily done much to stop the conspiracy theories.
What Role Did The Mattress Firm Ceo Play In The Companys Money Laundering Scheme
The former Mattress Firm CEO was sentenced to four years in prison for his role in a money laundering scheme.
According to prosecutors, the CEO funneled millions of dollars from the company into shell companies and then used the money to buy luxury homes and cars.
The CEO was also ordered to forfeit more than $3 million in assets.
Is Owning A Mattress Store Profitable
1. Mattresses are high-margin items. At grocery stores, profit margins hover right around 5%. Meanwhile, a $3,000 mattress costs about $300 to make giving mattress stores a whopping 9,000% profit when they sell one.
As of 2016, the company operated over 3,600 locations in 48 U.S. states. On October 5, 2018, Mattress Firm filed for Chapter 11 bankruptcy. The company planned to close 200 unprofitable stores and is said it was considering closing up to 500 other stores out of the more than 3,300 it operated at that time.
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Too Many Mattress Stores
Around the time that the money-laundering conspiracy theory took off, there were 3,500 Mattress Firm stores in the U.S.
If it seemed like there were a ridiculous number of stores open, that’s because there were. Mattress Firm filed for bankruptcy in 2018 and closed more than 700 stores as a result.
So, there’s no conspiracy theory after all. The truth is a bit more boring. The mattress industry makes it easy to keep stores open. Pair this with a company that expands too quickly and you get a mattress store on every corner.
How often do people buy a new mattress?
The Mattress Firm Conspiracy: An Analysis
Introduction and General Beliefs
Document
As Rodriguez says when he introduces the theory, it is actually one that weve all thought in the back of our minds for a split second. Thus, it is how easily the Mattress Firm conspiracy works in tandem with the American populations economic anxieties and mixed feelings towards large corporations, offering a simple explanation while still being silly and meme-filled that makes it so attractive.
Summation/Analysis
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Is Mattress Firm A Front For A Large
Mattress Firm stores are everywhere.
Its not uncommon to see two or three in the same shopping center, sometimes even across the street from one another. And not just two different mattress stores to promote competition, but the same exact store: Mattress Firm.
On top of how many Mattress Firm stores there seems to be, there are also all the other brick-and-mortar mattress companies out there, such as Mattress World and BedMart.
In fact, there are currently more mattress stores than McDonaldsor Starbucksin the United States, most of which are Mattress Firms, according to USA Today.
Illustrating this point, 42.6% of Mattress Firm stores are within a one-mile radius of one another, according toBusiness Insider.
The average American only buys a new mattress every seven to 10 years. Plus, most millennials are having their mattresses delivered straight to their doors with bed-in-a-box services, according to USA Today.
So why are there so many Mattress Firms?
A conspiracy theory recently went viral on Reddit after a user suggested that Mattress Firm was a front for a large scale money laundering scheme. How could a company with such a slow-moving product manage to keep so many stores open, many Reddit users wondered.
Mattress Firm is some sort of giant money laundering scheme, one user wrote. I remember seeing four Mattress Firms all on each corner of an intersection once, and there is no way there is such a demand for mattresses.
But whats really going on?
Why Are There So Many Mattress Firm Locations
Why are there so many mattress firm locations?
The answer is both simple and complicated. On the one hand, Mattress Firm was one of the most aggressive expansionist companies in recent memory. In just a few years, the company went from around 1,000 stores to over 3,500. This was thanks in part to a series of acquisitions, but also to a general strategy of aggressive growth.
On the other hand, this growth was not sustainable. In 2018, Mattress Firm filed for bankruptcy and closed more than 700 stores. This was due to a variety of factors, including the fact that the company was overextended and that the mattress industry was becoming increasingly competitive.
So, in short, there were so many Mattress Firm locations because the company was growing too quickly. This growth was not sustainable, and it ultimately led to the companys bankruptcy.
As well as that, Around the time that the money-laundering conspiracy theory took off, there were 3,500 Mattress Firm stores in the U.S. If it seemed like there were a ridiculous number of stores open, thats because there were. Mattress Firm filed for bankruptcy in 2018 and closed more than 700 stores as a result.
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How To Contact Mattress Firm
If you have any questions that werent answered in this Mattress Firm review, feel free to reach out to the brand by using any of the two contact methods below:
Mattress Firms customer service hours are:
- Monday Saturday 8 am 9 pm CST
- Sunday 8 am 7 pm CST
It is always good to check out your options before buying. Here are some other mattress brands to consider in your search:
Are There Too Many Mattress Stores
At the time of the emergence of the money laundering conspiracy theory, there were 3,500 Mattress Firm stores in the United States
If it seems that an absurd number of stores were opened, it was because of this. The mattress firm filed for bankruptcy in 2018 and closed more than 700 stores as a result. I mean, theres no conspiracy theory after all. The truth is a little more boring. The mattress industry makes it easier to keep stores open. Combine this with a company that is expanding very fast and you will get a mattress store on every corner.
Mattress manufacturers recommend changing your mattress
Mattress manufacturers recommend changing your mattress every 7-10 years. The service life of a mattress depends on its type, quality and use. By the age of 10, it is usually worn out enough to look for a replacement.
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Why There Are So Many Online Mattress Brands
There are about 175 online bed-in-a-box companies in business. Why so many?
The reasons are similar to why there are so many physical stores. Online companies have little overhead costs and high profit margins. The technology that rolls the mattresses up into smaller boxes also makes them cheaper to ship.
Many mattress companies don’t manufacture their beds themselves. The process is outsourced, which brings costs down. So, it doesn’t take too much to start an online mattress company.
How Much To Spend On A Mattress
How much should you spend on a mattress? This is a question that doesnt have a straightforward answer, as there are many factors to consider. Here are a few things to keep in mind when budgeting for a new mattress:
1. The type of mattress you needThere are many different types of mattresses on the market, from traditional spring mattresses to newer memory foam and latex options. The type of mattress you choose will affect the price.
2. The size of mattress you needMattresses come in a variety of sizes, from twin to California king. The size of mattress you need will impact the price.
3. The firmness of mattress you needMattresses range from super soft to extra firm. The firmness of mattress you need will affect the price.
4. The warranty and return policyWhen you buy a new mattress, be sure to ask about the stores return policy and warranty. These can add to the cost of the mattress, but they may be worth it for peace of mind.
5. The delivery feeIf youre buying a mattress online, be sure to factor in the cost of delivery. Some companies offer free shipping, while others charge a fee.
Now that you know some of the things to consider when budgeting for a new mattress, you can start shopping around and comparing prices. Keep in mind that the best mattress is the one that fits your needs and budget.
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What Are Peoples Thoughts On The Mattress Firm Conspiracy
The mattress firm conspiracy is a theory that the company is deliberately overcharging customers and engaging in other unethical practices. Some people believe that the company is using marketing techniques to target vulnerable people, such as the elderly or those with health conditions. Others believe that the company is simply engaging in unscrupulous business practices. Whatever the case may be, there is no denying that the mattress firm conspiracy is a hot topic of discussion among consumers.
The Economic Downturn Created High Demand
If there’s one thing people put off when money is tight, it’s buying a new mattress. Who can afford to spend $1,000 or more on a new bed when they’re living paycheck to paycheck?
As a result of the 2008 recession, people cut back on unnecessary purchases, including mattresses. After the economy bounced back, people were ready to get that long overdue mattress.
Mattress stores expanded aggressively to meet the demand. But was this a big mistake?
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What Are The Mattress Firm Subsidiaries
The Mattress Firm subsidiary companies are:
1. Mattress Warehouse: A mattress retailer with over 150 locations across the United States.
2. Mattress Firm Clearance: A mattress clearance retailer with over 50 locations across the United States.
3. Mattress Firm Adjustable Beds: An adjustable bed retailer with over 30 locations across the United States.
4. Mattress Firm Commercial: A mattress retailer for businesses and organizations with over 1,000 locations across the United States.
5. Mattress Firm Online: An online mattress retailer with a website and online presence.
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The Truth: Salespeople Are There To Help Themselves Make Mattress Sales
Sorry to say, but some salespeople do not have your best interest in mind when helping you shop for a mattress. Their job is to make a sale. Even if they arent working on commission, there are quotas to meet, overstocked mattresses to push, and non-commission bonuses to earn.
Some salespeople are helpful and genuinely interested in helping you find the best option as long as it is in their store.
Do you find high-pressure sales tactics uncomfortable when trying to make a rational decision? Salespeople tend to be smooth talkers. You may not realize youve been duped until it is too late. Or, perhaps you just want to get out of there and rush the decision.
If you feel sales pressure, your best bet is always walking out of the store. When you are ready to make a decision on your terms, there will still be a mattress for sale there. Or use their high-pressure sales tactics to get yourself a bargain. Set your own price and walk away if it exceeds your budget. Online sellers tend to have less markup, but may offer additional perks, too.
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What Are The Three Mattress Firms On One Street
If youre looking for a new mattress, you might be wondering why there are three mattress firms on one street. While it might seem like overkill, there are actually a few reasons for this.
For one, mattresses are a big purchase, and people often like to have a few options to choose from. Having three mattress firms in one place makes it easy to compare prices and find the perfect mattress for your needs.
Another reason is that mattresses can be a bit of a tricky purchase. There are a lot of factors to consider, and its not always easy to find the right one. Having three different stores means that youre more likely to find a knowledgeable salesperson who can help you make the right decision.
Finally, its worth noting that mattresses dont always last forever. If you find yourself in need of a new mattress sooner than youd like, its nice to know that you have a few different options close by.
So, if youre in the market for a new mattress, dont be discouraged by the three mattress firms on one street. Theyre there for a reason, and they can actually make the process of finding the perfect mattress a lot easier.
Overview Of Mattress Firm
Founded on July 4th, 1986, Mattress Firm was the dream of Paul Stork, Harry Roberts, and Steve Fendrich, who first launched the brand in Dallas, Texas.
The company has since made their way to California, acquiring many other big names in the sleep market, like Sleep Country USA and Sleep America.
Today, the company has over 2,400 stores across the nation, teaching all of their employees to become Sleep Experts with 80 hours of training.
Mattress Firm has always been about giving customers the best deals. Thats why they have something called the Rest Assured Promise that guarantees you will get the best prices, experience, and selection possible.
Helping people is in the spirit of who Mattress Firm is as a company, so it comes as no surprise that they give back to the community as well.
Working hand-in-hand with Foster Kids, they ensure homeless children and low-income families have quality sleep by holding mattress drives three times per year.
Now that you know a little more about the ethics behind the brand, this Mattress Firm review will fill you in on their pros and cons:
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Now Mattress Firm Is Optimizing Its Footprint
After all that acquisition, the company worked to rationalize its store fleet and even closed a number of stores. Mattress Firm uses a proprietary system with data analyses and financial viability forecasts to identify optimal locations, while also respecting its landlord relationships and its long-term leases.
We are committed to optimizing our footprint and ensuring we continue to provide our customers easy, convenient access to our products, the spokesperson added. Similar to coffee shops, fast food restaurants, and gas stations, our store placement is based on factors including population, income, and drive time. Its critical for us to invest in real estate in highly trafficked intersections and shopping centers in key markets to maintain visibility, so, in actuality, sometimes it does make financial sense to have stores in close proximity.
As WBUR reported in 2018, Mattress Firm wanted to be customers’ only choice for mattress buying. Their stated premise strategy is called relative market share, Seth Basham of investment firm Wedbush told WBUR. So they want to be a leading market share player in any given local market so that they can drive economies of scale in advertising as well as distribution.
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According to their website, they are the largest mattress retailer in the United States.
Their page reads: “For the past 90 years, Mattress Firm and our family of companies have been delivering better sleep by matching you with your perfect mattress at the perfect price.”
“What started as a few stores has grown into America’s largest specialty mattress store, with more than 2,400 neighborhood stores in 49 states.”
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Why Are Mattress Prices So Different
Mattress salespeoples power comes from the fact that they know what a fair price is for each mattress and you dont. Many mattress stores invent hugely inflated standard retail prices and then offer discounts that still price the mattress way above its actual cost.
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Why Are Mattress Firms So Close Together
Have you ever wondered why there are so many Mattress Firm stores close together? It turns out that there is a reason for this. According to an article in Business Insider, nearly half of all of its stores are within a one mile radius of each other. This is because the company is trying to create a mattress firm bubble. By clustering its stores together, the company is hoping to create a destination for people to come and shop for mattresses. This strategy appears to be working, as the company has been growing rapidly in recent years. However, it is now facing financial difficulties and has filed for bankruptcy.
So, why are mattress firms so close together?
There are a few reasons for this. First, being close to other Mattress Firm stores makes it easier for customers to compare prices and products. Second, being close to other stores in the same industry can help to draw in customers who are already in the market for a new mattress. Finally, being close to other stores in general helps to increase foot traffic, which can lead to more sales.
Lets dig into it and see what we can uncover.
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