10 March 2011
Statement for Inside Retailing
Bedshed is currently implementing a measured strategy to expand its presence on the east coast of Australia. Our focus is on expansion through attracting new franchisees and maintaining and growing the profitability of our company owned stores.
Growth and expansion plans
Bedshed aims to secure the future of all franchisees by growing its franchise network and increasing its customer base on the east coast of Australia. At present, Bedshed is under-represented in the east coast's competitive and concentrated bedding market, which presents an opportunity to extend the franchise network without cannibalising our existing network of franchised and company owned stores.
The potential for Bedshed in NSW and Queensland is significant, given more than 50 per cent of Australia's population lives within these two states.
We would suggest our main competitors, Snooze, Forty Winks and Harvey Norman, are in the maturity phase of the business cycle, in that they are already heavily represented Australia-wide, while Bedshed is in the growth phase as we have room for expansion on the east coast.
Industry trends
Bedshed has observed many changes in the market during its 30 year history. Initially specialising in water beds, Bedshed expanded into other types of beds, bedroom furniture and associated lines to meet growing demand for those products.
Today, consumers are spending more money on their home environment as they tend to go out less frequently following the global financial crisis. Bedshed is selling more king-sized beds than ever before as people seek to create a bedroom haven with a large bed, attractive furniture and a plasma or LCD television.
From a retail perspective, good value bedroom suites are maintaining solid sales although today's consumer is more willing to buy just a bed rather than a whole suite. Currently, lower priced contemporary styles are selling very well, which sees consumers change furniture more regularly as the styles change. Our exclusive range of imported bedroom suites utilising Australian hardwoods is proving very popular.
The bedding industry is benefiting from society placing more emphasis on the importance of having a good night's rest as life becomes increasingly busy. Contemporary medical research shows it is possible to slow the aging process and improve overall health of the mind and body by having more quality sleep, which results in people spending more on bedding and bedroom furniture.
Franchising program
Bedshed has a competitive offering for potential franchisees that performs strongly in comparison to other specialist bedding franchises. Bedshed franchises are recognised as more profitable and less expensive than the competition. Profitability is the primary motivating factor for a potential franchisee and Bedshed's strong performance in this area sets us apart. We see the purchase of a Bedshed franchise as a major step towards a franchisee achieving their desired lifestyle – it's as much a lifestyle decision as a business decision.
The unique Bedshed import program also differentiates us from the competition as franchisees are offered input into product selection through organised overseas buying trips and a franchisee-elected Merchandise Advisory Council. It is rare that franchisees in any business are given genuine input into topline business decisions, however at Bedshed, we pride ourselves on listening to and considering franchisees' point of view when making decisions. We believe this is a major factor when potential franchisees are comparing Bedshed to its competitors.
