Mattressman is a successful internet-based retailer looking to expand its multi-channel operation by building a national store portfolio. It is interesting both as a new entrant to the sector, as well as a reflection of an increasing trend of e-tailers who are expanding into the traditional world of physical stores.

Mattressman was established in Norwich in 2004 by Andrew Kerry as an internet mattress retailer. The business has grown steadily over the last eleven years, picking up the Sunday Times Fast Track Award in 2009 as Britain’s 6th fastest growing company, and the E-Commerce Initiative Award in 2011. Mattressman is now the leading online retailer of mattresses with a turnover of c£25 million predicted this year.

Key relationships with suppliers and logistics companies mean the company is able to offer free next-day delivery – a unique service within the industry. Mattressman has recently expanded into manufacturing with the launch of a sister company, the British Bed Company, in 2012. To complement its strong online presence and become a true multi-channel retailer, Mattressman has expanded its physical store portfolio to 14 units across the East of England and Greater London area, recently acquiring a 15th in Northampton. It is now looking to further expand this portfolio.

Mattressman is focusing on acquiring prominent stores on retail parks or busy standalone locations. Initially the focus will be on the South East / Greater London and East & Central Midlands. These stores will ideally be between 2,000 – 5,000 sq ft with a minimum internal width of 6.1 metres (20’) and shared parking. Larger cities are likely to feature a hub and spoke system of a larger store of c. 7,500 sq ft serving several smaller stores to ensure Mattressman’s delivery service is maintained.

Rent and lease terms will obviously vary across the country but in the initial roll out Mattressman is looking to take standard 10 year leases with a tenant-only break in the fifth year, in keeping with a number of retailers in the market at present. Mattressman’s specification is very straightforward with the standard shell including an amenity block, shop front (ideally with glazing), screeded floor and signage areas.