AW

2025 West Division Region Plans Combined

Presentation Notes

Team Members:

  • Jim Kehoe

  • Tiffany Hensley

  • Lucas Verbish

  • Randy Kunkle

  • Steve McClean

  • Paryse Boal

  • Andrew Walker

  • Sammy Casillas

  • Ryan Spradling

  • Jacob Rouch

  • Rebekah Milnek

  • Alayne Weathersby

  • Christi Crawford

Presentation Focus:

The presentation concentrates on the West Division 2024 performance results within the TEMPUR+SEALY brand, emphasizing market share analysis, sales growth, and strategic planning for upcoming initiatives.

Sales Metrics:

  • TPX Adjustable Attach Rate: 53% (excluding FS)

  • Tempur Sales Growth: Up 3.8% (excluding FS/Levitz)

  • Luxe Adapt Sales: An impressive growth of +51%, indicating strong consumer demand for premium products.

  • Breeze Sales: Positive growth of +11%, reflecting successful marketing efforts.

  • Tempur Base Sales: Increased by +30%, showcasing a solid base of loyal customers.

Team Highlights:

  • The overall team morale is strong, and there is readiness within the new region for the anticipated Sealy 2025 launch, demonstrating a proactive approach to future challenges.

  • Notable sales achievements include collaborations generating over $1 million, emphasizing effective teamwork and partnerships.

Sales Insights:

  • There has been an increasing attach rate for Tempur products compared to the prior year, with the attach rate now at 52% when including FS.

  • Excluding Levitz's impact, the Southwest region experienced a 3% increase in overall Tempur sales, indicating market stability.

Southwest Region Scorecard (YTD Metrics):

  • Sealy/S&F Sales: $16.6 million against a budget of $21.2 million, suggesting room for growth and meeting sales targets.

  • Tempur Sales: $15.4 million, slightly under the budget of $15.8 million, indicating the need for strategic review.

Leaders and Strategic Points:

  • Leaders:

    • AFW: Notable increase in Sealy Brand Operating Success (BOS).

    • Snooze: Expansion of franchises, indicating a strong growth strategy.

  • Challenges (Bleeders):

    • Sam Levitz: Significant annual loss of $5 million, requiring immediate attention to reclaim market presence.

Sales Performance Indicators:

  • Breeze Products: Registered a year-over-year increase of 10%, highlighting growing consumer interest.

  • Sealy Hybrids: Faced a decline of 18% in sales, which necessitates analysis of market trends and consumer preferences.

  • Challenges: Placement concerns regarding the Adapt and Infrared options, which need to be reinforced with improved sales strategies.

2024 Region Wins:

  • Total Wins: 16 significant achievements and milestones;

  • Total Annual Gain: Approximately $2,550,000, representing robust growth.

Launch Goals for Sealy 2025:

  • Proactive preparations are required for upcoming product previews and a comprehensive merchandising strategy that aligns with consumer expectations and market trends.

Market Penetration Results:

  • In-depth analysis of regional penetration rates highlighting strong performing areas and identifying underperforming markets for targeted interventions.

Southwest Region Acquisition Opportunities:

  • Emphasis on expanding retailer penetration in key markets, targeting high-volume sales regions to strengthen market share.

Strategies for Growth:

  • Determined plans to boost sales through innovative marketing channels and addressing specific market needs identified in prior assessments.

Brand Maximization Strategies:

  • Key initiatives that focus on enhancing product visibility through diverse promotional activities across various platforms.

Development Plans:

  • Training and development strategies tailored for team members, aimed at fostering a high-performance culture with accountability and results-driven attitudes.

Market Conditions Assessment:

  • Overview of current macro-economic factors affecting the housing market, which in turn impacts mattress sales trends and industry dynamics.

Company Updates:

  • Performance reviews conducting a thorough analysis of challenges faced during the current economic conditions and upcoming potential strategies.

Sales Metrics Summary:

  • A detailed quarterly and year-over-year breakdown, analyzing sales performance across various mattress categories to identify trends and future opportunities.

Partnership Insights:

  • Initiatives focused on strengthening partnerships in response to competitive pressures, ensuring collaborative efforts are maximized for mutual benefit.

Market Analytics:

  • Strategies developed for adapting to and preparing for product launches scheduled for the upcoming quarters.

Future Goals and Initiatives:

  • Driving employee engagement and cultivating brand loyalty to empower optimum performance levels across all divisions.

Sales Operations Framework:

  • A structured framework dedicated to enhancing continuous performance improvement through effective teamwork and transparent communication strategies.

Strategic Planning for 2025:

  • A clear emphasis on channel strategies, advocating for cross-functional collaboration aimed at maximizing productivity and effective outcomes.