Casper’s new go-to market strategy was developed with the customer at the center. With this, the physical store plays a key role. Casper’s brick-and-mortar stores serve as the foundation for the “awareness” and “consideration” stages in the buyer’s journey, but they are also part of the “repeat” stage.
Their e-commerce site is being used for smaller, entry purchases to test out the brand. Below you’ll see that the consumer “buys mattress and pillow for daughter online” but then, “purchases king mattress, sheets and 2 pillows for master bedroom” from one of their physical stores afterwards. The e-commerce site is used as the gateway to make larger purchases in a brick-and-mortar setting.
After testing out Casper’s sleep products in-store, the consumer feels more comfortable to make a purchase online – therefore omnichannel is essential. Even afterwards, the consumer returns to the physical store to make repeat purchases, which shows the integral value in Casper’s physical store presence to allow consumers to touch and feel their products.
Casper started out as a direct-to-consumer brand – only offering one channel for their customers. Soon after their launch in 2015, the company decided to open their first permanent retail store in NYC. Now, Casper has a physical footprint of 65 brick-and-mortar stores, with the potential to expand.
The company has established partnerships with retailers such as Target, Costco, Raymour & Flanigan and Nordstrom. Each of these retailer’s house Casper products in their store locations – increasing Casper’s reach as a brand significantly. Although they have 65 of their own retail stores, they are in hundreds of markets all over just from their partnerships with big box retailers.
Casper’s store prototype has an experiential feel that creates an enjoyable and educational mattress shopping experience. Their shops feature a cozy layout that highlights their products, but also contains bedrooms where shoppers can test the mattresses themselves.
Physical stores are vital to Casper’s changing culture, and they noted this in their investor presentation. Casper continues to dominate the $432 billion sleep market, differentiating their product and service mix.
The company has seen strong, continuous financial growth, with a total net revenue of $474 million from fiscal 2020. Their third and most recent quarter featured a gross profit revenue increase of 5.9% to $68.5 million.
Source: Casper Jan. 2021 Investor Presentation, Casper’s First Mattress Store – CNBC, Casper Third Quarter 2020 Results
Photo Credit: Casper Jan. 2021 Investor Presentation, Casper’s First Mattress Store – CNBC
Casper believes everyone should sleep better. The Sleep Company has a full portfolio of obsessively engineered sleep products—including mattresses, pillows, bedding, and furniture designed in-house by the Company’s award-winning R&D team at Casper Labs. In addition to its e-commerce business, Casper owns and operates Sleep Shops across North America and its products are available at a growing list of retailers.