British bed retailer and manufacturer Dreams was founded in 1987 by Mike Clare. It currently operates around 190 stores, as well as its own mattress factory. Dreams positions itself as a “sleep expert” and is focused on establishing its credentials as the “most recommended” bed specialist. Its ranges consist of branded beds, divans, bedsteads, adjustable beds, mattresses, futons, bunkbeds and sofa beds. It also sells duvets, pillows and bed linen. In 2013, Dreams went into administration and was bought by Sun European Partners. It has since launched a number of three-year turnaround programmes. Its current focus is digital investment including a new web platform launched in 2018. It aims to prepare the business for the next generation of shoppers willing to purchase beds and mattresses online. It is also honing personalisation skills and achieving a single view of the customer. A key part of Dreams’ turnaround strategy has been on manufacturing, with product improvements reducing returns rates. It has also driven a ‘replace every eight’ campaign to encourage new mattress sales.
Two Dreams directors will leave the beds specialist this week as the retailer adapts to a changing retail environment partly precipitated by the coronavirus outbreak.
The online players selling memory foam mattresses tightly rolled up and delivered in a box were supposed to revolutionise retail – but in a fiercely competitive market, brands are under pressure.
As Dreams posts sales and profit growth for the fifth year in a row, Retail Week talks exclusively to boss Mike Logue about how the beds specialist continues to avoid the nightmare that so many other retailers are facing.
From going into administration to turning a profit is no small feat. By becoming a specialist in its field, Dreams made swift changes and has proven it’s a winner in a fiercely competitive sector
Big-ticket retailers rely heavily on Boxing Day and the January Sales, but this year the spectre of Brexit looms large.
Advertisement
