PHOENIX—The first Arizona, large-format Mattress Firm came to Scottsdale last week. The 23,958-square-foot outlet store is the largest Mattress Firm Supercenters in the country—and the company's 1,500th location.
Typically seeking stores between 3,500 and 5,000 square feet, Mattress Firm approached Darren Pitts, executive vice president of Velocity Retail Group, with a special request; find a warehouse-sized space in an affluent location with high-traffic, national tenants, and great visibility. The new store, located in Sonora Village at the southwest corner of Frank Lloyd Wright Boulevard and Loop 101, meets those requirements.
Pitts and Michael Clark, vice president with Velocity, identified the center with co-tenants such as Walmart Supercenter, Sam's Club, Best Buy, Staples and Kohl's. The location draws thousands of shoppers every day. The intersection has excellent access to Loop 101 on- and off-ramps at both the Frank Lloyd Wright and Raintree interchanges. The new store's location also boasts phenomenal visibility to Hayden Road, Frank Lloyd Wright Boulevard, and the Loop 101. Traffic passing the site exceeds 130,000 cars per day.
"Mattress Firm continues to strengthen its leadership position and this location speaks volumes about to their continued commitment to the Phoenix marketplace. This dominant flagship location in North Scottsdale is at the convergence of the Loop 101, Frank Lloyd Wright Boulevard, and Hayden Road will serve the affluent Northeast Phoenix and North Scottsdale trade areas. We were pleased to have secured such a prominent location in this important submarket for our client,” says Pitts.
Mattress Firm executives recently celebrated the opening at the new location. The grand opening included former Arizona Diamondback Luis Gonzales and Dr. Daniel Van Hoff from TGen, he is the physician in chief, and Roger Magowitz (part of the Seena Magowitz Foundation), members of the group that help raise funds for pancreatic cancer research. As part of this grand opening, Mattress Firm provided a $100,000 donation to TGen.
Steve Stagner, Mattress Firm's CEO, explains that Phoenix is one of the top 10 markets for the company nationwide. The company currently employs about 200 people in the Valley and recently purchased BedMart.
“Mattress Firm is one of the fastest growing retailers in the country—not just mattress retailers, but all retailers. We are adding 100-plus locations per year, and have continued plans to maintain growth at 10% year-over-year. The company has grown over the past 25 years and has grown through multiple recessions and economic downturns,” Stagner says.
“The cash-on-cash payback for a store is less than one year, which is unheard of in this industry,” Stagner goes on to say. “Mattress Firm has become the market leader. We drive 20% to 30% better per store average and per ticket average than our competitors. We have the number one market share in 90% of our markets that we operate in nationwide.”
Stagner cites several reasons for Mattress Firm's success: great real estate; investing in their real estate (they we have a higher-end look and feel, and invest three times more dollars than their peers in build-out); they invest heavily in advertising, which helps attract quality consumers; and they guarantee that people will be happy or the company will buy their mattress back.
“We live this motto,” says Stagner, We improve the lives of people one at a time by helping people sleep happy.”
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