Good writeup and interesting idea. Another point in favour is that there's a huge demographic tailwind in Canada and household formation should be above trend for a while which should provide an opportunity to expand store footprint.
Yes, I also think immigration is a big factor. To your point, the older population buys from the Sleep Country’s and not some DTC brand they never tried.
Great report mate. The level of depth you have gone to is very impressive.
They sure have been busy with acquisitions. Are you concerned at all around the growth via acquisition or comfortable with managements ability to allocate capital?
It’s interesting to see an industry that hasn’t been completely taken over by e-commerce and the power of their bricks and mortar stores. It makes sense given the product!
Hi Nick, thanks for reading. I think all acquisitions made sense. They don’t acquire for the sake of acquiring. They are very focused on DTC expansion acquisitions only. Multiples paid are also fairly reasonable. Ecommerce doesnt have a edge in this industry. At the end ecommerce is just changing the delivery experience. All ecommerce focused players in mattress are struggling (casper, purple). You need a physical presence - an ombichannel approach to be successful
Good writeup and interesting idea. Another point in favour is that there's a huge demographic tailwind in Canada and household formation should be above trend for a while which should provide an opportunity to expand store footprint.
Yes, I also think immigration is a big factor. To your point, the older population buys from the Sleep Country’s and not some DTC brand they never tried.
Great write up.
Interesting write up.
I see that Leon's is creating a REIT.
Great report mate. The level of depth you have gone to is very impressive.
They sure have been busy with acquisitions. Are you concerned at all around the growth via acquisition or comfortable with managements ability to allocate capital?
It’s interesting to see an industry that hasn’t been completely taken over by e-commerce and the power of their bricks and mortar stores. It makes sense given the product!
Hi Nick, thanks for reading. I think all acquisitions made sense. They don’t acquire for the sake of acquiring. They are very focused on DTC expansion acquisitions only. Multiples paid are also fairly reasonable. Ecommerce doesnt have a edge in this industry. At the end ecommerce is just changing the delivery experience. All ecommerce focused players in mattress are struggling (casper, purple). You need a physical presence - an ombichannel approach to be successful