The integration of a major acquisition and the accelerated closure of non-performing stores top the list of priorities awaiting Ken Murphy as he assumes leadership of the nation’s largest bedding retailer.
Mattress Firm Holdings Corp. named Ken Murphy president and CEO and said current CEO Steve Stagner would assume the role of executive chairman and chairman of the board of directors. Murphy will assume direct leadership of the full operations of the company while Stagner will focus on the strategic vision for the company and the integration of the recently acquired Sleepy’s chain. The leadership transition was characterized as a long-term succession plan.
“(Ken Murphy) is the right leader at this time in our company growth story as we turn our focus from achieving our goal of becoming border-to-border and coast-to-coast with recent acquisitions, to continuing to grow through a relentless commitment to operational excellence,” Stagner said. “We have a tremendous opportunity ahead now that we have assembled a national footprint. Ken has been preparing for this role throughout his career. He is an incredibly strong operator and has already begun implementing his plan to drive results with a laser focus on store productivity.”
Mattress firm increased its store count by 265 units (311 openings, 55 closings, nine acquisitions) to 2,359 stores at the end of its fiscal year on Feb. 2. A few days later, the company closed on its $780 million acquisition of Sleepy’s, an operator of 1,050 stores, giving it a combined total of roughly 3,400 company owned stores with plans for another 180 to 200 stores this year.
While Mattress Firm continues to add new units, the company’s top priority this year is the integration of the Sleepy’s brand and operating nationwide under one nameplate. As part of that process, one of Murphy’s top challenges will be evaluating the real estate portfolio and accelerating the closure of a to-be-determined number of stores.
“The next chapter of growth for this company represents an exciting opportunity to turn our unbridled focus toward the pursuit of operational excellence as we begin to integrate all of the talented teams, best practices, and dynamically rich assets we’ve amassed in recent years,” Murphy said. “We have a clear path to achieve consistent execution inside our operation by focusing on the front lines, driving efficiencies, redefining high growth and capturing various omnichannel opportunities that will better serve our customers in the future.”
Murphy joined Mattress Firm in 1998 and has held multiple leadership roles within the company during that time. He was elevated to the role of president last year. His predecessor Stagner served as CEO of Mattress Firm since 2010, oversaw the company’s initial public offering and guided the company’s growth from $400 million in sales to more than $3.5 billion in pro forma sales in 2015.