Ge Finance Sleepy's
GE Finance and Sleepy's: A Partnership for Growth
While Sleepy's, now Mattress Firm, may be widely known for its mattress sales and retail footprint, its earlier success and expansion were significantly influenced by a strategic financial partnership with GE Capital, the financial services arm of General Electric (GE).
During Sleepy's rapid growth phase, particularly in the 1990s and early 2000s, the company relied heavily on financing to support its expansion. Opening new stores required significant capital investments for real estate, inventory, and marketing. GE Capital Retail Finance (now Synchrony Financial, after GE Capital's restructuring) provided Sleepy's with crucial financing solutions, enabling them to scale their operations at an accelerated pace.
GE Capital's role wasn't limited to simply providing loans. They offered various financial products tailored to Sleepy's needs, including vendor financing, consumer credit programs, and asset-based lending. Vendor financing helped Sleepy's manage their inventory effectively by providing credit lines to purchase mattresses and related products from suppliers. Consumer credit programs, often branded as Sleepy's credit cards, allowed customers to finance their mattress purchases over time, making high-ticket items more accessible and boosting sales for Sleepy's. This access to credit, managed and underwritten by GE Capital, was a key driver in Sleepy's ability to capture market share.
Asset-based lending was also instrumental. GE Capital provided loans secured by Sleepy's assets, such as inventory and accounts receivable. This type of financing allowed Sleepy's to unlock the value of their existing assets to fund further expansion and acquisitions.
The partnership between GE Finance and Sleepy's was mutually beneficial. GE Capital gained a strong retail partner in a growing industry, generating revenue through interest income and transaction fees. Sleepy's, in turn, secured reliable and flexible financing, allowing them to aggressively expand their store network and market presence. This relationship played a significant role in Sleepy's transformation from a regional player to a national brand.
Ultimately, this strategic financial alliance demonstrates the importance of strong financial partnerships in facilitating business growth. By leveraging GE Capital's expertise and capital, Sleepy's was able to overcome financial hurdles and achieve significant success in the highly competitive retail landscape. While Sleepy's is now part of Mattress Firm, the foundational support provided by GE Finance during its critical growth years remains a testament to the power of effective financial strategies.