Target, a retail giant, has decided to invest in Casper Sleep, a mattress start-up that has been trying to buy Casper over the past few months. Target had offered $1 billion for Casper, but no deal was reached. At the beginning of the talks with Target, and Casper has been raised a lot of money, the company generated sales of around $200 million in 2016, after the last time in 2015, private investment valuation of about $550 million. After the deal failed, Target could announce a new investment in Casper in the coming weeks.
Casper was founded in 2013 and began to enter the public eye in 2014. Since its establishment, the development has been rapid. Casper was the first bed to sell foam mattresses. The mattress was folded in a box and delivered to customers. Casper offers a 100-day return policy that helps shoppers order mattresses online without trying.
Casper faces fierce competition from rivals such as Tuft&Needle, Leesa, Purple Mattress and GhostBed, all of which are trying to gain market share from traditional Mattress companies. Casper also sells bedding, pillows and spring boxes. In addition to its own website, Casper sells products in Amazon.com, WestElm.com and dozens of West Elm stores.
Like many large retailers, Target is trying to curb store traffic and sales situation, on the one hand, now more and more young shoppers choose local brand, on the other hand, amazon continues to occupy the market share in the global scope. Another is the shock from rivals, which saw their revenues rise 63 per cent in the first quarter of this year, more than four times the industry average.
In February, Target outlined its recent development plans, introducing more than a dozen exclusive brands in areas such as apparel and home in the next two years to revive sales. Target has already had a taste of the past year, and the introduction of new children's brand Cat&Jack and Pillowfort has made good progress. In addition, Target is also working with a number of male brands such as Bevel and Harry's and clothing brand Who Wear Wear to attract young shoppers.