Sleep Country Canada (ZZZ), a Canadian mattress retailer, announced Tuesday that it will expand its partnership with Walmart Canada (WMT) by launching 10 new “Sleep Country Express” stores in Walmart Canada’s licensee spaces.
The first 10 stores, averaging 500 square feet, will open in strategic locations in Ontario and Quebec, allowing the company to test, learn and optimize, with the goal of expanding into other Walmart Canada stores across the country.
The 10 pilots are expected to launch this fall. (See Sleep Country Canada stock charts on TipRanks)
Sleep Country Canada president Stewart Schaefer said, “We are thrilled to deepen our partnership with Walmart Canada to provide new customers with a seamless journey to their best night’s sleep as we expand our omnichannel footprint. …
“We look forward to sharing our industry-leading assortment with even more customers, no matter where they choose to shop, as we execute against our aggressive growth roadmap.”
Each of the 10 new Express locations will offer an assortment of beds in a box, linens, pillows, protectors, adjustable bases, and headboards. In addition, each location will have eight to nine traditional mattresses that customers can discover on site.
On August 5, National Bank Financial analyst Vishal Shreedhar maintained a Hold rating on ZZZ and raised its price target to C$39.00 (from C$38.00). This implies 15.5% upside potential.
Overall, consensus among Wall Street analysts is that ZZZ is a Moderate Buy, based on three Buys and two Holds. The average Sleep Country Canada price target of C$39.40 implies 16.7% upside potential to current levels. Shares have gained approximately 31% year-to-date.
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