Companies like Allbirds, Warby Parker, and Casper pioneered a new mode of retail where they sold their products online directly to consumers, rather than through middlemen like big-box stores. Many direct-to-consumer (DTC) firms thrived during the pandemic, especially mattress retailer Casper, which was acquired by private equity firm Durational Capital Management in November of last year. Now, many of these once high-flying companies are hitting rock bottom as many Americans pull back spending.
Casper isn't immune to the bleak macroeconomic conditions, which the company's chief executive, Emilie Arel, addressed on stage at the Fortune Most Powerful Women Next Gen conference last Wednesday. The downward trend of consumer spending on mattresses and other large durable goods has put Casper in a tough spot, Arel said on stage, and said the company "really started to feel the pain" in Q4 of last year.
