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Hearth & Home June 2015

Corsica cushion from Tropitone.

2015 Buyer's Guide — Patio Data

Note: The estimate of patio specialty retailers in the U.S. and Canada is derived from Hearth & Home’s circulation database. All other data are from recent surveys.

FAST FACTS

Patio Furnishings Specialty Retailers - U.S.

1,963

Specialty Retailer Gross Revenues - Patio furnishings and accessories

U.S.

<$25,000

9%

$25,000 - $199,999

33%

$200,000 - $499,999

18%

$500,000 - $999,999

17%

$1,000,000 - $1,999,999

13%

$2,000,000 - $4,999,999

6%

>$5,000,000

4%

Average Average sales ticket (U.S.) in 2012

$1,949

Percent of Patio Specialty Retailers with indoor and outdoor patio selling areas

54%

Indoor patio selling area (median sq. ft.)

4,000

Outdoor patio selling area (median sq. ft.)

3,000

Average number of manufacturers from whom retailers purchased furniture in 2014

9

Patio Retailers operating more than one store

22%

Patio sales made up by special orders in 2014

41%

Average number of years retailing patio furnishings

22

Through The Years
U.S. Sales of Patio Furnishings
U.S. Sales of Patio Products Year to Year 2003 to 2014

U.S. sales of patio furnishings though the specialty retailer network posted the best year-over-year increase in this century.

Patio Retailers’ Product Mix
Product Category % Retailers Selling
Patio 33%
Patio Hearth 9%
Patio Hearth Barbecue 35%
Patio Barbecue 23%

Close to half (44%) of patio furnishings retailers also sell hearth products; 58 percent also sell barbecue products.

Retailers’ Market Area
Retailers' Market Area

Sixty-six percent of patio furnishing retailers are in market areas with populations over 100,000.

Years Retailing Patio Furnishings
Years retailing patio furnishings

Sixty-five percent of respondents have been retailing patio furnishings for more than 15 years.

Number of Patio Furnishings Retail Stores Operated
Number of Stores Operated

Twenty-two percent of responding specialty retailers operate more than one store.

Derivation of Gross Revenues

In 2014, responding patio furnishings retailers derived 51 percent of their gross revenues from Outdoor Furniture and Wicker & Rattan; Hearth Products accounted for 13 percent and Barbecue Products 12 percent.

 

Retail Sales of Outdoor Furniture and Related Accessories
2014
retail sales of outdoor furniture and related accessories

Twenty-three percent of patio dealers gross over $1million in patio products alone.

Patio Products Selling Area
patio products selling area

Close to half (47%) of responding patio retailers devote at least 5,000 indoor sq. ft. in season to the category.

Compared to a Year Ago
Retailers Up, Down, Same
patio sales compared to a year ago

More than half (52%)of responding retailers had better patio sales in 2014 than in the prior year.

Patio Retailer Margins in 2014 Actual vs Target
patio retailer margins actual versus target

Seventy-nine percent of patio retailers did not realize their targeted margins in 2014, 11 percent exceeded their target and 10 percent hit their goal.

Percent of Business
Over the Internet
business over the internet

Seventy-three percent of patio specialty retailers reported that they did not have any revenue transactions for patio furnishings over the Internet in 2014.

Purchase From How Many Manufacturers?
purchase from how many manufacturers

About a quarter (24%) of patio retailers purchased from more than 10 manufacturers.

Purchase From How Many Manufacturers Compared to
Three Years Ago
purchase from how many manufacturers compared to 3 years ago

Most retailers stayed with the same number of suppliers, however, 14 percent purchased from fewer manufacturers, and 18 percent from more.

 

Gross Revenue by Category
2014
gross revenue by category

Outdoor furniture accounts for only 45% of the average patio retailer’s sales; hearth and barbecue products account for another 25%.

Special Orders as Percent of Patio Revenues
special orders as percent of patio revenues

In 2014, special orders accounted for more than half of patio revenues for 29 percent of responding retailers.

Actual Gross Margin
actual gross margin

Forty-three percent of patio retailers reported actual gross margins greater than 40 percent.

Retailers’ Expectations Sales Outlook for 2015 vs. 2014
retailers' expectations sales outlook for 2015 vs 2014

In all areas of the country, patio retailers are forecasting a strong year once again.

Sales Expectations for 2015

Retailers with a BETTER 2014 than 2013
Retailers with a Better 2014 than 2013
Retailers with a 2014 the SAME as 2013
Retailers with the same 2014 than 2013
Retailers with a LOWER 2014 than 2013
Retailers with a lower 2014 than 2013

Eighty-one percent of patio retailers who had a better 2014 than 2013, and 45 percent who had a lower 2014 than 2013, believe this year will be a better sales year than 2014.

More Industry Data

2018 October Business Climate

In early November, Hearth & Home faxed a survey to 2,500 specialty retailers of hearth, patio, and barbecue products, asking them to compare October 2018 sales to October 2017. The accompanying charts and selected comments are from the 232 useable returns.

» Continue

2018 September Business Climate

In early October, Hearth & Home faxed a survey to 2,500 specialty retailers of hearth, patio, and barbecue products, asking them to compare September 2018 sales to September 2017. The accompanying charts and selected comments are from the 2,003 useable returns.

» Continue

2018 August Business Climate

In early September, Hearth & Home faxed a survey to 2,500 specialty retailers of hearth, patio, and barbecue products, asking them to compare August 2018 sales to August 2017. The accompanying charts and selected comments are from the 196 useable returns.

» Continue

2018 July Business Climate

In early August, Hearth & Home faxed a survey to 2,500 specialty retailers of hearth, patio, and barbecue products, asking them to compare July 2018 sales to July 2017. The accompanying charts and selected comments are from the 193 useable returns.

» Continue