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Hearth & Home June 2016

The Rogue series from Napoleon Grills.

2016 Buyer's Guide — Barbecue Data

Note: The estimate of barbecue 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

Barbecue Specialty Retailers - U.S.

2,631

Specialty Retailer Gross Revenues - Barbecue products and accessories

U.S.

<$25,000

34%

$25,000 - $99,999

16%

$100,000 - $199,999

10%

$200,000 - $499,999

14%

$500,000 - $999,999

8%

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

2%

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

1%

>$5,000,000

0%

Average profit margin - Gas grills

30%

Total barbecue revenues represented by barbecue accessories

12%

Average number of barbecue brands carried

4

Barbecue Specialty Retailers with indoor and outdoor barbecue selling areas

44%

Indoor barbecue selling area (median sq. ft.)

550

Outdoor barbecue selling area (median sq. ft.)

400

Began retailing barbecue products (median yr.)

2000

Barbecue Specialty Retailers displaying and selling barbecues year round

88%

Barbecue sales to previous customers

36%

Barbecue Specialty Retailers open seven days a week

17%

Barbecue Specialty Retailers who give cooking demos at least once a week

16%



In 2015, 32% of all gas grills were sold as built-in units.



U.S. Sales of Barbecue Products
Year to Year Sales Change
U.S. Sales of Barbecue Products Year to Year

Sales of barbecue products declined slightly in 2015, following a strong performance in the prior year.

Barbecue Retailers’ Product Mix
Product Category % Retailers Selling
Barbecue 10%
Barbecue Hearth 44%
Barbecue Hearth Patio 40%
Barbecue Patio 6%

Only 10 percent of specialty barbecue retailers are able to exist by selling only barbecue products. The vast majority (84%) also sell hearth products.

Retailers’ Market Area
Retailers' Market Area

Seventy percent of responding retailers are in marketing areas of at least 100,000 people.

Retail Sales for All Products
2015
TOTAL RETAIL SALES FOR ALL PRODUCTS

Sixty percent of retailers who carry barbecue products have total sales over $1 million for all products they sell.

Retail Sales of Barbecue Products and Accessories
2015
Retail sales of barbecue products and accessories

Only 25 percent of specialty retailers selling barbecue products and accessories gross over $200,000 in sales of those products.

Gross Revenues by Category
Gross Revenues by Category

For retailers who sell barbecue products, 58 percent of their revenues are from sales of hearth products.

Stores Operated
% of Barbecue Specialty Retailers
Number of Stores Operated

Twelve percent of barbecue specialty retailers operate more than one store.

Staying in the Grill Business
Staying in the Grill Business

The percent of retailers who say they plan to stay in the barbecue business dropped by 14 percent in 2015.

 

Barbecue Purchases and Sales
2015
Barbecue purchases and sales for 2014

Sales of barbecue products have become just about a year-round business; 57 percent occur in the first half of the year, and 43 percent from July 1 to December 31.

Sales of Barbecue Products
2015 Compared to 2014
Sales of barbecue products 2015 compared to 2014

Only 26 percent of barbecue specialty retailers report having better year-over-year sales than in the prior year.

Additional Services Provided
Additional service provided

The percent of retailers providing Annual Servicing increased by 14 percent in 2015.

Grill Sales Up or Down
Grill sales up or down

Kamados and smokers continue to lead the way, but pellet grills lagged far behind.

Gas Grills – Average Gross Margin
2015
Average gross margin of gas grills

Seventy-eight percent of barbecue specialty retailers achieved gross margins of under 35 percent.

Type of Gass Grill Sales
Natural vs. Propane
Type of Gass Grill Sales Natural vs. Propane

For the past nine years, market share of propane gas grills has ranged between 56 and 63 percent.

Retailers Selling Prefabricated Grill Islands
Staying in the Grill Business

Only 42 percent of specialty retailers carry prefabricated grill islands.

 

Barbecue Accessories as Percent of Barbecue Revenues
Barbecue Accessories as Percent of Barbecue Revenues

Barbecue accessories account for more than 10 percent of total barbecue revenues for 39 percent of specialty retailers.

Consider Margins Made on Barbecue Products too Low?
Percent of Retailers
Staying in the Grill Business

Seventy-five percent of specialty barbecue retailers consider the margins they make on barbecue products to be too low.

 

Complementary Products
Complimentary products to barbecues

A whopping 89 percent of specialty retailers now carry fire pits, while 79 percent carry outdoor fireplaces. Fire rules!

Retailers Carrying
Sauces & Seasonings
Retailers carrying sauces and seasonings

Only 62 percent of barbecue retailers carry sauces and seasonings.

Retailers Selling
Sauces & Seasonings
Retailers selling sauces and seasonings, gross sales up down or same
Retailers Not Selling
Sauces & Seasonings
Retailers not selling sauces and seasonings

This year there was little difference in gross sales between retailers who do carry sauces and seasonings, and those who don’t.

Cooking Demos To Promote Sales
Percent of Retailers
Percent of retailers who do cooking demos to promote sales

Demos sell barbecues. So tell us why 44 percent of barbecue retailers don’t do demos?

Frequency of Cooking Demonstrations
Frequency of cooking demonstrations

Sixteen percent of retailers who do demos do so at least once a week.

 

Barbecue Grill and Smoker Shipments North America
1985-2014

Year

Charcoal

Gas

Electric

Total

1985

7,869,992

3,173,000

78,000

11,120,992

1986

7,938,592

3,443,000

120,000

11,501,592

1987

7,758,700

3,657,100

99,200

11,515,000

1988

8,137,400

3,850,300

134,700

12,122,400

1989

8,114,864

3,823,262

133,319

12,071,445

1990

7,831,621

4,002,279

190,809

12,024,709

1991

6,301,723

4,261,181

142,734

10,705,638

1992

5,992,326

4,283,387

155,895

10,431,608

1993

5,890,920

5,062,665

262,945

11,216,530

1994

6,274,420

5,837,136

237,425

12,348,981

1995

5,321,924

5,800,878

261,267

11,384,069

1996

5,159,325

6,413,417

262,862

11,835,604

1997

5,041,612

6,361,102

223,402

11,626,116

1998

5,033,205

7,969,537

215,534

13,218,276

1999

6,108,427

8,639,833

203,789

14,952,049

2000

5,898,000

9,320,000

211,000

15,429,000

2001

5,404,000

8,516,000

187,000

14,107,000

2002

5,363,500

9,583,500

238,200

15,185,200

2003

5,357,000

8,446,500

293,000

14,096,500

2004

5,426,250

8,732,200

293,700

14,452,150

2005

5,752,000

8,953,500

280,800

14,986,300

2006

6,845,000

10,137,500

290,000

17,272,500

2007

6,863,000

10,281,500

287,000

17,431,500

2008

6,775,000

9,614,000

292,400

16,681,400

2009

6,164,000

8,543,000

277,150

14,984,150

2010

6,232,500

8,553,500

276,600

15,062,600

2011

6,047,000

8,445,000

288,000

14,780,000

2012

5,917,000

8,200,000

280,000

14,397,000

2013

5,590,000

8,053,000

302,000

13,945,000

2014

N/A

N/A

N/A

N/A

2015

N/A

N/A

N/A

N/A

Data from the HPBA.

Sell Barbecues Over the Internet
Percent of retailers who sell barbecues over the internet

Twenty-seven percent of retailers selling barbecues do so over the Internet, as well as in their brick and mortar stores.

Limit Barbecue Internet Sales to Your Marketing Area?
Impact by other retailers from internet sales

Of those specialty barbecue retailers who do sell over the Internet, 30 percent do not limit those sales to their own market area.

Internet Sales
Impact by Other Retailers
Impact by other retailers from internet sales

Twenty-eight percent of barbecue retailers are feeling a major (negative) impact from other retailers selling over the Internet.

 

Selling the Concept of The Outdoor Room
Retailer’s Product Mix Yes No
Barbecue 40% 60%
Barbecue Hearth 35% 65%
Barbecue Hearth Patio 85% 15%
Barbecue Patio 60% 40%

Retailers selling all three categories – barbecue, hearth and patio – are most likely to be the ones promoting the concept of The Outdoor Room.

Selling the Concept of the Outdoor Room
Percent of Retailers
Selling the Concept of the Outdoor Room Percent of Retailers

Sixty percent of barbecue retailers say they are selling the concept of The Outdoor Room.

More Customers Creating Outdoor Rooms
Percent of Retailers
More Customers Creating Outdoor Rooms Percent of Retailers

Sixty-seven percent of barbecue retailers tell us that more of their customers are creating Outdoor Rooms.

 

Days Closed Related to Demographics
Total Population None Monday Saturday Sunday
Under 25,000 29% 30% 41%
25,000-49,999 25% 13% 62%
50,000-99,999 18% 9% 73%
100,000-249,999 15% 6% 5% 74%
250,000-499,999 18% 9% 73%
500,000-999,999 14% 15% 71%
Over 1,000,000 9% 18% 73%

No one closes their store on Tuesday, Wednesday, Thursday or Friday, but those in larger market areas are more likely than others to stay open seven days a week.

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