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Hearth & Home June 2016

Moderna from Summer Classics.

2016 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.

1,829

Specialty Retailer Gross Revenues - Patio furnishings and accessories

U.S.

<$25,000

8%

$25,000 - $199,999

16%

$200,000 - $499,999

14%

$500,000 - $999,999

18%

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

20%

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

18%

>$5,000,000

6%

Average Average sales ticket (U.S.) in 2015

$1,398

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

59%

Indoor patio selling area (median sq. ft.)

3,800

Outdoor patio selling area (median sq. ft.)

3,100

Average number of manufacturers from whom retailers purchased furniture in 2015

8

Patio Retailers operating more than one store

14%

Patio sales made up by special orders in 2015

38%

Average number of years retailing patio furnishings

20

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

An increase in sales of six percent looks mediocre, until it’s put back-to-back with the 13 percent increase in 2014.

Patio Retailers’ Product Mix
Product Category % Retailers Selling
Patio 33%
Patio Hearth 3%
Patio Hearth Barbecue 43%
Patio Barbecue 21%

The largest percentage of patio dealers are those that sell all three product categories: patio, hearth and barbecue.

Retailers’ Market Area
Retailers' Market Area

Forty-three percent of patio dealers are in market areas with a minimum of 250,000 people.



Close to half (46%) of patio furnishings retailers also sell hearth products.



Patio Products Selling Area
patio products selling area

Sixty-seven percent of responding patio retailers devote at least 5,000 sq. ft. in season to the category.

Retail Sales of Outdoor Furniture and Related Accessories
2015
retail sales of outdoor furniture and related accessories

Forty-four percent of patio retailers gross over $1 million in patio products alone.

Years Retailing Patio Furnishings
Years retailing patio furnishings

Forty-two percent of respondents have been retailing patio furnishings for more than 20 years.

Number of Patio Furnishings
Retail Stores Operated
Number of Stores Operated

Eighty-five percent of specialty patio retailers operate a single store.

Derivation of Gross Revenues

In 2015, patio furnishings retailers derived 53 percent of their gross revenues from Outdoor Furniture and Wicker & Rattan.

Patio Retailer Margins in
2015 – Actual vs Target
Patio Retailer Margins Actual vs Target

Seventy-four percent of patio retailers reached their target margins in 2015; 15 percent did not, and 11 percent exceeded that goal.

Compared to a Year Ago
Retailers Up, Down, Same

More than half (53%) of responding retailers had better patio sales in 2015 than in the prior year.

 

Gross Revenue by Category
2015
gross revenue by category

Outdoor furniture accounts for 50 percent of the average patio retailer’s sales; hearth and barbecue products account for another 31 percent.

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

In 2015, special orders accounted for more than half of patio revenues for 35 percent of responding retailers.

Percent of Business
Over the Internet
Patio Retailer Margins Actual vs Target

The vast majority of specialty patio retailers had no revenue transactions for patio furnishings over the Internet in 2015.

Limit Internet Patio Sales

Fifty-eight percent of patio retailers who sell over the Internet limit those transactions to their market area.

Purchase From How Many Manufacturers?
purchase from how many manufacturers

Twenty-six percent of patio dealers purchase 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

Sixteen percent of responding retailers now purchase from more manufacturers than they did three years ago; nine percent now purchase from fewer manufacturers.

 

Actual Gross Margin
actual gross margin

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

Number of Manufacturers Purchased From
in Relation to Change in Number from 2014
Change Compared to 2014 Percent of Retailers Average Number of Manufacturers Purchased from in 2015
Purchased from More Furniture Manufacturers 15 9
Purchased from Fewer Furniture Manufacturers 8 7
Purchased from Same Number of Furniture Manufacturers 77 9

Seven to nine appear to be the right number of manufacturers from who patio retailers purchase products.

Retailers Who Have Placed or Plan to Place Early-buy Orders
purchase from how many manufacturers

Manufacturers are smiling, because 88 percent of patio retailers plan to place early-buy orders.

Change in Early-buy Orders
2016
purchase from how many manufacturers compared to 3 years ago

Fifty-five percent of patio retailers plan to increase their early-buy orders, and 18 percent plan to decrease their early-buy.

 

Retailers’ Expectations
Sales Outlook for 2016 vs. 2015
retailers' expectations sales outlook for 2015 vs 2014

In all areas of the country, patio retailers are forecasting a positive year; the West, however, is less optimistic than the other regions.

Sales Expectations for 2016

Retailers with a BETTER 2015 than 2014
Retailers with a Better 2015 than 2014
Retailers with a 2015 the SAME as 2014
Retailers with the same 2015 than 2014
Retailers with a LOWER 2015 than 2014
Retailers with a lower 2015 than 2014

Seventy-seven percent of patio retailers who had a better 2015 than 2014, and 60 percent who had a lower 2015 than 2014, tell us this year will be a better sales year than in 2015.

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