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Hearth & Home June 2018

Gensun’s Modanō-Grill-and-Bar-Center-Island.

2018 Buyer's Guide – Barbecue Data

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

FAST FACTS

Barbecue Specialty Retailers - U.S.

2,387

Specialty Retailer Gross Revenues - Barbecue products and accessories

U.S.

<$25,000

31%

$25,000 - $99,999

39%

$100,000 - $199,999

11%

$200,000 - $499,999

14%

$500,000 - $999,999

3%

$1,000,000>

2%

Average profit margin - Gas grills

31%

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

57%

Indoor barbecue selling area (median sq. ft.)

800

Outdoor barbecue selling area (median sq. ft.)

300

Began retailing barbecue products (median yr.)

2000

Barbecue Specialty Retailers displaying and selling barbecues year round

90%

Barbecue sales to previous customers

36%

Barbecue Specialty Retailers open seven days a week

10%

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

37%




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

Since 2014, the peak year of barbecue sales in the last decade, a downward trend persists.

Barbecue Retailers’ Product Mix
Product Category % Retailers Selling
Barbecue 10%
Barbecue Hearth 53%
Barbecue Hearth Patio 32%
Barbecue Patio 5%

In the field of barbecue retail sales, the most common business model is to combine hearth products with barbecue products.

Retailer’s Market Area
Retailers' Market Area

Sixty-nine percent of barbecue retailers are in a population area under 250,000.

Retail Sales for All Products
2017
TOTAL RETAIL SALES FOR ALL PRODUCTS

Thirty-seven percent of barbecue retailers have sales above $2 million for all products carried.

Retail Sales of Barbecue Products and Accessories
2017
Retail sales of barbecue products and accessories

Nineteen percent of barbecue retailers have sales of barbecue products and accessories of over $200,000.

Gross Revenues by Category
Gross Revenues by Category

Hearth products represent 52% of gross revenues for barbecue retailers.

Stores Operated
% of Barbecue Specialty Retailers
Number of Stores Operated

Thirty-five percent of barbecue retailers have more than one store.

Staying in the Grill Business
Staying in the Grill Business

Twenty-two percent of barbecue retailers are Undecided when it comes to continuing carrying the line.

 

Barbecue Purchases and Sales
2017
Barbecue purchases and sales for 2014

Sixty-percent of barbecue purchases by retailers occur in the first half of the year, but continue to the end of the year.

Barbecue Products Categories
2017 Compared to 2016

Percent of Barbecue Retailers Reporting INCREASE in 2017

Sales of barbecue products 2015 compared to 2014

Pellet grills are leading the way. Forty-two percent of barbecue retailers report an increase in sales of pellet grills, followed by gas grills at 33%.

Percent of Barbecue Retailers Reporting DECREASE in 2017

Sales of barbecue products 2015 compared to 2014

Twenty-six percent of respondents experienced a decline in sales of Kamados; 25% reported a decline in sales of charcoal grills.

Gas Grills – Average Gross Margin
2017
Average gross margin of gas grills

Proper margins continue to be a problem for barbecue retailers. Eighty-six percent of those retailers tell us their average gross margin is under 35%.

Additional Services Provided
Additional service provided

Only 33% of barbecue retailers provide design services to their clientele.

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

With 60% market share, propane continues as the fuel of choice for barbecuers.

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

Thirty-two percent of barbecue retailers say that barbecue accessories represent over 10% of their barbecue revenues.

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

Seventy-one percent of barbecue retailers say that margins are too low.

Retailers Carrying
Sauces & Seasonings
Retailers carrying sauces and seasonings

Thirty-two percent of barbecue retailers don’t carry sauces and seasonings. Hard to believe.

 

Retailers Selling Complementary Products
Complimentary products to barbecues

The importance of warmth and ambiance is clear; fire pits and outdoor fireplaces are sold by 88% and 85%, respectively, of barbecue retailers.

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

Thirty-four percent of barbecue retailers don’t put on cooking demonstrations of their products. Harder to believe.

Frequency of Cooking Demonstrations
Frequency of cooking demonstrations

Out of sight, out of mind. Only 36% of barbecue retailers provide cooking demonstrations on a weekly basis.

 

Which Days of the Week Are You Closed?
Additional service provided

Only 10% of Barbecue Retailers remain open seven days a week.

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

The percent of barbecue retailers who sell barbecues over the Internet has increased over the past year, from 18% to 23%.

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

The percent of barbecue retailers who limit their sales to their own market area has increased over the past year from 15% to 18%.

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

Eighty-nine percent of barbecue retailers tell us that they are feeling an impact from other retailers selling into their market area.

 

More Industry Data

2018 April Business Climate

In early May, Hearth & Home faxed a survey to 2,500 specialty retailers of hearth, patio and barbecue products asking them to compare April 2018 sales to April 2017. The accompanying charts and selected comments are from the 208 useable returns.

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2018 March Business Climate

In early April Hearth & Home sent a survey to 2,500 specialty retailers of hearth, patio and barbecue products, asking them to compare March 2018 sales to March 2017. The accompanying charts and selected comments are from the 186 useable returns.

» Continue

2018 February Business Climate

In early March Hearth & Home faxed a survey to 2,500 specialty retailers of hearth, patio and barbecue products, asking them to compare February 2018 sales to February 2017. The accompanying charts and selected comments are from the 172 useable returns.

» Continue