Hearth & Home June 2017

Acero from Summer Classics.

2017 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.

2,308

Specialty Retailer Gross Revenues - Patio furnishings and accessories

U.S.

<$25,000

12%

$25,000 - $99,999

15%

$100,000 - $249,999

9%

$250,000 - $499,999

15%

$500,000 - $999,999

10%

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

13%

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

21%

$5,000,000 - $9,999,999

5%

Average Average sales ticket (U.S.) in 2016

$2,362

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

65%

Indoor patio selling area (median sq. ft.)

6,592

Outdoor patio selling area (median sq. ft.)

2,105

Average number of manufacturers from whom retailers purchased furniture in 2016

7

Patio Retailers operating more than one store

19%

Patio sales made up by special orders in 2016

41%

Average number of years retailing patio furnishings

24

U.S. Sales of Patio Furnishings
Year-to-Year Sales Change
U.S. Sales of Patio Products Year to Year 2005 to 2016

Gains made in the last three years should have solidified, to a great extent, patio retailers throughout the country.

Patio Retailers’ Product Mix
Product Category % Retailers Selling
Patio 18%
Patio Hearth 3%
Patio Hearth Barbecue 64%
Patio Barbecue 15%

Two-thirds of patio retailers sell all three categories – patio, hearth and barbecue.

Retailers’ Market Area
Retailers' Market Area

Sixty percent of patio retailers are in population areas greater than 250,000.



More than (65%) of reporting patio furnishings retailers also sell hearth products.



Patio Products Selling Area
patio products selling area

Approximately 50% of patio retailers have in excess of 5,000 sq. ft. of selling space for the category.

Retail Sales of Outdoor Furniture and Related Accessories
2016
retail sales of outdoor furniture and related accessories

Thirty-nine percent of patio retailers gross in excess of $1 million in sales of outdoor furniture and accessories.

Years Retailing Patio Furnishings
Years retailing patio furnishings

More than half (55%) of patio retailers have been in the business for over 20 years.

Number of Patio Furnishings
Retail Stores Operated
Number of Stores Operated

Nineteen percent of patio retailers operate more than one store.

Derivation of Gross Revenues

Outdoor furniture brings in slightly under 50% of gross revenues for patio retailers.

Patio Retailer Margins in
2016 – Actual vs Target
Patio Retailer Margins Actual vs Target

Thirteen percent of patio retailers surpassed their gross margin target percentage.

Compared to a Year Ago
Retailers Up, Down, Same

Seventy-four percent of patio retailers did the same, or better, in 2016 than in 2015.

 

Average Gross Revenue by Category
2016
gross revenue by category

The average patio retailer brings in about the same level of revenue in hearth products as in outdoor furniture.

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

For 65% of patio retailers, special orders bring in at least 25% of their patio revenues.

Regional Look
at 2016 vs. 2015 Patio Sales
special orders as percent of patio revenues

Westerners like to strut their stuff, so they should be thrilled with 75% of retailers posting a positive year. Canadians, on the other hand, are suffering from a currency differential that makes patio furnishings imported from the States just too expensive for most consumers.

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

Eight percent of patio retailers are doing a minimum of 6% of their business over the Internet.

Limit Internet Patio Sales

Of those retailers who do sell patio furnishings over the Internet, 35% limit those sales to their market area, meaning, of course, that 65% do not.

Purchase From How Many Manufacturers?
purchase from how many manufacturers

Thirty-seven percent of patio retailers purchased from at least nine manufacturers.

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

Compared to three years ago, 28% of patio retailers are purchasing from fewer manufacturers, while 18% are purchasing from more.

 

Primary Business of Patio Retailers
actual gross margin

Forty-four percent of patio furnishings retailers say that category is their primary business, while 33% indicate it’s hearth products, and 8% that it’s an interior furniture store.

Actual Gross Margin
actual gross margin

If a 40% margin is what a specialty retailer really needs to flourish, then patio retailers are doing quite well; 51% of patio retailers are doing a bit better than that.

Retailers Who Have Placed or
Plan to Place Early-buy Orders
Retailers who have placed or plan to place early-buy orders

Only 27% of patio retailers do not plan to purchases early-buy orders.

Change in Early-buy Orders
2017
purchase from how many manufacturers compared to 3 years ago

Twenty-eight percent of patio retailers plan to decrease their early-buy orders.

 

Toughest Competition
toughest competition

Forty-two percent of patio furnishings retailers now feel that Internet sales are their toughest competition.

Percent of Retailers
Closed on Individual Days of The Week
toughest competition

Thirty-three percent of patio retailers stay open seven days a week, while 65% close on Sunday.

Retailers’ Expectations
Sales Outlook for 2017 vs. 2016
retailers' expectations sales outlook for 2016 vs 2015

Sales Expectations for 2016

Southern patio retailers are showing the most optimism regarding sales in 2017, but every region is predicting a growth year.

Retailers with a BETTER
2016 than 2015
Retailers with a Better 2016 than 2015
Retailers with a 2016 the
SAME as 2015
Retailers with the same 2016 than 2015
Retailers with a LOWER
2016 than 2015
Retailers with a lower 2016 than 2015

Eighty-two percent of patio retailers who had a better 2016 than 2015 tell us this year will be a better sales year than in 2016. Such optimism is not to be found with retailers whose 2016 sales were the same as 2015, nor with retailers whose sales were the same.

Kingston dining from Ratana.

More Industry Data

2017 May Business Climate

In early June, Hearth & Home faxed a survey to 2,500 specialty retailers of hearth, barbecue and patio products, asking them to compare May 2017 sales to May 2016. The accompanying charts and selected comments are from the 196 useable returns.

» Continue

2017 April Business Climate

In early May, Hearth & Home faxed a survey to 2,500 specialty retailers of hearth, barbecue and patio products, asking them to compare April 2017 sales to April 2016. The accompanying charts and selected comments are from the 232 useable returns.

» Continue