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. |
||||||||||||||
|
||||||||||||||||
| ▲ | 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 |
|
|---|---|
|
|
|
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 | |
|---|---|
|
|
|
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 | |
|---|---|
|
|
|
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 |
|
|---|---|
|
|
|
Forty-four percent of patio retailers gross over $1 million in patio products alone. |
|
| 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 |
|
|---|---|
|
|
|
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 |
|
|---|---|
|
|
|
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 |
|
|---|---|
|
|
|
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 | |
|---|---|
|
|
|
In 2015, special orders accounted for more than half of patio revenues for 35 percent of responding retailers. |
|
| Percent of Business Over the Internet |
|
|---|---|
|
|
|
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? | |
|---|---|
|
|
|
Twenty-six percent of patio dealers purchase from more than 10 manufacturers. |
|
| Purchase From How Many Manufacturers Compared to Three 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 | |
|---|---|
|
|
|
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 | |
|---|---|
|
|
|
Manufacturers are smiling, because 88 percent of patio retailers plan to place early-buy orders. |
|
| Change in Early-buy Orders 2016 |
|
|---|---|
|
|
|
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 |
|
|---|---|
|
|
|
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 2015 the SAME as 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.
