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.
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| ▲ | Patio Furnishings Specialty Retailers - U.S. |
2,308 |
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| ▲ | Specialty Retailer Gross Revenues - Patio furnishings and accessories |
U.S. |
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| ▲ | Average Average sales ticket (U.S.) in 2016 |
$2,362 |
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| ▲ | Percent of Patio Specialty Retailers with indoor and outdoor patio selling areas |
65% |
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| ▲ | Indoor patio selling area (median sq. ft.) |
6,592 |
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| ▲ | Outdoor patio selling area (median sq. ft.) |
2,105 |
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| ▲ | Average number of manufacturers from whom retailers purchased furniture in 2016 |
7 |
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| ▲ | Patio Retailers operating more than one store |
19% |
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| ▲ | Patio sales made up by special orders in 2016 |
41% |
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| ▲ | Average number of years retailing patio furnishings |
24 |
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| U.S. Sales of Patio Furnishings Year-to-Year Sales Change |
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Gains made in the last three years should have solidified, to a great extent, patio retailers throughout the country. |
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| Patio Retailers’ Product Mix | |||
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| Product Category | % Retailers Selling | ||
| Patio | 18% | ||
| Patio | Hearth | 3% | |
| Patio | Hearth | Barbecue | 64% |
| Patio | Barbecue | 15% | |
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Two-thirds of patio retailers sell all three categories – patio, hearth and barbecue. |
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| Retailers’ Market Area | |
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Sixty percent of patio retailers are in population areas greater than 250,000. |
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More than (65%) of reporting patio furnishings retailers also sell hearth products. |
| Patio Products Selling Area | |
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Approximately 50% of patio retailers have in excess of 5,000 sq. ft. of selling space for the category. |
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| Retail Sales of Outdoor Furniture and Related Accessories 2016 |
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Thirty-nine percent of patio retailers gross in excess of $1 million in sales of outdoor furniture and accessories. |
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| Years Retailing Patio Furnishings | |
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More than half (55%) of patio retailers have been in the business for over 20 years. |
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| Number of Patio Furnishings Retail Stores Operated |
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Nineteen percent of patio retailers operate more than one store. |
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| Derivation of Gross Revenues | |
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Outdoor furniture brings in slightly under 50% of gross revenues for patio retailers. |
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| Patio Retailer Margins in 2016 – Actual vs Target |
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Thirteen percent of patio retailers surpassed their gross margin target percentage. |
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| Compared to a Year Ago Retailers Up, Down, Same |
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Seventy-four percent of patio retailers did the same, or better, in 2016 than in 2015. |
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| Average Gross Revenue by Category 2016 |
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The average patio retailer brings in about the same level of revenue in hearth products as in outdoor furniture. |
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| Special Orders as Percent of Patio Revenues | |
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For 65% of patio retailers, special orders bring in at least 25% of their patio revenues. |
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| Regional Look at 2016 vs. 2015 Patio Sales |
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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. |
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| Percent of Business Over the Internet |
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Eight percent of patio retailers are doing a minimum of 6% of their business over the Internet. |
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| Limit Internet Patio Sales | |
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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. |
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| Purchase From How Many Manufacturers? | |
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Thirty-seven percent of patio retailers purchased from at least nine manufacturers. |
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| Purchase From How Many Manufacturers Compared to Three Years Ago? |
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Compared to three years ago, 28% of patio retailers are purchasing from fewer manufacturers, while 18% are purchasing from more. |
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| Primary Business of Patio Retailers | |
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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. |
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| Actual Gross Margin | |
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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. |
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| Retailers Who Have Placed or Plan to Place Early-buy Orders |
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Only 27% of patio retailers do not plan to purchases early-buy orders. |
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| Change in Early-buy Orders 2017 |
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Twenty-eight percent of patio retailers plan to decrease their early-buy orders. |
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| Toughest Competition | |
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Forty-two percent of patio furnishings retailers now feel that Internet sales are their toughest competition. |
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| Percent of Retailers Closed on Individual Days of The Week |
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Thirty-three percent of patio retailers stay open seven days a week, while 65% close on Sunday. |
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| Retailers’ Expectations Sales Outlook for 2017 vs. 2016 |
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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 |
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| Retailers with a 2016 the SAME as 2015 |
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| Retailers with a LOWER 2016 than 2015 |
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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.
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| Kingston dining from Ratana. | |
