2018 Buyer's Guide – Hearth Data
Note: The estimate of hearth specialty retailers in the U.S. is derived from Hearth & Home’s circulation database. All other data are from recent surveys.
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| ▲ | Hearth Specialty Retailers - U.S. |
2,906 |
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| ▲ | Specialty Retailer Gross Revenues – Hearth products and accessories |
U.S. |
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| ▲ | Percent of total hearth revenues represented by hearth accessories |
12% |
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| ▲ | Indoor selling area (median sq. ft.) |
4,235 |
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| ▲ | Indoor selling area devoted to hearth products in season (median sq. ft.) |
2,374 |
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| ▲ | Percentage of retailers who opened a new store in 2017 |
1% |
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| ▲ | Percentage of retailers who plan to open a new store in 2018 |
1% |
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| ▲ | Average number of units on the |
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| ▲ | Average number of years retailing hearth products |
26 |
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| U.S. Sales of Hearth Products Year-to-Year Sales Change |
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Following two dismal years, sales of hearth products roared back with a strong 11% increase. |
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| Hearth Retailers’ Product Mix | |||
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| Product Category | % Retailers Selling | ||
| Hearth | 54% | ||
| Hearth | Barbecue | 27% | |
| Hearth | Barbecue | Patio | 14% |
| Hearth | Patio | 5% | |
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At 54% there are far too many hearth retailers who are not diversified. |
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| Retailers’ Market Area | |
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Sixty-three percent of hearth retailers work in a population area under 250,000 people. |
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| Total Retail Sales for All Products 2017 |
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Fifty-six percent of hearth retailers gross between $1 million and $5 million. |
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| Retail Sales of Hearth Products and Hearth Related Accessories 2017 |
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Thirty-nine percent of hearth retailers have sales of hearth products and accessories over $1 million. |
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| Years Retailing Hearth | |
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Thirty-four percent of hearth retailers have been in business over 30 years. |
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| Number of Retail Stores Operated | |
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Nineteen percent of hearth retailers have more than one store. |
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| Service Contracts | |
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For most hearth retailers (70%), a service contract has no appeal. |
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| Outlook for Selling Hearth Products | |
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Sixty-eight percent of hearth retailers expect business to be better in 2018 than in the prior year. |
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| United States Wood Stove Sales |
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For wood stoves, steel remains the material of choice (56%), freestanding is still the preferred type (63%), and non-catalytic is the technology of choice (83%). |
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| United States Gas Stove Sales |
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For gas stoves, cast iron is the favored material (65%), fireplace inserts and freestanding units are equally preferred (50% & 50%), and direct-vent is the preferred technology (92%). |
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The four charts below show 2017 specialty retail sales to retail customers, new housing contractors, and remodeling contractors for the indicated products. |
| Wood Stove/Insert Sales 2017 |
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| Wood Fireplace Sales 2017 |
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| Gas Stove/Insert Sales 2017 |
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| Gas Fireplace Sales 2017 |
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| Percent of Hearth Business by Category at Retail | |
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In the hearth specialty channel, sales of vented gas products have just about reached 50% of the market. Wood appliances represent 28% of the market, and pellet products 12%. |
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| Retailer Primary Focus | |
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Forty-six percent of hearth retailers have yet to diversify, 23% sell hearth and barbecue, and 12% sell hearth, patio and barbecue. |
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| Expected Purchases for the 2018 Season | |
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Sixty percent of retailer hearth purchases occur in the last half of the year. |
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| Fireplace Sales
(Included Add-ons) |
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There appears to be only slight interest in fireplace surrounds (25%) and mantels (19% ) to accompany the sale of a fireplace. |
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| Gross Revenue by Category 2017 |
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The average hearth retailer receives 72% of his/her income from hearth products; barbecue and “other” are the next main sources of revenue. |
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| Average Price Point | ||
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| Clean-burning Fireplaces | $4,750 | |
| Pellet Inserts | $3,765 | |
| Vented Gas Fireplaces | $3,608 | |
| Vented Gas Inserts | $3,442 | |
| Pellet Stoves | $3,292 | |
| Zero-Clearance Fireplaces | $3,052 | |
| Wood Inserts | $2,876 | |
| Vented Gas Stoves | $2,705 | |
| Wood Stoves | $2,446 | |
| Vent-free Gas Fireplaces | $1,717 | |
| Vented Gas Logs | $1,346 | |
| Electric Fireplaces | $1,108 | |
| Vent-free Gas Logs | $915 | |
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Clean-burning fireplaces are the most expensive hearth products ($4,750), with pellet inserts ($3,765) and vented gas fireplaces ($3,608) in second and third place, respectively. |
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| Overall Product Sales 2017 (compared to 2016) |
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It was a good year for Vented Gas Fireplaces, Stoves, and Inserts, as well as Pellet Stoves. |
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| Installation Backlog Days 2017 |
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Backlogged days usually peak in November. In 2017, the average hearth dealer was 17 days behind in that month. |
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| Hearth Appliances Replacing Existing Hearth Products 2017 |
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In 2017, 36% of hearth product sales were to replace an inefficient wood fireplace, and 25% were to replace a pre-EPA stove. |
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| Hearth Products Installations How They Are Handled |
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The majority of hearth installations (66%) are handled by the owner or employees of the store. |
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| Hearth Accessories Percent of Hearth Revenues |
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Twenty-two percent of hearth retailers receive over 10% of their gross revenue from hearth accessories. |
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| New Installations vs. Replaces Existing Hearth Products | |
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Sixty percent of hearth product sales were for new installations. |
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