Retail Observer

RETAILOBSERVER.COM MAY 2017 52 A s more consumers open their eyes — and ultimately their wallets — to get in on the outdoor furniture phenomena, the category continues to garner growing attention from suppliers, retailers and the major market centers. Many leading sources, including Casual Living magazine, estimate the category to represent about $5 billion at retail. In fact, a recent survey conducted last year by Casual Living concluded that full-line furniture stores expected double-digit gains — 12% to be exact — from sales of outdoor furniture. According to John Emerick, senior publisher for Casual Living, many Top 100 furniture retailers also confirmed that the category either outperforms or is a top performer when compared to other home furnishing categories in terms of revenue per sq. ft. and profit margins. "This category is affording all distribution channels and all price points with growth opportunities," he said. Further fueling the categories growth is the increasingly strong interest by consumers in the outdoor room. "There's a consumer trend toward the outdoor kitchen or '5th room' as part of the family doing more outdoor entertainment. It's become the preferred spot to entertain family and guests," Emerick said, adding, "And as a result, there's an opportunity to sell the dream. Outdoor furniture is all about sharing time with friends and family and creating great memories," Emerick explained. The interest and excitement surrounding the outdoor furniture segment have not been lost on any of the major home furnishing markets, including Atlanta-based AmericasMart. According to home furnishings veteran Jenny Heinzen York, vice president of home for AmericasMart, "As we all know, the outdoor room is hot. In fact, outdoor living sells homes, and home builders are realizing that it is absolutely vital to offer consumers that space." Heinzen York added, "We have 120 permanent outdoor-specific exhibitors and devote two floors to outdoor furniture, outdoor accessories, rugs, gifts, wall décor and all the other items that enhance the outdoor room." She advised retailers getting into the outdoor category to be mindful that a great outdoor room involves more than furniture. "Retailers can be successful against the big-box retailers by offering unique items and accessories that can range from planters to bird feeders. "People are buying outdoor furniture and outdoor accessories from someone, so if they are not buying them from your store, that is your mistake," she cautioned, adding, "The best ways to be sucessful in this segment are to offer unique products and always remember to sell the story of how outdoor living makes life luxurious, relaxing, and more enjoyable." A major supplier who is now heavily involved in selling outdoor furnitrure is Klaussner. When making a bid for share of the outdoor furniture segment in 2014, the company hired outdoor furniture veteran Gary McCray as president of Klaussner Outdoor. McCray said that for years, the market for outdoor furniture was underserved and now, the industry has some catching up to do to keep up with growing demand. "And the industry has done a good job, not only of catching up, but in developing new materials, new looks, new technologies and, of course, better fabrics," McCray explains. McCray said that the opportunities for furniture retailers to expand into outdoor furniture are outstanding, especially for retailers who can work the category all year long. "While some retailers are going to look at outdoor furniture as a seasonal sell, we try and encourage them to sell it all year long, then adjust the floor space in whatever may be their off season. Like other successful suppliers, McCray advises retailers to have an assortment that is deep and broad enough to show customers a good sample of the possibilities available to them. "A retailer need not have a huge display, but does need something large enough — maybe six to eight assortments to show the choices in wicker, aluminum and wood," McCray explained. He also stressed that retailers need not to feel they should only carry low-end or high-end goods. "You don't have to try to be all things to all customers. Know your customer base and then plan your floor accordingly," McCray advised. McCray also stressed the importance of being knowledgeable about the products. To help retailers, Klaussner, as part of Klaussner University, offers training on the outdoor products it makes and sells. Finally, McCray cautions retailers to allow plenty of time to plan their outdoor programs. "They should start in September for the next selling season. That gives them and the supplier enough time to do everything properly," he said. Looking ahead, McCray is optimistic for the future of the category. "Consumers are focusing on their homes and their outdoor rooms and that bodes nothing but good things for outdoor," McCray commented. Mike Allen Furniture Trends OUT (AS IN OUTDOOR FURNITURE) IS IN (AS IN BIG TIME) E. Michael Allen, VP of furniture and bedding, BrandSource RO

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