Retail Observer

RETAILOBSERVER.COM AUGUST 2017 50 I f there was a debate in the home furnishings sector about the growth opportunities in the outdoor furniture segment, industry giant, Ashley Furniture Industries closed the book on that discussion when it debuted more than a dozen room settings at the Last Vegas Market last summer. At the time of Ashley's foray into the outdoor segment, Ashley CEO Todd Wanek confirmed the company's belief that not only was the market hot regarding outdoor furniture, but that the time was right for Ashley to enter the market in a significant way. Thanks to Ashley's logistics prowess and the ability to allow dealers to buy in smaller quantities, the company got off to a fast start and has not looked back since. To spearhead the effort, Ashley hired industry veteran Andy Sokol to lead the Outdoor by Ashley initiative. Sokol's stellar career in the outdoor segment spans some three decades in senior management, with leading retailers such as Macy's and Fortunoff, and with key outdoor resources such as Agio. "As always, Ashley's timing was impeccable," noted Andy Sokol, vice president of merchandising/outdoor furniture for Ashley Furniture Industries. With the outdoor segment at some $5 billion at retail and with the outdoor room the most desired room of the home, the timing was perfect for Ashley, a retail, logistics, manufacturing and distribution giant, to enter the game. According to Sokol, more Americans, regardless of age bracket, are living more casual lifestyles and spending more leisure time at home, two factors which have helped fuel the success of the outdoor furniture category. "And as more major suppliers such as Ashley get into the category, we, through our promotion of the segment, are helping to grow the segment at all channels of retail," Sokol said. He added that retailers in general are helping to raise awareness of the category. "Today, you see so many more ads for outdoor furniture than in past years. Retailers are producing and sending more outdoor furniture catalogs than ever before, Internet retailers are touting the category and many other regional or national retailers are giving more exposure to the category and it is all resonating with consumers," Sokol explained. However, Sokol is quick to stress that it is not just heightened marketing and promotions that are fueling category growth. The products themselves continue to improve, are more durable, better- looking, and more widely available. "Here at Ashley, whenever we enter a category, we not only want to dominate it, we also want to make the products in that category the best they can be, and we are doing that," Sokol said. "We are constantly upgrading finishes, manufacturing processes, fabrics and so much more," he said. Commenting on the benefits to furniture and appliance retailers adding outdoor furniture, Sokol said, "The biggest immediate benefit are incremental sales." He pointed out that since the retailer already has the physical selling space, trucks, delivery and sales personnel, there really is no incremental cost of business other than the actual product. "The infrastructure for the retailer is already in place. All he or she has to do is bring the products in and turn on the switch," Sokol explained, adding. "The retailer who does this is not adding cost, he is adding sales and profit." Sokol pointed to PC Richards and Sons, a 107-year-old appliance chain on Long Island, NY, as just one example of a retailer who hit pay dirt by adding outdoor furniture. When asked for a list of actions retailers need to take to be successful in the category, Sokol said that firstly, they need to show their customers that they are in the outdoor business. By that, he meant that they need to floor enough goods to be significant. Then, they need to floor the goods in a visible part of the store. Next, they need to show consumers that they are knowledgeable and understand the category. "Today's consumers are smart and do their homework, so it is important that when they come in with questions, the retailer can answer them. Sokol credited Ashley's vast network of sales professionals, which the company calls marketing specialists, for providing top-notch training and product education to its retail customers. Finally, Sokol advises retailers just getting into the category not to panic in the event of a harsh winter or an unusually rainy spring. "Selling outdoor furniture is like baseball. It is not about how you start the season, it is all about how you finish," he said. Mike Allen Furniture Trends OUT (AS IN OUTDOOR FURNITURE) IS IN (AS IN BIG TIME) Part II E. Michael Allen, VP of furniture and bedding, BrandSource RO

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