Backyard Bonanza Of those patio retailers responding to Hearth & Home’s January 2017 survey, 41% reported increased sales during 2016, compared to 2015. Sales were the same for 33% of survey participants, and decreased for 26%. In a later Hearth & Home survey (March 2017), just 10% of US and Canadian patio retailers said their March 2017 sales exceeded March 2016 sales, as March 2017 patio products sales declined 3% when compared to March 2016. The March 2017 numbers were much better for US and Canadian barbecue retailers, with 23% reporting an increase in sales, and 46% of US and Canadian hearth retailers experiencing a sales increase.

Relaxing in the Backyard Retreat According to the Houzz 2017 US Landscape Trends Study, the top outdoor purchases among homeowners planning an outdoor renovation were outdoor lounge furniture, 36%; fire pit, 32%; and outdoor dining furniture, 28%. The next new outdoor living elements for homeowners’ outdoor renovations were bench(es), 26%; grill, 20%; built-in seating, 12%; patio heater(s), 10%; built-in cabinetry/storage, 8%; sink(s) and plumbing fixtures, 5%; and refrigerator, 5%. Of those homeowners who have completed or are currently involved in or planning an outdoor project during 2016–2017, a patio/terrace was the top outdoor structure, at 39%; followed by arbor, gazebo, pergola or trellis, 26%; and deck, 20%.

Moderate Furniture Growth Hearth & Home reported in its March 2017 issue that US patio furniture sales increased 3%, which continues a declining, but still positive, trend, from +13.3% for 2014 and +6.4% for 2015; however, sales decreased 19.9% during the 2008–2013 period. Of those patio retailers responding to Hearth & Home’s January 2017 survey, 37% stated that their 2016 average sales ticket was $1,001–$2,000, followed by $200–$1,000, 27%; $2,001–$4,000, 23%; and more than $4,000, 13%. Just a few years ago, patio retailers said big box and mass merchants were their toughest competition, but according to the January survey, it is now Internet retailers, at 42%, with big box stores at 24% and mass merchants just 8%.

The Attraction of the Flame In another Hearth & Home January 2017 survey to barbecue products retailers, total 2016 sales declined -0.6%, which is better than 2015’s -1.8%; however, 43% expect 2017 sales to increase less than 15% and 18% expect an increase of at least 15%. Most, or 31%, of barbecue products retailers said the economy was the #1 reason for decreased 2016 sales, with mass merchants, 19%; other specialty retailers, 13%; and the Internet and the weather, 6% each. Of 6 barbecue product categories, only pellet grills, at 14%, smokers, at 7%, and charcoal grills, at 0.5%, registered increased sales during 2016. Gas grills sales decreased 3.1%; infrared grills, 0.8%; and kamados, 5.5%.

The Future Is Outdoors Among many sources forecasting the future of the furniture and barbecue sectors, Technavio projects the outdoor furniture and accessories sector to increase at a compounded annual growth rate (CAGR) of 4.02% by 2021. Freedonia Group’s forecast is 4% through 2017 for outdoor furniture and grills, which include patio heaters and accessories, such as umbrellas, covers, cushions and grilling utensils. More consumers are expected to purchase more than one grill, as well. Casual Living and Easy Analytic Software Inc. predict a 22.3% increase in grill sales from $2.7 billion to $3.3 billion during the 2016–2021 period, with North Dakota and the District of Columbia generating the largest increase by state.

Advertising Strategies Outdoor furniture, barbecue and hearth retailers may find it beneficial to co-promote with designers, builders and/or landscapers a comprehensive and discounted package of design, products, building and installation, saving consumers time and money. To counter online competition, patio furniture retailers can promote not only free delivery, but also free assembling and placement as well as offering a furniture assembly service for online purchases of furniture in a kit. With more consumers showing an interest in purchasing multiple grills for different purposes, these retailers can promote or offer discounted bundles, such as a traditional grill and a smoker.

New Media Strategies Invite a local chef who is a grill expert to appear in a series of instructional and/or cooking videos for posting to the store’s Website and social media pages. Ask social media visitors and current/past customers to post videos of their grilling tips and recipes. Ask everyone to vote on the best and provide an appropriate prize to the winner. Use geo-location marketing techniques to reach consumers within a mile or two of the store, and invite them to take a load off their feet and relax on a patio furniture set in front of the store and/or a free hamburger, hotdog or other grilled item during the next 10 minutes.