Let’s Take the Party Outside!

2. Let’s Take the Party Outside! • As the economy improves, people are upgrading their homes; and an outdoor living space, at 92%, was rated second most popular in the 2014 Residential Landscape Architecture Trends Survey. Gardens and landscaped spaces were first, at 94.2%. • Landscape architects participating in the survey said that the 5 outdoor elements most in demand were lighting, 98.3%; seating/dining areas, 97.7%; fire pits/fireplaces, 95.4%; grills, 94.3%; and installed seating, 89.6%. • The survey also found the most popular outdoor structures were terraces/patios/decks, 97.7%; fencing/gates, 88.5%; pergolas, 82.8%; decks, 82.3%; and ornamental water features, 81.6%.

3. A Market on the Move • According to Casual Living magazine’s 2013 Universe Study, outdoor furniture had its biggest growth spurt since the recession from 2011 to 2012, when retail sales increased 5.3%, from $3.8 billion to 4.0 billion. The increase for 2013 was just 1.3%. • The US outdoor furniture market is forecast to increase to more than 5.0 billion by 2017. Metal outdoor furniture is expected to experience the highest compounded annual growth rate (CAGR), or 6.2%, through 2017. • The 3 top-selling outdoor furniture for 2013 were dining sets, 49%; conversation/chat groups, 23%; and other seating 13%. Most sales occurred at discount department stores, 27%; home improvement stores, 24%; and specialty stores, 13%.

4. Outdoor Furniture Favorites • Sales of the top 5 furniture categories drove 2012’s significant growth: dining sets, 4.6%; conversation/chat groups, 6.2%; other seating, 5.0%; shade products, 6.4%; other furniture, 6.0%. For 2013, none of the 5 recorded more than a 2.2% increase: conversation/chat groups and shade products. • A 2013 study found that 34% of consumers preferred to buy outdoor dining sets at lifestyle furniture stores, including Ikea, Pottery Barn, West Elm and Crate & Barrel. Generation X and Y adults were even more attracted to these specialty stores, at 37% each. • Discount department stores and home improvement centers sold approximately 50% of all dining sets, conversation/chat groups, other seating and other furniture during 2013. For shade products, the top sales channels were home improvement centers, 25%, and warehouse clubs, 24%.

5. Consumers’ Choices for Outdoor Living Spaces • The 2013 Outdoor Decorating Survey found that 55% of consumers surveyed said they already had an outdoor room, 17% were actively creating an outdoor room, 26% would love to add an outdoor room and just 2% weren’t interested in an outdoor room. • Results from the 2014 Outdoor Decorating Survey were very similar, with more than 50% already enjoying an outdoor room. A larger percent, 21%, were actively creating an outdoor room, but fewer wanted an outdoor room, at 21%. • For 2013, consumers said the primary products in their outdoor spaces were a grill, 75%; outdoor dining set, 50%; outdoor lighting, 45%; other chairs, 42%; shade product, 34%; bistro set, 29%; and fire pit, 27%.

6. Traditional Furniture Stores Take Their Share • According to Casual Living magazine’s 2013 Furniture Store Study, 18% of traditional furniture stores offer outdoor furniture, but the category accounts for just 2% of sales. The median number of brands in stock at each store was 4. • Of all traditional furniture stores responding to the survey, 100% said they offer outdoor furniture during May, June, July and August. More than 55% carry outdoor furniture during March and September, 86% during April and none during the 4 winter months. • The top 5 outdoor furniture features that traditional furniture stores promoted were style and design, 92%; durability, 77%; benefits of the outdoor room, 69%; performance fabrics, 62%; and luxury offerings, 62%.

7. Retailers Review • As shown on page 2 of the Profiler, discount department stores and home improvement stores sell the majority of outdoor furniture. These include Walmart, Target, Sears, Macys, Kohl’s, Lowe’s and The Home Depot. Consumers also shop at Sam’s Club and Costco. • Bed, Bath & Beyond, Ikea, Crate & Barrel, Pottery Barn, Pier 1 and Williams Sonoma are many of the major specialty stores that also offer outdoor furniture selections. • Five regional outdoor furniture stores include Family Leisure, with 9 stores in the Midwest/South; Fortunoff Backyard Store, 24 stores in the Mid-Atlantic and Florida; Patio Furniture Plus, 5 stores in Southern California; and Patio.com, 11 stores in the Mid-Atlantic and Florida.

8. Advertising Strategies • Help furniture stores and outdoor furniture stores plan ahead for the 2015 season with various promotions, such as a specially priced package of furniture and accessories for homeowners with a new deck or patio. • Suggest outdoor furniture retailers produce TV commercials during April 2015, featuring testimonials from satisfied 2014 customers for use during the height of the sales season, May, June, July and August. • Recommend that outdoor furniture retailers partner with an outdoor decorating designer to offer a free evaluation and plan with a qualifying purchase.

9. Social Media Strategies • Since women are likely to be the primary influencer of outdoor furniture purchases, retailers should include Pinterest among their social media strategy. Pinboards can be created for each of the furniture categories as well as examples of complete furniture/accessories ensembles. • Retailers can write articles and/or blog entries on each of the 5 outdoor furniture features in this Profiler, which is the kind of relevant content that attracts consumers, and then promote links to that content on their Facebook and Twitter page and any other social media platforms. • As part of a partnership with an outdoor decorator, produce a number of videos featuring him or her providing insights about specific furniture pieces, complementary accessories and lighting and outdoor entertaining ideas.