Easy-to-assemble pools make a splash in home centers

Home Channel News, Oct 23, 2000 by Dawn Wilensky

Improved technology has produced pools that DIY customers can install and from which home centers can profit

NATIONAL REPORT -- Above-ground pools, a product common at mass merchandisers and specialty outlets, are starting to attract the interest of some hardware/home improvement buyers.

Improved technology and easy installation have opened the floodgates to a host of affordable products targeting the do-it-yourself customer.

Most above-ground pools can be installed in less than 90 minutes today, without the sand and site preparation that is required for a steel-walled pool. Price points are attractive too, as most above-ground pools retail for between $159 and $1,600, depending on size and depth. Most pools in this classification range from 12 feet wide by 30 inches deep to 18 feet wide by 48 inches deep.

Manufacturers say the category is a natural fit for home centers because DIY customers are confident in their ability to assemble the product. In addition, aboveground pools are a natural complement to home centers' existing pool chemicals and accessories business. It is a high-ticket item that delivers margins up to 35 percent.

All American Home Center has seen its above-ground pool business experience substantial growth over the past few years with the advent of these new products, reported Jill Cheyne-Roy, merchandise manager of the Downey, Calif.-based dealer.

"We have seen the category evolve with easier-to-install and larger-size pools, which have increased our price points. This is good news because it gives us a bigger ring at the register," said Cheyne-Roy.

The independent dealer also has the luxury of being able to devote substantial space to the category in its l75,000-square-foot store. In merchandising the product, he dealer nests its two smaller-sized pools inside the larger one to give customers a birds-eye view of the entire setup.

Creative merchandising is essential, and retailers whose stores lack sufficient area are carving out space in departments such as lawn and garden, outdoor furniture, plumbing and even alongside pool chemicals and accessories.

Furthermore, retailers are using detailed point-of-purchase displays and running a continuous video loop with detailed installation and setup instructions.

"More and more people are purchasing pools that they can take home and put up themselves without contractors. All they need to do is buy it in the store, set it up that day and splash around in it that very afternoon," said Michael Leddy, marketing coordinator at Intex Recreational, based in Long Beach, Calif.

For Intex, its above-ground pool business has exploded from $2 million in 1998 to $51 million in 2000, with revenues of $100 million expected in 2001, according to Matt Legarza, western regional sales manager at Intex.

Driving this growth are two products: the Easy Set Pool and the Family Size Frame Pool.

The walls of the Easy Set pool rise automatically as the pool is filled with water. It is available in 12-foot, 15-foot and 18-foot diameters, it is constructed of triple laminate vinyl, and it retails from $159 to $999. The Frame Pool is assembled by snapping together a series of plastic supports that slide through the top of the liner to form a frame. The product comes in 10-foot, 12-foot and 15-foot diameters and retails from $199 to $359.

The category has also made a splash with Groupe Zodiac, a Cedex, France-based marketer of Zodiac Portable Pools, the flexipool and KD Portable Pools lines in the United States. Prices range from $999 for the flexipool to $1,600 for the KD Portable Pools line. Each package includes a filter, ladder and a natural water purification system.

"Consumers are increasingly attracted to these above-ground pools because they like the flexibility of taking them down and utilizing backyard space for other leisure activities during cold weather months," said Maggie O'Connor, marketing manager for Groupe Zodiac above-ground pools a North America.