Resin stacks up well against competition - outdoor resin furniture retailing

Discount Store News, August 20, 1990 by Faye Brookman

Resin stacks Up Well Against Competition

Despite uncooperative weather - most of the nation stayed soggy through June - discounters managed to wring out 5 percent to 8 percent partio furniture sales gains over last year's lackluster season.

Fueling growth was increased consumer demand for resin furniture. Moreover, discounters reported squezzing out greater profits in the hotly competitive $1.4 billion category by emphasizing sets rather than pieces, increasing imported offerings and buying more conservatively.

Consequently, they're entering the 1991 season ready to stock up.

Resin will indeed be an area where discounters will shift their dollars. Buyers said 1990 was finally the year mass market consumers came to appreciate the quality and ease-of-care of resin.

"We had an excellent year with resin," confirmed Tom Draves, senior merchandise manager for Jamesway. Although the promotional monobloc chair was the big mover, he noticed more action in chair and table ensembles at the Secaucus, N.J.,-based discounter.

Added a source with a major catalog showroom retailer, "The bright spot this year was resin. Not only did the consumer finally understand its value, but the prices dropped enough to make it affordable. A five-position chair that sold for $59 to $69 bucks before, sells for $29 or $39." His operations featured 19 total assortments; five of those were resins.

Sears even allocated three pages of its spring/summer catalog to resin collections, confirmed a company spokesman.

Resin, according to Mark Kaffee, market manager for Rubbermaid-Allibert, is producing dynamic 50 percent sales gains per year. "Within the next two to three years," he said, "it will have a quarter of the market."

Vendors generally agreed that resin how produces almost 20 percent of the business, behind aluminum's declining 45 percent share. Steel generates 12 percent, wrought iron a stable 9 percent, wood 9 percent and wicker 5 percent.

Within resin collections, Brian Kierman, national accounts manager for Grosfillex, said consumers were selecting items with features rather than the ubiquitous monobloc one-piece offering. Retailers, in an attempt to hop off the promotional treadmill, advertised and displayed more coordinated sets.

With the move to resin, some chains decreased cushion sets - an accessory not always needed by resin users, "Cushion is a misnomer," said Kiernan. "It detracts from the beauty of resin, the fact it needs little care."

Abby Joy, assistant buyer for Rose's, however, noticed the Henderson, N.C.-based chains customers seemed to miss cushion items this year.

Within resin, white remained the most popular selection. However, several retailers think black and white and darker colors will begin to filter into the market next year. "Black and white is doing well in other categories," said Draves of Jamesway. "The big question is whether it will extend to outdoors."

In cushion colors, pastels like blue, gray and peach still dominated the mix. For 1991, some expect to see darker shades like hunter green make a debut.

Buyers agreed the use of the Rubbermaid name, a partnership with Allibert (the Rubbermaid name was stamped on mass market items; Allibert on specialty), helped bring some name brand recognition to the category. "I think people have a high confidence level in the name," Draves said.

Despite robust sales, some chains eschew resin everyone from the local supermarket to home centers sells monobloc chairs. Many use it as a loss leader, just about giving it away. "We don't get into resins," said Don Knight, buyer for Sprouse! "This year we did well with sets, especially one we carried for children."

At other chains, the best selling non-resin products included wood and wrought iron. "Wood is enjoying a resurgence," said the catalog showroom source. "The best is the redwood . . . the California Pearl hasn't take off yet. And there's always a customer for iron."

Within aluminum, the Sunbeam name provided a shot in the arm to the faltering business. "People know Sunbeam for grills and appliances," said one buyer, "and they have a warm and toasty feeling for it." Aluminum sales growth, however, has been declining over the years.

Several firms improved sales of overall furniture by setting up the items earlier than ever. Jamesway, said Draves, had a terrific push from an early bird sale. Some are even keeping patio furniture in stock all year - a move to capitalize on the popularity of Florida rooms and atriums.

Since the season got off to a late start, some held off before slashing prices. "We leave it up our managers, but some of the stores are just now getting the good weather," Knight said.

Although consumers were looking for features, the price declines put the upgraded items within their reach without trading up in price. Joy at Rose's said the chain's best sets were in the $100 range. Jamesway's magic price point was in the $150 to $200 area. Catalogers said their popular price points range up to $400.

As retailers gear up for 1991, most said they'll put more dollars into resin as well as experiment with new colors. To help retailers get greater dollars out of the business, Kaffee said Rubbermaid is making its packaging more educational.