Push mower sales stall; riding mowers surge

Discount Store News, August 22, 1988 by Laura Liebeck

Push Mower Sales Stall; Riding Mowers Surge

The 1988 lawn mower season ended in early June this year, cut short by a devastating drought that parched most areas of the country.

Luckily for most discounters, the better part of the lawn mower season was already winding down by the time the drought became a problem, and only tempered the results for 1988 rather than destroying the season entirely.

"We had one of the best years until [severalweeks ago when the drought took effect," said Stan Gold, seasonal buyer for Gee Bee, Johnstown, Pa. "It's like somebody took a knife and cut off sales of mowers and tractors."

At K mart, mower sales ranged from fair to excellent. Push mower sales were 6 percent ahead of last year, said Robert Armstrong, senior buyer for horticulture, and riding mower sales doubled.

Armstrong said K mart emphasized riding mowers this year through more frequent advertising schedules in both print and TV. K mart expects to beef up the ad program for the 1989 season.

Quality Farm & Fleet, North Muskegon, Mich., had an average year in push mowers and a "really good one" in tractors, said Bruce Darrow, lawn and garden buyer. Ames had "a decent year," said Alan Close, vp, general merchandise manager, hard lines. And at Bradlees, lawn mowers did "OK," said Herb Douglas, vp and general merchandise manager, hard lines.

Overall, lawn mower shipments through May were 90 percent of the 1987 levels, said economist Ray Daniel, senior vice president of the WEFA Group, Bala Cynwyd, Pa.

This year, Daniel projects sales of walk-behind mowers to total 5.5 million units, down from 5.9 million units in 1987, and riding mower shipments should total 1.353 million units, up from 1.325 million units in 1987.

Last year, push mower shipments rose 9.3 percent over 1986 levels and riding mowers were up 21 percent over the year-earlier period.

The best selling mower at discount stores is the basic gas-powered, 3 1/2-horsepower, 20-inch, side discharge model that retails for between $99 and $119. But slowly discounters are finding that consumers are willing to spend more money on mowers with special features that make mowing easier.

In fact, push mowers with oversize rear wheels are gaining momentum in the marketplace since consumers are finding them easier to handle on rocky and hilly terrain. Generally, they retail for 25 percent more than standard mowers, experts report.

Riding mowers are also picking up a lot of steam lately for a variety of reasons: ease of operation, convenience and status. In addition, the price points in many cases are available at a palatable $900 to $1,000. At K mart, a 12-horse-power riding mower sells regularly for $896 and $799 on sale. This model represents 95 percent of K mart's riding mower business.

'88 Drought Takes Its Toll

Although the 1988 lawn mower season may be over--and generally is by July 4 when discounters start marking down product--the effects of the '88 drought will probably be felt next year in bloated inventories and possibly fewer new product introductions.

In addition, price increases of 5 percent to 10 percent are anticipated due to increases in aluminum, steel, plastic and labor costs, according to both discounters and vendors.

While prices may be rising, gross margins are anticipated to stay relatively low, 12 percent to 15 percent overall.

Relatively few design changes are anticipated for 1989, according to three lawn mower vendors producing for the mass market. Some new, more upscale models are being introduced, however.

Murray, for example, the industry's fastest growing lawn mower manufacturer, reported that it will introduce a cast aluminum push mower that will retail for between $400 and $500. The new mower will be Murray's most expensive model and is being added to its catalog to serve mass merchants who are upscaling their selection.

Aircap, which produces lawn mowers under the Mastercut label, went to a two-color package for its mowers that identifies the model, its features and benefits. It added hang tags, revamped the graphics, and added new decals, all to help sell the product, said Richard Hayes, vp, sales and marketing.

The improvements on Homelite products will be very subtle in 1989, said Lee Sowell, product manager for lawn and garden. Among the changes will be new colors for grass clipping bags. In addition, Homelite is adding two new models in 1989, a $599 mower with an electric start and a $559 model with a blade brake clutch.

According to the Outdoor Power Equipment Institute, discount stores, excluding K mart and Wal-Mart (which OPEI classified in the category of "national retailers"), account for 14 percent of all walk-behind mowers sold in the United States, making them the fourth-largest retail outlet for this product. The most popular outlet for the sale of walk-behind lawn mowers are national retailers, with nearly one-third of all sales.

OPEI defines national retailers as Sears, Montgomery Ward, JC Penney, Lowe's, the largest home improvement retailer, Western Auto, K mart and Wal-Mart.