Patio furniture weathers uncertainty with orders up

Discount Store News, Jan 20, 1997 by Richard Halverson

Sunbeam casual furniture is being sold as an operating entity, Oppenheimer emphasized. All seven remaining plants are operating, he said, and,- during the transition to new owners, Sunbeam will remain focused on meeting the needs of its customers.

With estimated sales of $250 million, it would take a major manufacturer to be able to buy Sunbeam's entire casual furniture division, and the new ceo of Sunbeam, Al Dunlap, who is paring the company by 50%, has said he wants to sell the division as a whole rather than in parts.

The uncertainty has shifted business elsewhere, and several competitors said they have picked up incremental increases of about 10% because of such switching.

Grosfillex, Robesonia, Pa., has seen about a 2% gain in sales because a couple of discounters switched from Sunbeam, said Scott Crumrine, vp of sales and marketing. U.S. Leisure, Carmel, Ind., has seen an incremental sales increase in resin of about 12%, said Bruce Masden, vp of sales and marketing. Syroco, Peabody, Mass., has seen some increase in aluminum sales, said Norbert Lyons, vp of sales.

At Bemis, national sales manager Michael Gerard said that he doubts very much if his recent increase in sales stems from the Sunbeam situation.

Because of the consolidation among mass merchants, vendors will wind up with fewer, but much larger, retail customers, Gerard predicted.

Since no one vendor is large enough to handle the entirety of the business, four or five of the biggest will split the business of giant retailers, Gerard predicted.