Fashion-propelled big '85 seen for fast-growing patio furniture

Discount Store News, Sept 17, 1984

Increased consumer demand for patio furniture will combine with a much greater selection of fashion-oriented styles in 1985 to make it a landmark year for the fast-growing category.

Many buyers are projecting as much as a 25% sales growth in the category in the company year.

"Patio furniture is as exciting as any business in retailing now," said Richway buyer Perry Reynolds. "Consumer interest has never been higher and there is a simultaneous explosion in color, design and fabrics."

An Ames spokesman said that 1984 "has been a good year in lawn and garden and a great year in patio furniture." He added, "It is too early to say anything about 1985 except that patio furniture will overshadow all other lawn and garden categories again."

Price points will be going up in 1985, according to most buyers. Richway's Reynolds said: "When I see prices of $1,250 in specialty stores and $800 in department stores, I think my customers will be willing to pay $500 for a good furniture set on sale"

Changing Prices

Zayre's Nils Pederson said that his 1985 price points would exceed his $300 maximum of 1984, but he would not say by how much.

One manufacturer at the 1984 Hardware Show said that he had received "many serious inquiries from discounters on furniture sets with retail price points of $399 to $499." Said Zayre's Pederson, "The consumer is looking for better quality and more style."

Most buyers cited the upturn in the economy and the fashion improvements in patio furniture as reasons for the bright sales picture. But buyers were less interested in figuring out the reasons for the rush and more concerned with making certain they would have enough pieces to meet consumer demand next season.

Fishers Big Wheel buyer John Tomasetti said, "I had my best hardware show ever this year because I achieved my main objective--I committed to a lot of imported patio furniture. A lot of suppliers had trouble keeping up with demand last year, but we had committed early for all that we needed and were in good shape."

While a few buyers said they were still doing a solid business with the single chair as a $10-and-under promotional item, all agreed that the future was in the furniture set containing chairs, table and an umbrella, with steel and aluminum construction still leading over PVC pipe.

Richway's Reynolds said: "We had three aluminum sets and one PVC in 1984. In '85, we'll probably have two PVC sets out of a total of six to eight sets."

A manufacturer who showed one aluminum set at the 1983 Hardware Show was back this year with seven aluminum sets.

One buyer said his customers were resistant to PVC because they were afraid that after a few years of sitting in the sun, the PVC would lose its elasticity and crack. He added, "They're right."

Buyers are still concentrating on imported furniture, but one domestic PVC manufacturer was optimistic because the "price spread between imported and domestic PVC furniture is starting to close, thanks to recent freight charge increases." He added that a shipping container shortage that slowed some deliveries of imports in 1984 would probably help to shift some chains from imports to domestic furniture. "At least they know they'll be able to get the domestic goods." According to this manufacturer, comparable five-piece furniture sets would cost a buyer $169 from Taiwan and $200 from his company.

Buyers from Richway and Van Leunen's said that the replacement cushion business was very healthy. "My replacement cushion business grew by better than 50%" said Richway's Reynolds. "It would've been even better if I had more cushions to sell." He credited the improved fabrics and fashion qualities with boosting this end of the business.