Patio furniture, gas grills lead lawn and garden sales - annual report

Discount Store News, July 21, 1986

Patio Furniture, Gas Grills Lead Lawn and Garden Sales

The seeds of fashion and luxury have sprouted in lawn and garden departments, as discount department store merchants continue to concentrate on high-ticket patio furniture and full-feature gas grills.

At many chains, the move toward lifestyle merchandise and presentations is at the expense of gardening.

But the payoff is clear: Some chains are successfully moving up in price points and have yet to find the ceiling for a few categories.

Paced by grills and outdoor furniture, lawn and garden department sales are continuing to grow for discount department stores.

While still experimenting with higher price points in the luxury categories, low prices sometimes remain the key to sales for some goods.

Stick goods such as hoes and shovels, for example, are price-driven. Especially as new home owners buy a number of tools at once. Therefore, low-priced imports make up about 10% of the assortment.

Discount department stores are clinging to an estimated 43% market share of the lawn and garden business. The segment is currently losing market share as other retailers make larger sales gains.

Sales Rise

For example, chain stores and mass merchandisers' sales of lawn and garden equipment rose 123.7% from 1979 to 1986, according to Greenridge & Associates, a market research firm in Evergreen, Colo. However, the home center, hardware store and lumber yard segment posted sales gains of 138.5% during this period.

Virtually all retailing segments have enjoyed success with grills, and these sales are expected to remain hot.

Gas grills are the big sellers, but are not always the only star of the category.

Covered charcoal grills have made an unexpected comeback in scattered markets. Some buyers attribute the resurgence of interest in charcoal grills to prices that are much lower than the tickets for gas models.

A survey of recent circulars revealed that discounters are offering grills priced at close to $200, although they featured models at under $100.

Target offered an Arklamatic dual burner gas grill with automatic ignitor for $89.99, down from a regular price of $119.99. A more fully featured Arklamatic grill was marked down from $179.99 to $134.99.

Zayre advertised a Sunbeam post grill for $116, marked down from $149.99, and a Structo deluxe grill for $197. The discounter hits a low price point with a Sunbeam post gas grill for $79.84.

Gold Circle recently advertised The Turco Futura Magnum gas grill at $199.88.

In lawn furniture, PVC-coated metal furniture is still popular, and, the demand for redwood is declining. Many chains are continuing to add lines, often choosing to stock more high-end merchandise.

Target advertised the Sun Terrace patio table and four chairs, with aluminum frames and vinyl strapping, for $119.95, down from a regular price of $159.95. A wrought-iron mesh set with table and four chairs was marked down from $199.95 to $149.95.

Venture offered a five-piece set with glass topped table and aluminum chairs with cushions for $229.99 on ad. An umbrella is optional for $89.99.

At Gold Circle, recent ads offered a Baypoint patio set with table, four cushioned chairs and umbrella for $399.88, about $200 below suggested retail.