john wilson andrew goldstein rebecca marsella helen...

John Wilson, President

Andrew Goldstein, VP of Sales

Rebecca Marsella, VP of Product Development and Design

Helen Ziga, Marketing Manager

75%

25%

2017 Estimated Overall Sales by Online & In Store

Retail

Online

INDUSTRY INSIGHTS

• Steady spending in the Outdoor

Lifestyle Category to generate

between $3.7 - $4.0 Billion in sales.

• Home Centers, Clubs, and

Online/Catalog Merchants grow

their share at the expense of

traditional Mass, Hardware and

select Specialty Retailers.

• Online volume continues to grow and

expand across multiple platforms and

accounts for 25% of all sales.

*SOURCE: Based on Summer Casual Competitive Retail Analysis and various other sources

*NOTE: Estimated online sales for retailer’s with both brick & mortar and online operations aresplit-up.

%

%

%

%

2

33%

30%

22%

12%

3%

2017 Estimated Overall Sales by Retailer Channel

Specialty & Catalogs

Home Centers & Hardware

Mass

Clubs

Other

Total Market SizeUnited States

*SOURCE: Based on Summer Casual Competitive Retail

Analysis and various other sources

%

3

Furniture Type BreakdownUnited States

MARKETPLACE INSIGHTS

• Since 2014, Dining Set SKU count % has shifted down from 52% to 48% while Conversation Sets have gone from 34% to 37%.

• 5 Pc. Conversation Sets continue to grow with Low Dining functionality.

• Sectional Sets are more readily available across all channels with enhanced space saving usage.

44%

4%

15%

37%

2017 Furniture Type

Dining

Bar & High Dining

Bistro

Conversation

46%

48%

3%

3%

2017 Dining Set Configurations

5 Pc

6-7 Pc

9 Pc

Other

7%

44%28%

9%

12%

2017 Conversation Set Configurations

3 Pc

4 Pc

5-6 Pc

Sectional

Fire Pit

Material Insights

• Metal & Wicker combination

usage continues to be the

highest growth category.

• All-Metal and All-Wicker

remain constant with a

decline in Sling.

• Metal material usage favors

Steel vs. Aluminum but

numerous sets incorporate

both.

4

Furniture Material BreakdownUnited States

33%

18%21%

26%

2%

2017 Furniture Styles/Materials

Metal

Metal + Wicker

Wicker

Sling

Wood



5

Retail Price Point BreakdownUnited States

0

5

10

15

20

25

30

35

40

45

50

# o

f Se

ts

Retails

5 Year Price-Point History

2013

2014

2015

2016

2017

2013 to 2017 Retail Insights

• UNDER $500 from 43% to 34%

• BETWEEN $500 -$999 from 36% to 38%

• $1,000 & OVER from 19% to 30%



Millennials

31%

Seniors

12%

Baby

Boomers

30%

GenerationX27%

Seniors

12% 6

The New Rules of RetailSo many choices are available to today’s consumer, that

it is important to create experiences at every level.

Offer a SEAMLESS EXPERIENCE whether brick

& mortar, online, mobile or social media.1Make CONSISITENCY OF SERVICE a priority

by offering convenient returns.2Have PRODUCT INFORMATION available both instore and

online with availability and location information available.3PRICING must be competitive since consumers

are armed with technology to compare pricing.4Understand the RETAIL TRENDS and purchasing

patterns to see what is working for your store.5

Millennials

31%

Seniors

12%

Baby

Boomers

30%

GenerationX27%

7

The New Rules of RetailSo many choices are available to today’s consumer, that it

is important to create experiences at every level.

Identify CUSTOMER BEHAVIORS to find your core audience.6Deliver the “WOW!” FACTOR to offer an in-store

experience to keep the customer coming back.7Create MOBILE MARKETING CAMPAIGNS to

captivate your customers through their phones.8Implement an IN-STORE TECHNOLOGY to enhance staff

engagement with customers and give customers immediate results.9Offer CROSS-CHANNEL PROMOTIONS to offer a reward, discount

or contest entry. This gives the customer a reason to come back.10

8

CUSTOMER EXPERIENCE

Millennials are the largest generation in U.S. history and

they want more technology in brick and mortar retails

stores, restaurants and hotels. Several large companies

have come up with ideas to engage this large segment.

Tommy Hilfiger is giving consumers the ability to share

their new look from the store virtually with their social

networks using iPads.

Ralph Lauren Menswear is inviting their customer to

discover his inner-designer by designing and personalizing

the perfect polo shirt using the iPad floor stand.

Recent consumer data

shows that EXPERIENCE

is the #1 trend in the

United States and store

shopping remains a key

leisure pursuit. Three in

four Americans agree

that is is “fun to browse

stores and see what is

new and different”.

Because of this, we are

seeing online players

opening brick and

mortar stores. Amazon

and Warby Parker are

a few who have opened

stores.

Multi-Configuration with Eclectic Style

Giving the consumer the chance to customize their set

is key. Whether this is choosing cushion colors or

mixing wooden end tables with a wicker chair,

today’s customer wants to be able to create the

look of their dreams.

Hygge

The Danish concept of Hygge is quickly

spreading its warmth around the world. A

calm, comfortable time with people you love.

Often enjoyed with good food and drinks in a

cozy setting.

9

Marketplace OpportunitiesMulti-Configuration & Hygge

INTENSE SENSEWhether is is intense color, texture or

shine bringing attention to the senses is

important.

10

Currently Trending

& Coming Soon

NATURE’S TOUCH

Mixing elements of nature into

clean and crisp design

provides a warm environment.

GEO RAGEGraphic, abstract, patterns, lines…

all of them are relevent this season.

Some using only two colors and others

combining the rainbow for stunning

contrasts.

WORLD VIEW

It is a small world! The trend

of mixing design elements of

different cultures has

brought the whole world into

the home goods market.

11

The movement in color is away from the

softer pastels and onto the brighter more

intense colors. Inspirations from nature as

well as bolds and brights are working

together to create warm, inviting looks.

From Pantone’s color of the year,

Greenery, to the very popular lemon

yellow color is definitely finding its way

back into the home.

Color – The Days of All Neutral Are Over

The specialty retailers continue to focus on customization and offering a very wide variety

of styles, most with extreme high-end details and fabrics. The customization option, along

with design andquality, set apart this group of retailers. Many accessories are offered for

each set. Eclectic style using mixed materials gives a nod to nature’s touch.

12

Specialty RetailersOverview by Outlet

• These retailers rely on their “whole

home” and “indoor/outdoor furniture”

legacy and expertise to offer cutting-

edge designs and merchandising.

• Incentive programs, such as the RH

Grey Card membership program,

along with special promotions during

the season are offered regularly.

• Customization is a featured selling point.

13

Catalog, Online & In-StoreOverview by Outlet

14

Catalog & Online Overview by Outlet

• The catalog and online merchants utilize their

expertise in product development and

merchandising.

• The platform allows them to position products

with accessories and the perfect backdrops.

• Design specialists are available to assist

in purchases.

• Patio is not prominently featured, but the category exists and is not

hard to find.

• Decent assortment with various price ranges.

• Extensive filters and well-categorized sections of patio furniture

create an easy search experience.

• Outdoor/Patio heavily featured on home page.

• 70% off sale, clearly marked and well-promoted items .

• Email sign up pops up upon website entry and advertises

discounts/free shipping on orders over $49.

• Outdoor living is prominent on site.

• Features a “Customer Favorites” section and is categorized well.

• Good use of marketing with sale/clearance promotion and

comparison tools.

• Free shipping on orders over $49.

15

Online RetailersOverview by Outlet

• Wide assortment of patio furniture for traditional and modern shoppers,

as well as inexpensive to expensive pricing.

• Various filter categories based on set type, material, pricing, size, customer

reviews, etc.

• Immediate prompt for member sign up & coupon savings.

• Offers many trendy and colorful bright pieces.

• Shop by style Is convenient for shoppers for prefer a particular look.

• Highlights current sales throughout site and applies new price to all

merchandise.

• Does not offer free shipping.

• Outdoor/Patio is very prominent and well displayed with a clean layout.

• Wide range of products .

• “Finishing touches” and accessories are marketed well across the site to

create the overall outdoor room for shoppers


16

Online RetailersOverview by Outlet

THINGS DONE WELL

• Wide style and design throughout assortment.

• Solid promotion of online options.

AREAS TO IMPROVE

• Hampton Bay® branding focus.

• Motion Dining Set clustering, with $349 (Santa Cruz),

$399 (Statesville), $425 (Nantucket) & $499 (Belleville)

Overview by Outlet

• Strong core assortment across key price points

from $199-$899.

• Product positioning on “stronger value offerings”

with 50% of sets under $500 and 40% between

$500 - $799.

• Big emphasis on the Mix & Match Dining Program.

• One-third of Dining Sets presented are 5 Pc.

Configuration.

• Wide range of styles appealing to the traditional

and transitional customer.

• Good use of Upper Shelf for select display of

Bistro Sets and other items.

• Effort to connect the in-store and online

experience with POP and website information.

• Hampton Bay® on almost all products.

17

PRODUCT EXPERIENCE

18

Overview by OutletPRODUCT PHOTOS

THINGS DONE WELL

• Improved layout and product placement.

• Consistent and vibrant POP signage on the sets.

AREAS TO IMPROVE

• Better integration of the accessory program.

• Knowledgeable staff not always present.

• Floor can be hard to navigate and shop in

certain stores.

• Great location in store with high visibility and traffic;

well organized lay-out.

• Prominently placed and promoted “Mix & Match”

program.

• Central focus on updated Spring Haven Wicker

collection with coordinated pillow towers, gazebo &

fire-pit.

• Expanded Accessories Program presented on shelves.

• Strong Merchandising to support On-Line assortment

and “Create-Your-Own” cushions.

19

Overview by OutletMERCHANDISING EXPERIENCE

20

Overview by OutletHome DepotMERCHANDISING PHOTOS

Ease Of Use

• available for easy checkout.

• 360 gallery image view of set.

• Detailed product overview infographic that is

simple and visually pleasing.

• Free shipping and estimated store-pickup/shipping

dates.

Assortment Mix

• Multiple choices for traditional and transitional customer.

• 30-50% discounts on select patio items.

21

Overview by Outlet

Create Your Own

• Customized color program well-marketed on

site (features 16 collections).

• 16 fabric colors and 17 frame options.

• Color appears on bare set image when

selected.

Interconnectivity

• POP in store directs customer online for more options.

• Provides a product search for nearby store.

WEB EXPERIENCE

• Easy to view images by

scrolling left or right on

product page.

• Quantity and pickup

availability date appear

for nearest store.

• Quick live chat allows

immediate help from live

service reps.

• Facebook and Twitter promotes

product well with a Patio

Challenge, DIY patio videos

and links to their website/blog.

• Instagram rarely promotes

patio, heavier focus on indoor

home.

• 73 Pinterest boards with Patio

featured as the 1st board.

Boards are well categorized

and easy to find DIY or

outdoor inspiration.

22

Overview by OutletHome DepotMOBILE APPS & SOCIAL MEDIA

THINGS DONE WELL

• Well executed styling with attention to detail.

• Eye-catching colors and detail in frames, cushions and pillows.

AREAS TO IMPROVE

• More consistent offerings at every price point.

• Increased core assortment from 21 to

23 sets.

• Wide range in retails from $199-$1,300

with 39% below $500, 35% between $500

and $799 and 26% over $900.

• New on-trend Atworth collection with dining

and conversation sets prominently

located/featured.

• Core set designs remain more traditional

but still offering progressive transitional

styling.

• Many sets offer a la carte items.

• Sunbrella® Fabric and Sling on select

higher end sets.

• Allen & Roth® “Premium” brand growing

while value-positioned Garden Treasures®

brand remains strong.

23

Overview by OutletPRODUCT EXPERIENCE

24


THINGS DONE WELL

• Attractive, easy and comprehensive shopping experience.

AREAS TO IMPROVE

• Need for more sales staff to readily assist customers.

• Extremely pleasant and organized in-store experience with

well accessorized sets, including rugs, umbrellas and

gazebos.

• Enhanced presentation and positioning of the Wicker, Sling

Stack programs on shelf.

• Effective displays and shelving systems to help convey the

relevance of accessories.

• Lowe’s Outdoor Living Catalog shows the complete

assortment and offers the customer a take-home experience

with complete assortment and product details.

• In-store POP that promotes the custom program and

promotes online offerings.

25


26

Overview by OutletMERCHANDISING PHOTOS

Assortment Mix

• Very easy to narrow by category, space, seating, and

material.

27

Overview by Outlet

Ease Of Use

• 3D / 360 view for select items.

• Installation guide is available online.

• Free local delivery within 75 miles of store.

Create Your Own

• Strong customizable collections with majority

featuring coordinating pieces.

• Wide selection of colors/patterns for coordinating

pillows and cushions.

Interconnectivity

• POP in store directs customer online for product

information and additional coordinating items.

• Shows specific store availability online.

• Social shares via email, Facebook, Twitter,

Pinterest, Instagram, Youtube and Vine.

WEB EXPERIENCE

• Gives operation hours

and exact inventory at

closest stores.

• Easy map to help locate

product in store with

aisle number and bay.

• Product scanner allows

customer to use phone

camera to scan product

barcode or QR code.

• All social accounts reference links to

their other accounts frequently.

Facebook and Twitter promotes

product well with DIY videos and

patio inspiration.

• Instagram features patio furniture

often and incorporates DIY tips into

product marketing.

• 68 Pinterest boards, including

gardening, outdoor living and patio

inspiration.

28

Overview by OutletMOBILE APPS & SOCIAL MEDIA

• SKU/Set reduction over past 4 seasons,

from 21 to 19 to 15. This year down to

12.

• Enhanced “Mix & Match” Dining Program

offered with chairs, tables & cushions.

• Price-point breakdown has 55% of

assortment below $300, 27% between

$300 - $600 and 18% over $600 (which

is a new plateau T/Y).

• Presents many classical and traditional,

with a few transitional styled sets, all at

strong value.

• Three out of Five Dining Sets are offered

in 5 Piece Configurations.

• Dual-branding private label program with

comprehensive use of Main Stays® and

Better Homes & Gardens®.

THINGS DONE WELL

• Very strong value-story, with emphasis on Mix & Match Dining

• Introduction a few “higher-end” designs

AREAS TO IMPROVE

• Limited Accessories offered

• Quality Inconsistencies29


30


• Central placement in Garden Center or Seasonal

department.

• Prominent “Mix & Match” Dining Program with

expanded assortment and enhanced

merchandising support.

• Compelling kiosk and info about On-line

program.

• Improved Mainstays ® & Better Homes &

Gardens® Packaging and POP Hang Tags, but

removed set signage.

THINGS DONE WELL

• New packaging and hang tags.

• Improved Tie-in with online opportunities.

AREAS TO IMPROVE

• Consistent store execution.

• Integrate more accessories with sets on floor.

• Fabrics (quality, color, texture).

31


32


Assortment Mix

• Filters are easy to use and help narrow down by

category, price, material, seating capacity, finish,

measurements and shipping options.

• Offers alternate frame and cushion options on some

collections.

33

Overview by Outlet

Interconnectivity

• POP in store directs customer online for alternate

color options & product specifications

• Shows specific store availability online

Ease Of Use

• Best seller, rollbacks and reduced prices clearly marked

• Free shipping and free store-pickup (plus additional

discount)

• Customer Q&A section available

Create Your Own

• Coordinating pieces recommended for same collection

WEB EXPERIENCE

• Scan code allows easy

product lookup if shopping

in store

• Clearly marked shipping

deals, rollback, discounted

prices

• GPS available to find

nearest store availability

• Facebook and Twitter do not

post about patio furniture. They

only promote outdoor living

(grilling and gardening)

• Instagram only has one patio

furniture post

• 83 Pinterest boards. There is not

a specific patio furniture board,

but there is an outdoor décor

board.

34


THINGS DONE WELL

• Fresh styling, designs and colors across the set and all items.

• Strong assortment of “Mix & Match” Concept in Dining + Chat.

AREAS TO IMPROVE

• Very limited number of furniture sets on floor.

• Can get very “accessory” chaotic if not cleaned and maintained.

• Very few sets on floor. Most products

are is sold a la carte.

• Expanded “Mix & Match” stack

items.

• Only 2 Dining sets presented on the

floor (25% of the offerings vs. Mass

Avg. of approx. 50%).

• Strong accessory assortments and

presentation.

• Balance between transitional wicker

collections with unique styles and

constructions.

• Continued big push on the

Threshold® brand and expansion of

online offerings.

• No special branding initiatives T/Y,

like Marrimeko® and Lily Pulitzer®

lines.

35


36


• Located in back of store with cushion assortment on back

wall as colorful backdrop.

• Many accessories offered on different shelves and

displays throughout the set.

• Full integration of rugs and various accessories on every

display sets.

• Numerous signs promoting additional furniture and

accessories on-line.

THINGS DONE WELL

• Very pleasant and visual shopping environment with a lot

of cross merchandising.

• Clean and simple designs, from product to signage.

• Excellent tie-in with Online Program.

AREAS TO IMPROVE

• Limited product assortment.

• No hanging kites or large signage to help define area.

37


38


Assortment Mix

• Filters are easy to use and help narrow down by

category, price, material, seating capacity, finish,

measurements, retailer and shipping options.

• Offers alternate frame and cushion options on some

collections.

39

Overview by Outlet

Interconnectivity

• Shows specific store availability online and quantity

left in stock.

• Allows free order pickup.

Ease Of Use

• View/angle of set changes with hover instead of

clicking on he picture.

• Shows discount, store availability, store aisle location

and countdown of sale time remaining.


Create Your Own

• Coordinating pieces recommended for same

collection.

WEB EXPERIENCE

• Barcode scanner allows

quick and easy access to

look up offers, price and

product details.

• Well categorized by set

types to allow quick

browsing.

• Shows delivery availability,

store availability and

closest store for pickup.

• Facebook and Twitter promotes

product well with a Patio

Challenge, DIY patio videos, and

links to their website/blog.

• Instagram rarely promotes patio;

heavier focus on indoor home.

• 73 Pinterest boards with Patio

featured as the 1st board. Boards

are well categorized and easy to

find DIY or outdoor inspiration.

40


Overview by OutletIN-STORE & MERCHANDISING EXPERIENCE

THINGS DONE WELL

• Well presented lay-out with color labels on

packaging.

• Displays sets on outdoor rugs and with umbrellas.

AREAS TO IMPROVE

• Strong value at lower retail.

• Improved POP Signage.

• Expanded assortment beyond furniture with more

stack chairs, storage, umbrellas and select

accessory items.

• 60% of the sets are positioned over $1,200 with

20% below $500.

• Designs are more traditional and classic with

introduction of a few more transitional styles.

• Branding under the private label Berkley

Jensen®.

41

THINGS DONE WELL

• Impactful and informative Color labels on Packaging.

AREAS TO IMPROVE

• Integrate the accessory program into displays.

• Disorganized layout and product placement.

• Expanded on-floor assortment, stack program and other patio

furniture items and accessories.

• 7 out of the 11 sets are Conversation/Chat.

• Retail prices focused at over $900, with 72% of assortment, but has

continued to include impressive sets at lower retail price points of

$399, $499 and $599.

• Provides a high quality product with varied designs, Sunbrella®

fabric and aluminum frames.

• Includes furniture covers with most of the sets.

42


THINGS DONE WELL

• Well presented lay-out and product signage on sets.

• Outdoor rugs and umbrella display sets.

AREAS TO IMPROVE

• Wider range of styles.

• Very prominent placement in front of the

check-out.

• Expanding assortment beyond patio furniture

sets, including 2 Stack Chairs, Storage,

replacement cushions and select accessory items.

• Every set is over $900, with 57% over $1,200.

• Designs are more traditional and classic.

• Sunbrella® fabric on everything and 100%

aluminum frames.

43


• Extensive assortment with 39 sets, across wide range of price

points, with 44% under $500 and 23% over $1,000.

• Large retail space devoted to the Patio & Outdoor category in

central location with a 2nd floor upper deck for inventory.

• 51% of the assortment are dining sets with half of them

presented as a 5 Pc. and 20% as a high dining option

• Primarily classic and traditional styling with 46% in sling

THINGS DONE WELL

• Wide price range assortment.

• Devoted department staff always in department.

• A la Carte presentation/offering.

AREAS TO IMPROVE

• Disproportionate number of sling dining sets.

• Limited new/fresh designs and accessories. 44


THINGS DONE WELL

• Create dynamic scenes with the furniture and rugs,

gazebos and umbrellas.

AREAS TO IMPROVE

• Difficult to walk around all sets.

• Great use of space and location including an upper

mezzanine to present items.

• Numerous scenes created with patio bricks and green

turf, gazebos, umbrellas and other accessories.

• Individual POP Signage on each set with costing and

product info.

• Large Catalog available in store and well-staffed

area.

• Backyard Creations® private label brand on almost

all items.

45


Thank You

john wilson andrew goldstein rebecca marsella helen...

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