This week, we bring you the third and final installment of our three-part State of the Industry report. We spoke with industry leaders on how they see the current status of the outdoor category and what they anticipate for the year ahead.
In this final part, we explore the shifting retail landscape and what the casual industry can expect for 2026. Miss the first installments of the story? Click here to read Part I and here for Part II. And if you want to share your thoughts, email me at jennifer@homenewsnow.com.
How do you see retail evolving in 2026?
The retail landscape for casual furniture has changed drastically over the past decade, with full-line, mass merchant and e-commerce players fighting for a chunk of the business long enjoyed by independent patio stores. All that competition has made it more critical than ever for retailers to innovate and offer customers not only quality product, but convenience, service and a buying experience that caters to today’s consumer’s needs and expectations.
“We probably all need to rethink the way they do things,” said Brad Schweig, vice president of operations, Sunnyland Outdoor Living in Texas. “And there’s a lot of things I’d love to do here, but at the end of the day, I don’t have big national retail dollars to make things happen as a small business. So we can try little things on our level, but I think we have to get better with technology and brick-and-click.”
One of the things Schweig and a group of fellow independent retailers have done to better compete is to combine their efforts to form an advertising co-op. The co-op allows Sunnyland and other noncompeting retailers across the country to join forces to purchase customizable advertising campaigns at a more affordable rate.
“We have three (video) ads so far, and we were able to buy them at a fraction of what it would cost to do them individually,” Schweig said. “We still have room in the co-op, so if a retailer wanted to join and do this for their store, they can still get access.”
Investing in digital marketing has become even more critical for reaching today’s consumers, who are glued to their devices and often begin the shopping process online.
“The retail landscape is becoming more competitive as digital discovery plays a larger role in the buying journey. While direct-to-consumer brands have increased visibility online, retailers remain central to delivering expertise, service and in-person experience,” said Telly Varga, marketing director, Three Birds Casual. “Manufacturers and retailers who work closely together, particularly around education and lead support, will be best positioned to succeed. Family-owned retailers continue to be the backbone of this industry, and supporting their ability to compete remains critical.”
Retailers also must see online as more than an afterthought. Building a robust website that either drives foot traffic to the store or offers e-commerce shopping is key for smaller stores to compete with larger retailers.
“The combination of how you use e-commerce and brick-and-mortar together has to be better, because you’re seeing it from the big boys going from brick-and-mortar into e-commerce,” said Tom Murray, CEO, NorthCape. “But that trend doesn’t need to only be with the big guys — when you want to meet the customer where they are, you have to integrate other platforms other than just a store.”
Also important? Knowing who you are and who you serve. And for most independent retailers, with the proliferation of cheaper options at mass merchants and online, the focus has to be on stocking higher-end product.
“Retail is a key to our success,” said Rory Rehmert, president, Castelle. “Merchandising within the stores has improved, and I think it will continue to improve. More retailers are embracing higher-end products and having success. It’s critical to not trade consumers down.”
When appealing to that higher-end shopper, retailers must be ready to cater to the expectations of a more discerning consumer — offering customization, multiple fabrics and finishes and other ways to create something that feels tailored to their tastes.
“I think our retailers need to have a very clear definition of where they are positioned in their marketplace and embrace special ordering to differentiate themselves from big-box and online retailers,” said Lisa McCollister, vice president of marketing, OW Lee. “I think the ones who excel at selling the luxury experience will succeed the most.”
Along with options, retailers must go the extra mile to create the kind of luxurious shopping experience consumers expect when making such big-ticket purchases. White-glove service, design services and a personalized approach to customer service — both during and after the sale — are all perks smaller retailers can use to better compete.
“I think focusing on the upper end of the industry is going to be a winning strategy and one that I think more and more of our retailers are looking to do,” said Bryan Echols, president, Jensen Outdoor. “For that customer, it’s going to be the whole experience. It’s incumbent on our dealers to improve that experience other than just, this is nice product, it’s good quality. Consumers want more.”
Ultimately, the retail landscape will continue to evolve, but the role of independent retailers — particularly in a climate of consumers craving local experiences and a more human-centric approach — will remain important in the casual category.
“Retailers will play an even bigger role — they’re the ones creating excitement on the floor,” said Todd Wingrove, vice president of sales, Agio. “If they approach each customer with energy and explain why outdoor furniture is often the most-used purchase in the home, it goes a long way. People out shopping already have intent — the retailer just needs to show them how the right furniture will improve their day-to-day life.”
Are you anticipating a good year, bracing for a tough one or expecting something similar to 2025?
What does 2026 hold? While these first few weeks haven’t made our crystal balls much clearer, many in the outdoor industry remain hopeful that this year will be better than 2025.
“If interest rates go down, we are expecting a good year,” said Bew White, executive chairman, Gabriella White and Summer Classics. “And that looks like what’s going to happen, unless something unforeseeable happens.”
“We are anticipating a very good year,” said Mike Friedrichsen, vice president of sales, Pasticallo. “Although there was hesitation about the new ‘smart’ shade category initially, each year has far surpassed our expectations. The earliest of our products have now been in the field for four years with no problems, so the uncertainty that retailers originally had is dispersing and the convenience is now the primary driver.”
“We’re not aiming for records, and we’re not expecting a step back either,” Wingrove said. “The honest outlook is flat to slight growth — steady, stable and manageable.”
“We’re anticipating a solid year that’s defined by thoughtful, intentional growth,” Varga said. “The customer is more discerning than they were a few years ago, and that’s creating opportunities for brands focused on quality, longevity and clear storytelling. While the market continues to evolve, we feel well positioned for a year that builds on the momentum we’ve seen rather than reacting to short-term swings.”
“We are expecting to see growth in 2026 due to many factors,” McCollister said. “We have been working really hard to be a reliable source to the dealers while offering as much value as possible, and I think that has set us up to have a successful year.”
“Castelle is coming off back-to-back good years — we see this trend continuing for 2026,” Rehmert said. “The higher-end consumer continues to buy, and as long as we provide the designs, quality and timely delivery that they expect, we see continued growth.”
“Looking ahead, we remain optimistic but realistic. While we are hopeful for a strong year, we are also preparing for continued market pressure,” said Laura Dudley, national sales manager, Frankford Umbrellas. “In response, Frankford will significantly increase its marketing investment to strengthen and elevate brand visibility and more clearly communicate our values, positioning and long-term vision. Our goal is to strengthen relationships with casual furniture specialty retailers and designers who share our perspective on the enduring value of quality, design and performance in the outdoor living category.”
“A high tide raises all boats,” Murray said. “My assumption is the housing starting to move again will be the thing that helps our industry the most. And until then, we’re just being all scrappy, buying in our way, and our model is going to be leaning into the things we do best, which is our customization and choice and things like that.”
