A couple of weeks ago, I was chatting with Doug Sanicola of Outdoor Elegance for a story when he said something that really struck a nerve.
“The hardest thing for 2021 is being able to get a completed order from a manufacturer,” he said. “And we will always say to the manufacturer, ‘send us what you have, even if it’s not complete.’”
It’s a familiar refrain in among retailers in the wake of COVID-19. The pandemic created shipping delays, factory shutdowns, material shortages and a host of other issues that have slowed product production and distribution. And at the same time, it created unprecedented demand for outdoor furnishings, leaving many retailers well into the black for 2020, but also with near-empty warehouses and showrooms.
Standing on the precipice of the 2021 selling season (with some in warmer climes already in season), we asked several retailers how these product delays have affected their businesses and how they’re working through these issues to continue to build on last year’s momentum.
Are you still experiencing difficulty getting product for your store because of the pandemic?
“I have to preface this with the pandemic started everything, but now there are so many layers of issues on top of the original root cause. The depletion of raw materials and existing stock last year is making for a much more challenging year this year. It is the three Fs—fabrics, frames and freight—that are driving us to be more creative. —Susan Kiley, Bay Breeze Patio
“It’s a real mixed bag. One of the main issues is the number of fabrics for upholstered products that are unavailable or will only be available late in the season. There are still many choices, but it does complicate the issue when showing customers fabric books. Composite product manufacturers are struggling to get material. Imports have been delayed because of the worldwide container shortage and unavailability of capacity from the steamship lines. Freight rates have gone through the roof. This affects woven and aluminum products. —Grant Henegan, Fire House Casual
“We are experiencing difficulty today, and part of the problem is the supply chain. The transportation industry both nationally and globally is struggling just like manufacturers with the changes presented by the pandemic.” —Scott Horvath, O’Malia’s Living
“The supply chain for the industry is the worst I have seen it in all the years I have been doing this. We are getting hit with delays from every angle.” —Chad Scheinerman, Today’s Patio
“Yes. Some factories are still opening up, but not at full capacity as of yet.” —Karen Brams, Island Living and Patio
“Yes, we are dealing with far-beyond-normal lead times of 12-16 weeks in some cases. This tends to be exacerbated by COVID-related production line slowdowns, and the biggest thing we’re dealing with is fabric shortages from Glen Raven holding up order completion. We’ve had to explore alternative fabric resources from Sattler and Ferrari/Batyline. On top of it all, the problems in the ports with container shortages is also affecting some of our manufacturers. We also struggle mightily with manufacturers whose schedules slip, but they do not tell us. When we place an order, we log the expected ship date that the manufacturer gives us. We confirm this lead time with the customer. But we are having too many cases where those dates apparently slip (significantly), but the manufacturer neglects to tell us. Customer calls us, we check in with the customer, and that’s when we find out there’s a problem. The vendors who do this to us go onto our ‘sell this line last’ list! —Mike Robertori, Villa Terrazza
Do you feel prepared for the coming season, order-wise?
“We are not typically a big early buy store, but we loaded up this year, and it is paying off. All of these challenges will affect our business, but we are not alone with the challenges. The online folks are dealing with the same issues. Most consumers get what is going on because they are dealing with it across the board in home goods. The challenge becomes turning a custom order over to a stock order, and that is happening.” —Susan Kiley, Bay Breeze Patio
“Depends on the day! We have tried to gauge as best we can, however, it’s not a perfect science. There are so many moving parts it has become near impossible to plan perfectly. In my opinion, any retailer who is not projecting 4-6 months out for domestic product and 5-8 months for imports, is behind the eight ball!” —Chad Scheinerman, Today’s Patio
“We will definitely have a rocky start. We normally reset our floors entirely for the first weekend in March. We have a very detailed merchandising and logistics plan to make this happen. Looking at where we are now with multiple delays from vendors, it looks like only 60% of our plan will be in place by the beginning of March and we expect to be at 80-90% by the first week in April.” —Grant Henegan, Fire House Casual
“Yes, to a point. We did huge early buys! ” —Mike Robertori, Villa Terrazza
“O’Malia’s Living is ready, but our business model relies heavily on custom orders. We rely on partnerships with our manufacturers, and they have their own challenges. This concerns us.” —Scott Horvath, O’Malia’s Living
“We are in our season now, but for us, we have not experienced an off season since 2020. We mostly process custom orders for our clients.” —Karen Brams, Island Living and Patio
Do you think product delays will impact your business this season?
“Yes, but we tend to be a special-order house, and our customers usually want what they want and are willing to wait for it. At times, we have actually loaned them furniture for their big party if their special order product was delayed. Customer service, open communication and empathy is the key to success in this time.” —Mike Robertori, Villa Terrazza
“Yes. I suspect that long lead times and vendors constantly changing shipping dates is not only frustrating for customers, but the constant delivery of negative news is draining for our customer-facing staff. I suspect that demand will still be strong, but the gap between written and delivered business will undoubtedly continue to grow as delays cause our backlog to increase.” —Grant Henegan, Fire House Casual
“Yes. I believe sales will be strong, and inventory is low. I believe this will lead to ongoing delays even as restrictions ease and more people are vaccinated. The supply chain issues will take time to even out.” —Scott Horvath, O’Malia’s Living
“I would be foolish to say no. Although business is and has been very good, there is no question we could do even more business if we could get the product in a reasonable amount of time.” —Chad Scheinerman, Today’s Patio
“Somewhat. Most manufacturers are shipping, just slowly.” —Happy Land, Custom Outdoor Furniture and Restrapping
“Yes, we do lose some business due to the long delays—people don’t want to wait 3-6 months. Yet, our numbers don’t show the drop as we are up significantly for 2020 and already for 2021.” —Karen Brams, Island Living and Patio
What do you think? Send your thoughts to jennifer@homenewsnow.com to be included in a story update.
