Retailers in the outdoor space know well that timing — having the goods in the warehouse as the season begins — can mean the difference between success and failure.
That’s been a challenge over the past couple of years, thanks to supply chain problems and unbelievable demand.
These days, as the season winds down, a spot check of retailers shows that inventories are high, sales are beginning to slow and consumers would be well-advised to get their orders in now.
At Today’s Patio in Phoenix, owner Chad Scheinerman says in terms of inventory, his store is in good shape.
“Our current stock position is quite strong,” Scheinerman says. “This is due to the fact that we are getting in orders that we placed many months ago, some even as long as a year ago.”
Supply and a lessening demand have also been factors that have played a role.
“With the influx of incoming shipments and overall business trending down from pandemic highs, it puts us in a very strong in-stock position,” Scheinerman says.
That downward trend is because of a slow-down in foot traffic, which was expected.
“To think that the increase is going to continue would be a mistake in my opinion,” Scheinerman says .” The party is/was going to end at some point! We are still busier than we were at pre-pandemic levels but we are trending in that direction.”
Consumers would be well-advised to buy now.
“We are telling customers that the supply chain overall is getting better but it is still volatile (brand-specific),” says Scheinerman. “So, if they like what they see and they don’t want to deal with potential additional price increases or shortage of inventory — to buy now.”
For Justin Aulakh of Classic Patio in California, increases in stock and inventory to meet market demand mean that his business had to go through a massive change.
“From late 2020 to early 2021, we had the largest ‘early buy’ purchases that we have ever had in the history of our business,” Aulakh says. “We had to double our warehouse space just to store everything. This was mostly due to the increased lead time of special orders across the industry.”
The timing worked out well for Classic Patio and its customers.
“Surprisingly, a healthy number of consumers were more understanding of extended lead times and were still willing to wait around for three to five months for customized furniture that would match their patio perfectly,” Aulakh says. “Considering these factors and looking back now near the end of the year, I think we may have overdone it just a little bit. We have a very healthy stock of inventory now at the end of the year and it has led to a significant decrease in our early buys purchases for next year.”
He added that an expected slowdown in sales next year is another factor in the decrease of early buys.
“We’ve noticed a minor slowdown in sales in the last couple of months and the trend is starting to shift downwards a bit,” Aulakh said. “It’s safe to assume that the increase in families working from home and staying home has led to a boost in outdoor furniture purchases, which means as people slowly move back into the office, and the pandemic hopefully finally tapers off, that furniture sales will take a small hit.
“However, there are still other major factors slowing demand for outdoor furniture, including inflation, supply chain constraints, election-year anxiety, etc. If some of those aspects can be improved in the next year or so, it could counterbalance any drop-off in demand.”
For consumers, Classic Patio’s advice is that if you want it, buy it now.
“Our biggest message is to buy early and as soon as possible,” Aulakh says. “The smartest customers are the ones that come to us right now! The average manufacturer is taking between two and four months for special orders of furniture and we all know that timeline can quickly increase sometimes. Anybody that purchases furniture before the end of this year will be way ahead of the curve by the time the weather warms up. This is especially true for commercial clients.”
At Patios Plus in Rancho Mirage, California, Kristine Schultz, store president and chief executive officer, says that she recently took an aggressive stance in purchasing.
“We were buying quite a bit of stock when nothing was shipping, so as things have started to come in, we are fully stocked for this next season,” said Schultz. “We really are not doing but a few early buys.”
Schultz theorizes that sales have taken a hit because dollars are being spent elsewhere.
“We have definitely seen a slowdown,” Schultz says. “I feel with Covid more at bay many of our customers have been traveling and using their discretionary dollars on other things rather than their homes.”
