After the pandemic hit, the term The Great Reset was thrown around and used in various ways.
In fact, the World Economic Forum has even made an initiative out of the term. Its website says, “There is an urgent need for global stakeholders to cooperate in simultaneously managing the direct consequences of the Covid-19 crisis,” and that’s why the initiative was created.
In a recession-resistant industry, casual manufacturers and retailers didn’t struggle nearly as much as other industries during the pandemic.
But as sales have slowed and we’re going into the prime casual selling months, the industry is resetting after the pandemic, and there are notable happenings that will change the casual industry this year.
- Atlanta Market. With the move of casual exhibitors to the Atlanta Market from Chicago, brands will be exposed to new buyers from across the country and have a chance to get their products in new stores. There’s a wealth of opportunity when it comes to this market, and everyone I’ve talked to has said the January show gave them a good idea of what to expect in July.
- The Retail Pool. There are fewer casual specialty retailers than ever, but the ones that are still around have been wildly successful. While sales are projected to be flat this year, some are hopeful that refund checks will push people to buy outdoor furniture, especially as more work from home has become the new normal for many.
Also, full-line retailers are still ramping things up with their outdoor categories, and with new manufacturers getting into the game — meaning more vendors than ever to choose from — the competition is heating up. Of course, competition in business is healthy and oftentimes drives more sales to those who are savvy. - Consolidation. From Hooker’s acquisition of Sunset West to Watson’s buying Allstate Home Leisure to Starfire Direct becoming part of Blackford Capital, there has been a lot of consolidation in the industry over the past year. I predict there will be more as time goes on for two reasons:
First, full-line manufacturers — who now all want to get into the category — are going to figure out that it’s much easier to buy an outdoor specialty company than get started on their own. Second, as we’ve seen, investment firms and private equity companies are going to continue to invest in outdoor companies, and that will change the way business is done for many in the casual industry.
Designer Focus. As I’ve written about previously, the Las Vegas Market is designer-driven and the casual exhibitors who show there bring products for that audience. To me, there seems to be a bigger line being drawn between residential and designer-focused companies. While many residential lines are designer-focused, some companies have lines especially for designers now, and I think that’s going to continue as well.
When I ask people what the future will hold, they all tell me they wish they had a crystal ball to see into the future. We may not be able to see what’s coming, but there are some very real trends happening in the industry that shouldn’t be ignored.
