Seasonal Concepts new concept: Smaller but better

The ground may be frozen solid in Minnesota, but for the new owners of the struggling Seasonal Concepts chain, it's a time of re-emergence reminiscent of spring.

Business partners Mark Austin Smith and Greg Daniel recently sank $1.7 million into the retailer of patio furniture and accessories to pull it out of bankruptcy. Their goal is to operate a slimmed-down version of the company that once had 15 stores in six states.

Since purchasing the remaining six stores of the Plymouth-based company in November, Smith and Daniel have closed two outlets in Iowa and will close the Seasonal Concepts store at Har Mar Mall in Roseville when the lease expires Jan. 31. Surviving stores will be in Woodbury, Minnetonka and Bloomington, all of which have been profitable, they said.

"We're going back to three really well-run Minnesota stores with white-glove service and relationships with all of our customers," said Smith. "When patio furniture gets delivered, we envision the delivery person having an iced tea with Mrs. Smith -- not just throwing it on the curb and saying, 'See ya later.'"

Smith, 49, and Daniel, 39, met a couple of years ago and have done several business deals together, including buying a chain of Cash-N-Pawn shops that has proved to be a strong moneymaker, they said. The two say they don't have drastic changes in mind for Seasonal Concepts, and they plan to find better ways to serve customers interested in the quality of furniture that can hold up to Minnesota's winters.

"We're not big-box where our economies of scale are going to allow us to buy cheaper and sell cheaper," Daniel said. "The product is more high-end. The service is high-touch, personal, intimate. You won't find this at Home Depot."

Seasonal Concepts' roots go back to 1962, when it began as Flowertown.

Founders Carl Wolk and Marvin Stillman sold plastic flowers imported from China out of the storefront near Interstate 494 and Lyndale Avenue in Bloomington, the spot where the flagship store still operates.

The company quickly added patio furniture and eventually opened about 70 temporary Christmas in the Mall stores nationwide, where it sold artificial trees and other holiday accoutrements. The company changed its name to Seasonal Concepts in 1995.

In 2005, Seasonal Concepts had between $40 million and $45 million in annual sales, according to Casual Living magazine, and it ranked among the magazine's 100 Powerhouse Retail Specialists.

Seasonal Concepts grew well beyond its Midwestern base, opening stores in California, Texas and Georgia and running five distribution centers.

Previous owners and former Best Buy executives Richard Soskin and Jed Stillman, son of founder Marv Stillman, tried to refocus on profitable Midwestern markets and attract new capital. Unable to turn things around, they filed for Chapter 11 bankruptcy protection on Oct. 9.

When Smith and Daniel took over, Seasonal Concepts owed $6 million to $8 million to creditors. All secured creditors have been paid in full, Smith said. About $600,000 in orders for patio furniture and other merchandise on file at the time of the bankruptcy will be fulfilled, he said.

Booming backyard rooms

Outdoor living has been a retail growth category for a number of years as homeowners add outdoor kitchens with elaborate grills, seating areas and other amenities to screened-in or open-air porches. A survey by the American Institute of Architects found that 63 percent of its members had an increase in business for outdoor living spaces last year.

But competition is growing as well. Hoigaard's and Smith & Hawken have a strong presence in the Twin Cities, and high-end garden centers, including Bachman's, also are going after the backyard lifestyle market by selling furniture and outdoor trappings. Discount national chains such as Target, Home Depot, Sears and Wal-Mart also sell patio furniture and fire pits.

It's too soon to know whether the growing housing slump and ever-tighter credit will affect Seasonal Concepts' sales. The company typically does well over the holidays, but gets most of its revenue in spring and summer months.

"The problem is with positioning," said Stan Pohmer, a Twin Cities retail consultant. "When people think 'Seasonal Concepts,' it's a business card that says 'we're distinctly seasonal. We have Christmas and spring.' But that whole concept of 'the backyard living room' is a very, very strong trend right now."

He added: "If there were a time they could fit in, this is probably it."

Smith and Daniel say they'll explore partnerships with companies that have seasonal fluctuations opposite of their own, such as high-end fireplace manufacturers.

Smith's interest in Seasonal Concepts goes beyond the chance to turn a profit, though that's clearly part of his plan. Three decades ago, his late father purchased the land and building where the Bloomington store is located.

Now Smith is not just the landlord, but the tenant as well. And with Daniel, he plans a return to the company's roots.

"We're just going to listen to our employees and find out what we need to do to get back to the fundamentals of what made Seasonal Concepts successful," he said.

Jackie Crosby • 612-673-7335