HomeGrill ManufacturersTraeger Expanding Retail Sales Team to Combat Consumer Softness

Traeger Expanding Retail Sales Team to Combat Consumer Softness

Traeger reported 2023 earnings and came in above their guidance for the year. They’ve done a good job executing on driving down inventory and maintaining expense reduction initiatives. Despite that, they expect 2024 to be another year filled with headwinds, and expect flat to a small reduction in revenue.

Consumer Concerns

There was no getting around consumer spending softness in 2023. With high inflation, macro concerns, and a increased experiential spending, we didn’t see anywhere near the grill buying that took place through the pandemic. Traeger expects to much of the same from consumer spending in 2024.

Our outlook assumes that the grill industry will continue to experience headwinds in 2024. Specifically, we expect that the shift in consumer share of wallet from big-ticket home-related products, such as grills, toward experiences, services, and leisure will continue to 2024.

Jeremy Andrus, CEO of Traeger

Traeger had previously noted that grills price above $1,000 were more resilient to consumer pressures than less expensive grills. That’s changed though, and they see degradation even in their more expensive grills.

So, just from what kind of we’re seeing directionally, there’s been a little bit more pressure on, you know, premium price points, above $1,000, than we normally see, which is consistent with our comments earlier on just the continued pressure on big-ticket items. That said, I mean we are still continuing to see appetite for our key innovations, And I think that the reception for these innovations has been strong.

Dom Blosil, CFO of Traeger

Investment in Sales and Product

To combat concerns with the consumer, Traeger is investing in retail sales and in product development. They hired a new EVP of Engineering recently, and stood up a platform R&D team.

Investing behind our product development engine is a key area of focus in 2024 and is critical to our long-term success as a disruptor and innovator in the outdoor cooking industry. In 2023, our product team nearly doubled in size, underscoring our commitment to long-term innovation.

Jeremy Andrus, CEO of Traeger

On the sales side, they are working on educating consumers and store associates on their grills. This has included adding Traeger Islands to Home Depot locations, which are dedicated showcases for Traeger products.

In 2024, driving improved selling execution of Traeger products and retail floors will be a key initiative, one that we internally refer to as upgrading the ground game. This includes expanding the team of retail sales specialists. These specialists are Traeger experts who visit retail locations, drive improved merchandising and Traeger product, coach and educate store associates, and demo Traeger grills.

Jeremy Andrus, CEO of Traeger
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