SGB Executive talked to Terry Schalow, executive director, Running Industry Association (RIA) as his organization wrapped up KICK On-Demand, its first virtual trade show, as a result of COVID-19. RIA also just released its third COVID-19 Retail Survey of run specialty stores that revealed both positives and negatives for the run specialty channel.
On the positive side, the August survey found June’s sales showed a stronger-than-expected recovery. Also, nearly all respondents, 96 percent, were confident their business would remain viable amid all the challenges presented by COVID-19.
On the downside, sales slowed somewhat in July, and the majority of run specialty shops surveyed are expecting sales declines in the second half. A slow recovery is also projected with 74 percent of respondents indicating they don’t anticipate returning to 2019 sales levels until the second or third quarter of 2021.
What’s your take on the latest survey results? If I were asked to synthesize the general outlook from channel retailers in two words, I’d say “Cautious Optimism.” After a promising June, July sales settled down just a bit, and August looks to be flat to slightly down from last year. Based on retailers’ expectations from our survey, the slightly-down numbers may hold for the back half, and replacing lost business from canceled Cross Country seasons and fall marathons isn’t going to be easy. I don’t see retailers counting 2020 as a lost year, however. This is certainly a challenging and uncertain environment, but people are out there running. And run-specialty retailers are doing a great job connecting with their customers and providing them with safe, secure environments to purchase running gear.
What stands out to you in the shifts many run shops have made to adapt to COVID-19? I’m really impressed by the retailers who have embraced omnichannel sales strategies, specifically online sales platforms. These tools seemed to elude the channel for many years, but the COVID crisis proved to be the impetus that retailers needed to get up to speed. And they got going quickly!
Marketing is key as well. Retailers who have figured out how to remain connected with their customers and attract new customers are seeing success. The common denominator appears to be engaging marketing specialists who help retailers build targeted programs. Naturally, retailers who have an online sales element combined with a great marketing program are capturing higher levels of sales. What is really exciting to me is how these strategies are likely to stick around, which will bode well for the competitive strength of the channel post-COVID.
How did KICK On-Demand go? RIA KICK on Demand served a couple of very positive purposes for the RIA and our members. It provided a needed sales connection during a time when face-to-face product presentations were difficult, if not impossible. Perhaps even more positive was what we learned from it. Given the hurry-up offense to produce a viable online show platform after canceling our in-person KICK Show, in some ways, it was an experiment to see what retailers and brands need from us and how we can best deliver that to them.
What worked well and what were the challenges? We had participation from the top brands in the channel, and that was a huge marketing lever that helped draw retail participation. But quite candidly, much of the buying season was complete prior to the show, so for some, the presentations were more of a recap. Most of our members appreciated the support, however, and many provided valuable feedback post-show. Suffice to say, timing will be an important element for any future effort. What they definitely want are tools and information, and that will be at the top of our agenda as we move forward.
What are your plans for the 2021 show? Our current focus is supporting our members this fall as they look to their Fall 2021 buying season. As we look to returning to our KICK Show format next year, we have to play a bit of a waiting game. We still have no idea if a physical show is even possible. But, we’ll have contingencies in play for whatever scenario presents itself.
Some are hoping for a third-running boom coming out of COVID-19? What’s your prediction? I’m not sure I would necessarily call it a running boom, but I think we can safely say that there are more people out there running since other forms of exercise are not available right now. We can see it with our own eyes as we notice more people running in our communities, and that subjective observation is supported by higher participation numbers. I expect that some will go back to their gyms when it is safe to do so, but it stands to reason that some percentage will permanently embrace running as their go-to workout. And that certainly bodes well for the health of running, as well as the health of the run-specialty channel.
Photos courtesy Nike, WSJ
