According to SnowSports Industries America's (SIA) latest Retail Audit, snow sports holiday sales showed modest gains over last season's holiday sales but a healthy snowstorm and atypically cold temperatures in the South drove stronger sales for that region. Overall dollar sales totaling $1.8 billion (carryover included) were 1.4% higher than August through December sales last season. Quick Trends Regional Results For the first time, SIA will provide members with information throughout the season about sales in the Northeastern, Western, Midwestern, and Southern U.S. regions. Regional Sales Season to Date Growth Units Season to Date Growth $ Total Dollar Sales ($millions) Northeast Equipment -6.4% -3.1% $120 Northeast Apparel -0.6% 1.0% $113 Northeast Accessories -0.3% 7.2% $93 Northeast Total Sales -1.4% 1.1% $326 West Equipment -9.2% -3.9% $115 West Apparel -7.5% -3.6% $106 West Accessories -9.2% 0.9% $119 West Total Sales -8.9% -2.2% $340 South Equipment 9.6% 11.1% $39 South Apparel 9.5% 4.1% $74 South Accessories 9.0% 14.0% $53 South Total Sales 9.1% 8.8% $166 Midwest Equipment -4.5% -1.8% $57 Midwest Apparel -9.3% -3.3% $90 Midwest Accessories -10.0% -1.6% $55 Midwest Total Sales -9.2% -2.4% $202 All U.S. Equipment -5.4% -1.7% $330 All U.S. Apparel -3.1% -0.8% $383 All U.S. Accessories -4.2% 4.2% $320 All U.S. Total Sales No Carryover -4.1% 0.4% $1,033
Equipment sales are up 2.4% in dollars, apparel sales are up 1%, and accessories are up almost 5% over last season's August to December sales. SIA said consumers continue to increase their sales online but that trend appears to be leveling off with increased dollars sales of 9.7%.
Overall, specialty shops' sales are flat season to date but equipment and accessories sales are up indicating that core skiers and riders still depend on the expertise only specialty shops can offer as a true value-add to real snow sports consumers. Equipment sales are down about 2% through December with significant declines in the snowboard category, but alpine, Nordic, and particularly randonee/AT sales are quite healthy. Weather patterns typical to El Niño drove sales in a colder and wetter southern region and healthy snowfall drove sales in the Northeast. Overall, the 2009.10 snow sports market was healthy and stable through the 2009.10 holiday season.
Channels
Snow Sports Specialty, $1.03 billion, down 4% in units and up .5% in dollars
Alpine ski equipment sales increased 2.5% in dollars on strong sales of fat skis (>80mm waist width), high performance alpine boots, AND high end bindings (DIN 12+). Carryover dollar sales of alpine equipment fell 14% for skis, 9% for boots, and 14% for bindings. Snowboard equipment sales were down 9% while snowboard carryover sales increased 25%.
Inventories in specialty shops were about 11% smaller for alpine equipment, down 8% in snowboard equipment, and down 3% overall compared to 2008 levels at the end of December. Sell through in specialty shops was at 42% for equipment, 48% for apparel items, and 40% for all accessories. Retail prices have increased about 4% overall in specialty driving better margins (1.2% increase) and ensuring better cash flow for specialty retailers throughout the season.
Internet, $410 million – up 3.5% units and up 10% in dollars
The Internet channel continues to grow but appears to be leveling off after three seasons of hyperactive growth. Online sales were up 3.5% in units and 10% in dollars season to date after posting gains of 28% in units and 26% in dollars as recently as August to October 2009. Equipment sales increased most with 10% growth in units sold and more 13% growth in dollars sold. Apparel sales saw a modest gain of 3% in units sales and 8% in dollar sales August through December. Accessories sales gains were up 3% in units and 10% in dollars so far this season.
Internet sales include sales through 'clicks only' establishments that have no brick and mortar shop for customers to visit, it's all online as well as online sales in shops with a brick and mortar location and a commerce enabled website for their customers. Many of the sales reported come from brick and mortar establishments that are reaching customers online and in the shop.
Chain Stores, $373 million, down 7% in units and down 4% in dollars
Chain store sales were driven primarily by apparel and accessories sales through the holidays. Equipment sales nosedived with 19% decrease in units sold and 16% decrease in dollars sold. Snowboard equipment sales were particularly hard hit with 21% fewer units sold and 22% fewer dollars sold. In fact, the only equipment category that showed any gain in chain stores were alpine flat skis that brought in almost 5% more dollars so far this season.
Chain stores sell far less equipment than specialty or online sales channels. In fact, chain stores sold fewer than 60,000 of the 370,000 skis sold so far this season. Even the traditionally strong apparel sales in chain stores decreased in December with declines of 9% in units and 3% in dollars sold season to date. Sales of accessories provided chain stores with the only gain in dollars sales, a modest 2% in dollars sold. Overall, consumers appear to choose chain stores less often for their equipment needs and chains are responding by minimizing their focus on equipment sales.
