If a stellar Black Friday and steady sales throughout the fiscal four-week month of November was any indication, consumers have finally returned to the aisles in search of discretionary items many at deeply discounted prices, of course (SEW_1048, SEW_1049).
The sporting goods market got an extra helping hand in November as colder (and in some cases, snowy) weather across the U.S. also got people into the stores to stock up on their “need” items for the winter season, including boots, outerwear and handwarmers, all of which posted strong double-digit sales growth versus November last year when warmer weather patterns tamped down sales growth in the cold weather categories.
It looks like it was the weather, rather than a shifting consumer purchasing pattern, that drove the hockey stick sales trend in the last week of the month that included Black Friday weekend.
On the specialty side of the business it appears that consumers are perhaps mirroring the trends seen in the luxury retail businesses as the “NPR Consumer” started to satisfy some of their “wants” last month by plunking down their credit cards on better discretionary purchases for themselves.
Finally, the month also experienced a boost in the sport footwear side of the business as the trend to athletic remained strong even as weather and some must-have gift items drove the outdoor footwear and winter boots business up in strong double-digits for the month.
Based on retail point-of-sales data compiled by SportScanInfo, a low teens increase in dollar sales in sport footwear in November this year was seen as rather impressive and exhibited a unique combination of the “need” and “want” factors in consumer purchasing trends that allowed strong fashion items like lightweight running, trend product like toning and Vibram FiveFingers and weather-related purchase in boots all combine to support a healthy month. Unit sales for the month improved in the high-singles, yielding a mid-single-digit increase in average selling prices.
The consolidated double-digit improvement in retail sales seen in the sporting goods business in November easily outpaced the 5.8% comp store sales increase posted in the broader retail market for the month, according to data from International Council of Shopping Centers.
Still, the channel trends in the sporting goods market are a real reflection of the overall consolidated retail market – luxury and specialty out-performed the low-end, department stores and family footwear took share on more aggressive (and earlier) promoting and the Internet is systematically taking share in the retail business, whether through the online operations of traditional retailers, through pure-play Internet players or increasingly through the direct online stores operated by the brands.
These look to be the new market realities — at least for the short term as consumers react rather than plan.
In sport footwear, The family footwear channel grew in the low-teens while full line sporting goods and the mall improved in the high-singles. The sport footwear categories driving the business for November were toning, with sales up nearly double; outdoor, up more than 30%; running up about 20%; and basketball improving about 10% for the month on a mix of launch timing. Toning, after some bumps and bruises over the back-to-school period, posted some strong numbers, as the category begins to lap the surge from last year. Toning dollars sales improved more than 85% while unit sales grew 1.5x on lower average selling prices. ASPs declined about 25% to $75 a pair, as retailers reacted to an over-inventoried position see by many, even as customer demand remained high.
Overall sport apparel sales were also up in the low-teens in November, driven by strong double-digit growth in outerwear, baselayers and tights and holiday gift items like sweatshirts and fitness/yoga product. Unit sales were only up in the mid-singles in sport apparel, reflecting a mid-single-digit increase in average selling prices for the month.
Sales were at a low point in the sports and fitness hardgoods business, presumably due to a keener focus on other big-ticket items like electronics and other entertainment items that were promoted heavily during the Black Friday week while fitness equipment and board games that were not heavily discounted sat idle. Based on feedback from a number of sporting goods retailers, there is an expectation in the market that the trend is these categories – and other stocking stuffer items like inflatables – will break later as consumers head to the big-box stores to round out the Christmas list. The lone bright spot in the hardgoods business was the sports medicine and protective gear categories.
The outdoor hardgoods business turned positive in November as the declines in the outdoor specialty channels grew last month after posting declines in October. The result was a slightly positive month for the consolidated outdoor hardgoods business as the outdoor specialty increases helped offset declines in the sporting goods retailers channel. Consistent with the overall retail market this holiday season, the real driver for the business last month was the Internet, which continues to post big gains across the board – especially in hardgoods. Growth also accelerated in the discount/mass channel, marking the channel as the other major beneficiary of the early holiday shopping trend towards lower prices.
