Sales of outdoor equipment, apparel and footwear grew slightly in the 2009 retail fiscal first quarter thanks in part to rising consumer confidence and a move by families to new vacation options. Close-to-home recreation continued to play a major role in purchase decisions as consumers forgo expensive resort vacations and are looking for more affordable alternatives like camping and paddling.
Aggressive moves to liquidate carry-over and close-out fall/winter apparel product and going out of business and liquidation sales in the Northwest were also seen as reasons for growth in some key categories like outdoor outerwear.
According to retail point-of-sales data compiled by SportScanINFO for the fiscal first quarter period ended May 2, sales of outdoor equipment showed a low-single-digit increase with strong gains in average selling prices. Outdoor specialty footwear sales slipped slightly for the same period with a low-single-digit decline in overall sales in spite of a strong increase in average selling prices.
Apparel sales were the strongest, with a double-digit increase for the quarter and considerably higher average selling prices as outerwear sales continued further into the period as colder, wet temperatures persisted deeper into the spring this year and at least one key outdoor brand did not anniversary a low-end jacket program in the mid-tier department store channel this year.
As specialty retail remains more challenging than anytime in recent memory, the channel that is driving much of the growth in the outdoor market is clearly online retail. Outdoor specialty sales continue to grow online in nearly every category. However, the rate of growth has slowed compared to previous years and retailers are seeing new trends emerge among their customers. Many Internet site operators are seeing a move to more value, which may favor the online business due in to perception and also partly due to convenience.
“Of course the recession has impacted our sales,” said Marit Fischer, Communications Manager for backcountry.com, when discussing trends with The B.O.S.S. Report. “We are seeing changes in the way people are spending and in what they are buying. Seeking value is important from the customers point of view, so providing value is important from ours. But value-seeking is not synonymous with cheap-seeking. There is a difference. Customers are savvy. They are doing their research.”
According to the SportScanINFO data, first quarter online sales of outdoor specialty footwear were up moderately, with growth in all categories except outdoor casual. Light hiking footwear was the strongest category. Internet sales of outdoor apparel were even stronger than footwear, with double-digit increases in spring/summer casual apparel and lightweight outerwear. Sales of womens apparel are considerably stronger than mens, but both showed double-digit growth.
The strongest products in the equipment categories centered on backpacking. Cooksets, water containers (especially metal), and backpacking stoves all showed strong double-digit growth. Titanium cookware was especially strong. Retailers that spoke with B.O.S.S. supported the findings and offered some thoughts on why certain categories did well.
“We are definitely seeing a trend of people replacing some of their camp accessories such as water filters, stoves, and cookware instead of making as many early season “big ticket” purchases,” said Hud Knight, director of merchandising, hardgoods for Backcountry.com. “Tents, packs, and sleeping bag sales are starting a little slow but we are seeing trending that they are picking up as we get closer to the camping season.”
Paddle sports and fly fishing are also showed solid growth for the quarter.
Fly fishing in particular is showing some interesting trends. Separate rods and reels are out-selling fly fishing combos – a direct contrast to the trends in freshwater fishing. Likewise, sales of fly tying products are growing faster than sales of pre-tied flies. These two trends suggest that more experienced fly fishermen are upgrading their gear, or that the growth in fly fishing is transitioning from novice to experienced participants.
Average selling price trends in the data compiled by SportScanINFO point to consumers placing a higher emphasis on value. Durable, high-performance products at a reasonable price are driving average selling prices up. Consumers are looking for products that they can use for several seasons, and they are willing to pay more for that level of quality. For the quarter, average selling prices have increased significantly in backpacking equipment, sleeping bags, and technical packs. This shift is primarily due a trend among consumers towards higher quality, well established brands.
Mark McKnight, the ecommerce and marketing director for Rock/Creek Outfitters in Chattanooga, TN agrees with this assessment. “Customers are looking for value, which doesn't always mean cheap,” he said. People seem to be more considered in their purchases, and we're finding that motivated buyers are ready to buy immediately, so having the right size or color in stock has been critical.”
This shift towards value and the current economic climate are changing the way buyers make their decisions. Regarding the value equation, Backcountry.coms Hud Knight said, “Value is definitely playing a role in our purchasing decisions in the current economic climate. We are still offering a full range of products and price points, but are definitely focusing our dollars on value-oriented products from our vendors. The consumer is still looking to purchase from a brand that they can trust, but are doing a lot of research to decide which item offers the features they need at a great value.”
Mike Massey, owner of Masseys Professional Outfitters in New Orleans, LA, said that the economy is not only motivating him to look at buying decisions differently, but also look at inventory control. “We are landing product MUCH closer to the window that we plan to sell it,” Massey said. “We are relying much more substantially on ASAP orders, seeking to offset inventory risk. Once you land product, you bear 100% of the risk of it selling. Writing orders in programmed deliveries, and revising them before they ship gives us an option (like day-traders) and lowers our risk and increases liquidity.”
