August Outdoor Retail Sales Disappoint

 

While the Consumer Confidence Index was up in August and overall retail sales increased, outdoor and active lifestyle retailers did not see any correlation between these metrics and sales in their shops.  Retailers that spoke with The B.O.S.S. Report felt that consumers were more prone to buy only items that were “needed” and did very little add-on shopping.

Overall outdoor product sales across all channels were essentially flat for the fiscal month of August ended August 28 according to retail point-of-sale data compiled by SportScanInfo. Anticipated back-to-school sales never materialized for many outdoor specialty shops as consumers ramped up savings and decreased spending. In addition, many states — desperate for additional tax revenue — cancelled their tax-free shopping holidays this year.

Based on the preliminary SSI data, presented through the SportScanInfo  and OIA VantagePoint™ research platforms, declining sales in the outdoor footwear categories were primarily driven by the Outdoor Casual Footwear category sold through family footwear retailers while other categories and retail channels experienced some limited success in the market. The barefoot phenomenon is clearly driving outdoor footwear sales, but many retailers are concerned about the long-term sustainability of the trend as they wait for customers to come back and buy their second or third pair. In addition to the trend towards minimalism, sales in the Trail Sandals and Surf/Beach Lifestyle Footwear categories were up double-digits for the month.

 

Approach shoes continue to see a strong upside to the minimalist trend in footwear, as the category was up in the double digits in August.
Light Hiking Footwear — one of the largest footwear categories — experienced low-single-digit sales increases during the fiscal month as Internet, Sporting Goods and Chain Specialty retailers saw success with the category. Sales of Technical Hiking Footwear were down for the month with declining sales in the outdoor channels partially offset by double-digit increases in sales from Sporting Goods, Athletic/Urban Mall and Internet retailers. 

Retailers are seeing much more seasonal sales this year compared to last year, when cooler, wetter weather boosted outerwear and rain gear sales.  Still, it’s not just the weather negatively impacting sales of outdoor apparel.

Last year, there were several “must-have” outerwear items driving consumers into outdoor shops for the back-to-school season. After a good run with aspirational brands, many young consumers may be starting to feel they no longer need to have a particular outdoor logo on their softshell or fleece jackets — and sales are starting to moderate for some key brands.

Outdoor Apparel sales declined in the low– to mid-single-digit range in August with the majority of the decline coming from Sporting Goods Retailers. In spite of the declining overall sales number, average selling prices are actually slightly higher than last year — even when comparing individual items year-on-year. This implies that retailers are maintaining margins — and hopefully profitability — in this difficult retail environment.

Outdoor Activewear sales were strong for the four-week month, with women's product out-pacing men’s. Outdoor Sportswear showed mixed results. Some sub-categories experienced strong sales increases while others stagnated. Women’s Active Lifestyle Dresses, Skirts and Skorts were all up in the double-digits for the month, as were men’s Short Sleeve Woven Tops.

Outdoor Hardgoods sales have been more impacted by the economy and high unemployment than any other category. However, there are some rays of hope. After several years of declining sales, the adventure travel categories are beginning to show some life again. Travel Packs/Bags and Accessories were up in the mid-single-digits for the month. In addition many adventure travel agencies are reporting sold-out trips as consumers look to spend their money on experiences instead of “stuff.”

Sales of big-ticket items like boats, tents and higher-end backpacks have slowed this summer after strong growth in the early part of the year when consumers felt a bit more optimistic. Price erosion caused by outsourcing has also negatively impacted dollar sales in many of these categories — particularly Technical Backpacks and Climbing Harnesses. In addition, retailers counting on strong back-to-school backpack sales were disappointed this month. Lifestyle and Technical Daypack sales were down in the mid-single-digits as consumers decided to use last year’s school bag for one more semester – or wait until school starts to make purchases.

Still, other more technical categories were relatively successful. Sales of Internal Frame Packs, Backpacking and Camping Stoves, Sleeping Bags, and other backcountry-oriented gear were also up for the month.
Sales of Hydration Systems were up in the high-single-digits in August as a combination of warm weather and new product introductions created demand and excitement at retail. Water Bottle sales increased slightly in August after two months of slight declines. While the BPA scare has clearly subsided, the water bottle category seems to be maintaining historically high sales volumes.

While August retail numbers were disappointing overall, the fact that specialty retailers have been able to maintain margins is promising for the health of the industry. Many retailers are heading into the fall season with inventories that are much cleaner than last year and therefore there is much less pressure to discount early. Back-to-school season has consistently been pushed back later and later as fashion-conscious students wait to see which label their friends are wearing before pulling the trigger on spending. This could shift much of the August business into September and make for a better month.
In the end, much of the success at retail will be more dependent on the weather this winter than anything else.