While there were no reports of negative 40 degree temperatures in October, retailers and vendors alike were happy to see thermometers plummet across most of the country last month. At the same time, several major ski mountains were able to open their doors ahead of schedule in Colorado and the Northeast received its first dose of snow, with some areas reporting nearly a foot of the white gold. The early shift in weather this year has most of the country looking ahead to the looming ski season.
Based on data compiled by SportScanINFO, which collects point of sale data from major retailers across the country on a weekly basis, this cold snap is driving sales of outerwear up considerably. Overall outerwear sales from the retailers covered by SportScanINFO are up in the low-teens for the fiscal month of October. Sales of Jackets and Parkas increased in the mid-twenty percent range for the same period.
In the Outdoor category, sales of jackets and parkas more than doubled in October, with sales particularly strong in New England and on the Pacific Coast. Sales of Ski and Snowboard outerwear were up in the high teens for October, with most of the increase coming from the Pacific states.
When the Outdoor category is pulled out separately, it is clear that The North Face is the dominant brand. All of the top-ten best selling jackets and parkas are TNF products. In fact, out of the top 40, only three other brands make the best sellers list – Timberland, Columbia, and Mountain Hardwear.
In the outdoor category, the shift in consumer preferences is trending towards more premium product. The North Faces Denali Jacket, with a $150+ average selling price, is selling through faster than any other piece of outerwear on the shelf. This strength, along with several soft-shell pieces, helped TNF jump from a 66% market share in October of last year to a 75% market share for the same month this year.
Most of this gain seems to have come at the expense of London Fog and Columbia. In the face of this market share increase for TNF, only Mountain Hardwear and Timberland were able to incrementally increase their shares, comparing October 2005 to October 2006.
SnowSports jackets and parka sales are similarly dominated by Columbia Sportswear, with the brand taking all of the top ten best selling spots. Only Spyder Active Sports, The North Face, and Burton were able to get products into the top 40 best sellers list.
SnowSports consumers are also shifting their preference towards more premium product, and middle-market manufacturers and private label suppliers are paying the price. Unlike the outdoor category, several brands have been able to benefit from this shift. Spyder Active Sports and Burton are both grabbing share from the middle market quickly, with strong gains for the October financial month. The recent emphasis on SnowSports by many outdoor brands is also paying off, with gains coming from The North Face and Patagonia.
Likewise, there are several smaller, niche brands that are gaining momentum at the retailers who report to SportScanINFO. Coalision, the parent company to the Orage and Lolë brands more than doubled its market share for the month, while Helly Hansen more than tripled its piece of the pie.
This shift to premium branded outerwear has been relatively consistent for the past several seasons, and if October is any indication, it appears to be gaining momentum this year. While most winter hardgoods companies are essentially “snow farmers” for much of the winter, most winter apparel manufacturers rely on the thermometer with most of their success dependant on continued cold weather.
With average temperatures well below normal across much of the country for this time of the year, it appears retailers will get what they asked for, at least for the fall season.
