Vann's, a 50-year-old appliance and electronics store and the largest independent retailer in Montana, is venturing into outdoor retail with the planned launch of www.bigskycountry.com in a move that is vexing many of the states outdoor specialty retailers.
 

The site, which will go live in early 2011, promises to address hiking, biking, skiing, snowboarding, fishing, hunting, football, basketball, track and field, floating, kayaking as just some of its categories. “The possibilities are endless in Big Sky Country. We are a team of active outdoor enthusiasts in love with Montana and living out our dreams under a sky large enough to contain her majesty,” reads the company's website.

According to the Missoulian newspaper, the primary concern by outdoor specialty retailers is that Vann's will use its buying clout to undercut smaller outdoor shops across the country – much as it has done in the electronics category.  Last December, Consumer Reports ranked Vann's No. 1 in the category “Best Electronics” for online retailers.

Tood Frank of the Trail Head in Missoula shared his concerns in an open letter to vendors, which he shared with SportsOneSource. The full letter follows:

October 7, 2010

To all concerned vendor partners,

My name is Todd Frank; I own and operate The Trail Head a specialty outdoor retail store in Missoula MT.  I am writing this letter to point out what has become an alarming trend in my business, that being the need to write letters like this at all.  I am increasing amounts of valuable time fighting to sustain sensible vendor relationships rather than training new help, holding clinics for a stronger sales staff and just keeping up the good work in the outdoor specialty realm.  (NEWS ALERT: Vann's TV and Appliance is planning on being in the outdoor business) In our wildest dreams how could this even be a possibility in Montana?

Montana has an extremely well represented outdoor equipment and clothing retail network. Our network of businesses represents Billings to Bozeman to Butte to Helena to Great Falls to Kalispell and Whitefish to Missoula. There is no lack of product and representation covering the entire realm of outdoor pursuits in Montana. That being noted and easily proven, why would any group of sensible vendors go off the deep end or be interested in opening a COMPLETELY inexperienced new retailer, web based or not. The web based world is even better covered and more competitive than our brick and mortar to the point of absurd.

All of us retailers in Montana have felt the dynamics of our new economy and we are all adjusting for the realities of a sustained downturn which means running leaner and meaner so we can all still have a bottom line in the right color. The strategy of continually opening new doors is an extremely short sighted vision with nothing to gain in the long run. On the contrary there is havoc to follow. The excuse of 'if we don't do it someone else will' is a useless and baseless spin on what should be a plan to sustain good healthy relationships with those folks who built you.

What industry has not done damage to itself by over expanding? Most of our current economic conditions exist because of 'too much' instead of well managed. For those of you who follow the more doors is better policy realize you will be trading dollars and doing damage to the fine network of retailers in Montana. Collectively we have been showcasing your products, educating Montanan's and supporting the existing outdoor entities and environment in Montana.  When the time comes for more retailers to throw in the towel or slip into an unhealthy state you will not be able to ignore that you had a direct hand in the outcome.

In the business realm LOYALTY is rare these days. There remain some companies who have a realistic view of who they are, where they came from and who helped them get there. Rest assured we know who these companies are and we will be loyal to them.

In conversations as a collective group of retailers we want to point out the following for you to consider when making decisions that will clearly affect all our businesses:


  • Montana is already grossly over retailed both brick and mortar as well as online.
  • This is a prime example of the economics of too much instead of well managed.
  • You will be trading Dollars with us as well as current online business partners.
  • You are considering doing business with a group who has NO knowledge of the outdoor industry, except what they have taken from clients they have done web development with and a few they have hired lately in order to put up a good marketable front.
  • Loyalty, please respect the loyalty we have offered you in trying to build your business as well as ours.
  • Vann's eventual need to have a brick and mortar 'outlet' style store to deal with excess merchandise.
  • Make note that Local retailers give back to communities and strive to grow participation locally.  A web-only retailer like Vann's, who is getting into sporting goods purely as an added revenue stream to combat their lagging sales in electronics and appliances, has very little or no incentive to truly support the industry.
  • They say they are a group of passionate and avid outdoor enthusiasts.  How well do you really know them?  Is it the truth or 'just a good sales pitch''
To those of you who are seriously considering this new inexperienced possibility I implore you to snap out of it and come to reason with those of us that have been going to work everyday supporting you by offering us the same in return. The future can be stable for all of us with good decisions as the basis of our reason.  I am confident you will be hearing a similar story from all of us who have worked for years to offer the consumers and vendors we deal with the best service possible.  I hope you can do the same.

Todd Frank
Owner
The Trail Head
Missoula MT
Providing outdoor gear and information since 1974