Its an annual ritual. Whether sales curves resemble a Hollywood starlet or an economists worst nightmare, outdoor specialty retailers are finalizing plans to attend the Outdoor Retailer Summer Market in August.
With daily talk of a national financial recession, and gas prices soaring to $4 per gallon and beyond, retailers are already dealing with a challenging business climate. But its not all doom and gloom.
According to Dave Matz, president of the Grassroots Outdoor Alliance, “Business is mixed nationwide. There are certainly pockets that are flat or down, but I also have members who are posting strong double-digit growth. Black Creek Outfitters in Jacksonville, FL, had a publicized sale and did okay on it. On Memorial Day, they did zero advertising and had a record-breaking day.” He adds, “Its very difficult to define whats going to be successful and whats not. Overall, shops that are staying engaged with their customers with events like womens night or family night are posting better results.”
After holding a pre-OR show meeting, Matz reports that his Alliance members are upbeat. “We will be buying into a recovery phase, so we will be somewhat optimistic. Price increases are something [retailers] are concerned about, but at the same time, its an opportunity to bring in new product to appeal to people. Heres new product: yes, it may be more expensive, but its something totally different. Its all about innovation.”
On the show floor, specialty retailers looking for that innovation will literally have to take a new path. The familiar white fabric pavilions outside of the Salt Palace were absorbed by the convention centers recent expansion. To accommodate all vendor space demands, Outdoor Retailer show planners have moved more than 200 new exhibitors to the Energy Solutions Arena (formally the Delta Center).
Outdoor Retailer show director Kenji Haroutunian explains the rationale for the split exhibits. “Its a strategy borne of necessity. Some other trade shows feature new brands in the center of their shows. This show is so packed, everyone is butted against everyone else. Theres just no place to feature even a small group of new products,” he says. “The question then is who goes on to the edges in the meeting rooms and the outbuildings. There isnt a single category that fits logically there.”
Matz sees the move as problematic. “Thats very inconvenient. To have the retailers get on a shuttle bus and drive there? First, lets talk about economic impact. Second, convenience. And third, lets talk about who this show is for. Id much rather see new vendors in the main center and get rid of all manufacturer representatives. Theres no reason for them to be there. None. That is a manufacturer convenience thing, and this show is about convenience for retailers,” he states.
But Haroutunian defends the move, explaining, “One of the main value points of Outdoor Retailer is to see a whole bunch of new brands in the market that will be the GoLites or ArcTeryxes of the future. For retailers to get a glimpse over there and meet some people is an important part of the business, and OR is the only place where thats going to happen. Youre not going to get that driving to a regional show or surfing online or through other prospecting techniques. Thats why Outdoor Retailer is the most important show to retailers in and around the outdoor industry.”
Haroutunian continues, “It [Energy Solutions Arena] replays the old pavilion treatment that we have done in the past. The buyer could go see a lot in a specific amount of time in one place. Its an unfortunate situation that we have in the Salt Palace for Summer Market. If it were up to us, we would have loved to have a big, giant rectangle. Thats how all the tier one halls in the country are made.”
QUESTIONS ON THE HORIZON
The show dates were moved up in 2008, and another scheduling shift is planned for 2009, all of which is causing Matz some concern.
“I dont think they can move it any further forward. If you look at resort shops, they are just starting their season. Stores in the Sunbelt and in more temperate climates are still selling summer goods all the way into August, September and part of October. Expecting solid orders in July is going to be a crystal ball. Its your best guess,” says Matz. “If vendors are going to have deadlines that are pre-August, they are going to have to accommodate adjustments.”
The simple truth is that Salt Lake City, despite its hospitality and access to outdoor recreation venues, may be getting too small for Outdoor Retailer shows. “One of the things that has to be addressed is the expense of attending the show,” says Matz. “When hotel rooms are running $100 to $150 per night, coupled with higher prices everywhere, that doesnt make it easy for retailers to attend. It actually discourages participation in my personal opinion.”
Haroutunian responds, “Salt Lake City is well aware of the challenges Outdoor Retailer puts on it. Whether it is restaurant reservations or getting the size and shape you want in the show, they are all tied to the infrastructure of Salt Lake City. There are wonderful features to Salt Lake, without question, but its definitely an issue that is paramount in the minds of the OIA and Outdoor Retailer, which are working together to envision the future of the show.”