The off-course golf retailing business consolidated significantly in 2014 following the acquisition of Edwin Watts and a slow down in golf participation and sales that has rocked Adidas, Dick's Sporting Goods and other major players, according to a bi-annual report by the Longitudes Group.

The off-course retail channel continues to be cut-throat all while consolidating as the effects of Worldwide Golf acquisition of Edwin Watts played out in 2014, according to 'the firm's bi-annual report on the off-course golf retail channel in the United States.

The merger forced more than 40 Edwin Watts locations to close, significantly impacting the entire US Off-course channel.  Longitudes Group tracked a net loss of stores in the channel at (-82) locations, a drop of 8.6 percent.  In addition to the Watts closings, fifty plus closures of independent retailers shows the relinquishing of control to the well-funded few. 

The retailers who were opening new locations were led by Golfsmith and PGA Tour Superstores.  The specialty golf channel is now dominated by the national chains as 76 percent of all square footage and 34 percent of the door counts are owned by multi-door retailers with store footprints over 10,000 square feet.

First released in 2004, Longitudes Group annually tracks the growth and contraction of the Off-Course retail market with this bi-annual report.  In the overall Off-course retail segment, 2014 brought good news for golfers and growth both in terms of square foot expansion and deep discounts as retailers tried to move gluts of inventory especially in the Woods category. Big Box chains were the lion’s share of the square footage growth with Golfsmith and PGA Tour Superstores aggressively opening gigantic stores in key markets.

Key findings of the current research include:

  • 47% of the gear sold last year in the US golf market flowed through the Off-course channel including $2.2B in apparel/soft goods and $2.9B in hard goods.
  • 76% of all square footage and 34% of the door counts are owned by multi-door retailers with store footprints over 10,000 square feet.
  • Total square footage of off-course retail increased by 1.9% to 8.6M square feet, while the number of total off-course stores decreased by 8.6% to 869 stores.
  • No single Off-course chain has adopted the full-spectrum of Omni-channel retail strategies that big box chains are embracing in other sporting goods and apparel sectors.  Golfsmith has a slight lead versus the three other national chains by offering consumers the option to check real-time store inventory on-line and pick-up in-store, often within two hours.  PGA Tour Superstores is the only chain offering free returns.

The market has been in a significant state of flux making both retailers and manufacturers nervous as significant amounts of market share are up for grabs in 2015.  “The largest participants may not be the most financially stable as we saw with the drop in golf sales from both TaylorMade and Dick’s/Golf Galaxy in 2014,” states Sara Killeen, President of Longitudes Group.  “The coming year will be a horse race with varying strategies between the largest retail chains.  Some will seek to win market share at all costs while others pursue financial stability via careful investing.”

The Research
Calls to retailers were conducted via Longitudes Group outbound research and call centers, based in Portland, Oregon.  These annual phone surveys establish a baseline count of stores, store size, and product categories carried. Retailers that have gone out of business, moved locations, or were incorrectly categorized as brick and mortar golf retailers are removed from the list or updated.  The definition of the off-course golf retail store model is a brick and mortar store with its primary business being the sale of branded and pro-line golf equipment, accessories and soft goods at a location not adjacent to a golf course.