Outdoor Industry Association announced the availability of its most recent Top Line Retail Sales Report. According to this study, the total 2003 annual sales for the outdoor segment through all distribution channels are $12.7 billion, up from $11.3 billion in 2001. Add in biking, skiing and fly fishing sales not specifically included in this report, and total industry sales reach $20.1 billion.
The study, which covers the 6 month time period of February to July 2004 and compares sales receipts information to that obtained in 2003 and 2002, further indicates that overall sales figures for these six months are relatively flat, but that units sold are up, indicating more is being sold at lower prices or at off-price retailers.
“Results show the strength of the outdoor industry is in all channels: the outdoors is ingrained in American culture,” said Frank Hugelmeyer, president of OIA. “The Top Line Retail Sales Report mirrors trends were seeing in the Participation Study: short duration and multi-sport activities are driving growth, and gateway activities (biking, hiking, camping, and paddling) leading the health of the industry.”
Key Sales Findings
Overall, total outdoor specialty and outdoor chain store 6 months sales totaled $2.5 billion from Feb-July 2004; overall specialty store dollar and unit sales increased while chain store sales declined (with the exception of the apparel category).
Added for the first time in this study, Paddlesports was found to make up 9% of total outdoor chain and specialty store sales (more than $232 million in the Feb-July 2004 timeframe), but the mix between chain and specialty stores is not equal: paddlesports comprises 25% of outdoor specialty store sales and only 2% of outdoor chain store sales.
Apparel makes up 33% of outdoor specialty and chain store sales and is the largest category of sales through these channels and the reason for overall growth. In particular, womens specific apparel sales have been growing and are cutting into unisex apparel sales. Both apparel dollar and unit sales increased over the Feb-July 2004 timeframe.
Equipment makes up 14% of outdoor specialty and chain store sales. While this category showed some sales revenue decline in the Feb-July 2004 timeframe, there were a few bright spots: recreation tents were the biggest sellers, especially in chain stores; synthetic sleeping bags (cool and warm) are doing relatively well at chain stores; and lower prices on down sleeping bags have encouraged sales, especially in specialty stores. Consumers seem to be shifting their purchasing preference for some equipment, like
climbing gear, from outdoor specialty stores to outdoor chains. This shift is likely the cause of the 12% sales decline in climbing gear at specialty stores for the Feb-July 2004 timeframe.
Equipment Accessories, a separate category derived from the Equipment category to better track accessories (e.g. first aid kits, lights, food), makes up 30% of total outdoor chain and specialty store sales, but was on the decline in the Feb-July 2004 timeframe. However, there are three growth leaders to keep an eye on: GPS, sport watches, and hands-free hydration.
Footwear makes up 14% of total specialty and chain store sales and saw some gain during the Feb-July 2004 timeframe, possibly due to the resurgence of sneaker and sport sandals as a fashion, not necessarily for recreation. Sandal dollar sales increased 21% from 2003 to 2004, with specialty stores seeing a 40% increase from 2002.
Retail Landscape Analysis
The Top Line Retail Sales Report also offers socio-economic findings that help put the sales information into perspective. These findings include:
- Aspiration vs. Inspiration-there has been a mindset shift from outdoor recreation participants being motivated by adventure and glory, to seeking peace and solitude in the outdoors.
- “Done-in-a-Day” meets “Fast & Light”-the number one barrier to outdoor recreation participation is lack of time. New products that are “fast and light” create opportunities for participants to pack more into available time.
- Women have Impact-sales of womens specific products have had a significant impact on the industry. Womens specific equipment, apparel and footwear amassed $875 million in 2004. Part of this increase is due to the new availability of womens products.
- The Outdoor Look-department stores cater to “outdoor” as a fashion statement and account for 24% of distribution sales. These consumers may represent outdoor recreation participants, next years outdoor enthusiast, or simply fringe customers who identify with the outdoors.
- Discounters Effect-the decrease in equipment sales at specialty and chain stores can be partially attributed to the availability of equipment at major discounters like Wal-Mart, Target and Costco. Discounters may be the retailer of choice for first time participants.
“Like all industries, the outdoor industry is continually adapting to the needs and desires of the consumer. The channel from which outdoor recreation participants buy and the type of gear and apparel they want will continue to change, but the bottom line is that Americans are involved in the outdoors and are willing to spend on outdoor activities,” added Hugelmeyer.
This report is the most recent retail sales trend study published by OIA. It was produced for OIA by The Leisure Trends Group. The study focuses on point of sale information from outdoor specialty and chain stores, but adds a consumer estimate of three new channels-general/mass merchants, department stores, and internet/catalog-to create a total industry estimate of the outdoor market.