June was another difficult month for the outdoor market as the economic conditions that have kept many wallets closed over the past year continue to impact discretionary spending. In spite of some relatively optimistic numbers surrounding unemployment insurance claims over the past two months, consumer spending is not rebounding. Much of this is likely due to the on-going credit squeeze, higher jobless rates and unprecedented growth in the individual savings rate.


Based on retail point-of-sale data compiled by SportScanINFO, these macro trends added up to a high-single-digit decline in overall outdoor equipment, apparel and footwear sales for the five-week June fiscal retail month. Digging into the numbers, the declines seem to originate in non-core lifestyle items and larger-ticket, technical merchandise like outdoor fashion apparel, lifestyle packs and bags and technical packs. Equipment, accessories and apparel that is directly linked to an outdoor activity seems to be maintaining a relatively decent level of growth — with a few exceptions.


The footwear market, however, is running at odds with the trends in apparel and outdoor equipment. More lifestyle-oriented footwear is showing growth while Technical Hiking footwear and Hybrid/Watershoes declined.


Outdoor Specialty Equipment sales were down in the low double-digits in June. The declines were primarily driven by Travel and Lifestyle Packs and Bags, which together account for a hefty percentage of the overall outdoor equipment market. Technical Pack and Bag sales also declined in the mid-teens. Overall hydration pack sales were down, but this was caused entirely by a strong double-digit decline in hydration systems. Consumers seem to be upgrading their hydration reservoirs instead of buying new packs. Waist packs with bottles also saw strong growth during the month. 

 

One rep told BOSS the category is flying off the shelves in both running and outdoor specialty and has become his strongest hardlines category.
Several backpacking-specific items showed strong growth, as well. Cookware and Mess Kits sold well, but Backpacking Stoves saw double-digit declines. All sizes of Backpacking Tents saw double-digit growth during the month, with 1-2 Person Backpacking Tents seeing the strongest increase.


Both synthetic and down Mummy Bags saw mid-single-digit growth while Water Purification Filters and Tablets experienced sales increases in the mid-teens. Water bottle sales continue to exhibit significant growth. The category is lead by metal water bottles and insulated bottles, both of which had sales nearly double compared to the same month last year. BPA-free plastic – particularly Tritan – has taken over nearly the entire market in plastic bottles.


Paddlesports sales were down in the low-single-digits, but this number hides several strong sub-categories. Kayak sales continue to increase. Touring Kayaks were the strongest sub-category, followed by Sit-on-Top, Sporting and Recreational Kayaks. Sales of Canoes were down, but this was caused by a heavy drop in sales of inexpensive recreational canoes. Larger Trip Canoes saw strong sales increases.


Outdoor Apparel sales were up in the mid-teens during the month of June, with very strong results from outerwear — likely because of extremely wet weather throughout much of the Northeast and New England. Outdoor/Adventure Jackets and Parkas, Pants, Vests and the Rainwear categories saw double-digit sales increases during the month in both tops and bottoms.


Less technical apparel like shirts, pants, and tees saw less growth during the month but still posted a respectable low-single digit increase in each category. The exception in the more casual apparel categories was Outdoor Skirts, Skorts and Dresses, all of which saw very strong growth during the month.


Cycling apparel also saw strong sales growth during the month with cycling jackets showing the strongest gains. Vests, shorts and tops all saw double digit growth.


Outdoor Footwear sales were basically flat for the month, with a slight 0.2% decline. The declines were primarily caused by slow sales of outdoor sandals, again due to the wet weather in the Northeast and a much later start to summer throughout much of the Rockies. Excluding Sandals from the mix, Outdoor Footwear sales increased 2.6% in June.
Sales of all Outdoor Specialty Footwear this year have been heavily impacted by declines in Technical Hiking Footwear, Sandals and Hybrid/Watershoes.


Internet/catalog is the retail channel with the highest growth in the Outdoor Footwear business, while full-line sporting gods retailers saw a mid-singles gain and specialty posted a mid-single-digit decline for the month.


These declines were almost offset by strong sales in Performance Trail Running, which was up in the high-teens. Internet retailers drove most of the growth in Performance Trail Running product, but every retail channel saw considerable sales increases in the category. Fashion Trail Running only saw a low-single digit increase for the month, with specialty channel sales declining in the category. 


The more fashion-oriented Outdoor Casual categories were also showing increases for the month. Most of the increases in the Outdoor Casual category are coming from the mid-tier department store channel and the Specialty channel was up in double-digits.


Overall, the outdoor market is still experiencing a difficult year, but it continues to outperform many other markets. While brick & mortar retail channels are experiencing continued difficulty, many retailers with solid on-line platforms are experiencing continued growth. With back-to-school season ahead, retailers are preparing for one of the busier shopping season of the year -– one that will surely set the tone for the back-half of 2009.