Rebounding slightly from a stagnant August, outdoor product retail sales growth increased at a snail's pace in September, tied to still-warm weather patterns, lingering weakness in the economy and continued lack of consumer confidence.

Overall sales of all products sold through outdoor specialty retailers declined for the retail fiscal month of September ending October 3, 2010, driven in large part to shifting weather patterns in the U.S.  Still, the softness in the market can also be attributed to the lingering  weakness in the economy and continued lack of consumer confidence.

Sales of outdoor product through the outdoor specialty channels dipped  1.6% to $194 million for the fiscal month while overall outdoor product sales across all channels tracked by OIA VantagePoint were up 2.3% for the fiscal month, trending below the 4.5% year-do-date increase through fiscal August, but still up from the monthly growth rate for the month of August.  

Many outdoor companies have seen sales soften as consumers are buying based on “need versus want” criteria,” said Frank Hugelmeyer, president and CEO of Outdoor Industry Association. “As close-to-home participation in outdoor activities continues to grow, we are definitely seeing that impact in product sales, though we're keeping a keen eye on how consumers are choosing a more immediate, buy-now use-now approach with the products they are purchasing.”

As evidenced by recent panel discussions at OIA Rendezvous in early October, both Independent Outdoor Specialty shops and Outdoor Chain Specialty retailers have seen sales soften.  However, the negative year-over-year trend seen for overall product sales in the Independent Outdoor Specialty channel in   August did give way to a 3.7% increase for the five-week retail fiscal month of September for the overall product sales business, but still fell short of the overall trend for the year-to-date period.  A 7.6% decline in Chain Specialty overall product sales for the month – largely driven by weaker hardgoods sales – drove the overall sales decline for the outdoor specialty business.

The Internet/Catalog business again outpaced most other channels as consumers look for value and broader access to brands.  

Some analysts noted a correlation between the increase in Internet sales and the narrowing of brand offerings available in the retail market over the last two years as retailers were forced to make decisions on the breadth of brand and product offerings in the face of the tight economy and tighter credit.  The impact has not been felt in the Outdoor Apparel business – which was flat in the Internet/Catalog channel for the fiscal month – but both the Outdoor Footwear and Outdoor Hardgoods businesses posted strong double-digit gains for the period.

The gain in Outdoor Apparel sales helped lift overall Outdoor Apparel sales volume above Outdoor Footwear sales for the first time since early July.

Outdoor Footwear sales declined 1.1% during the retail fiscal month of September, as the lack of colder and wetter weather has consumers holding off on boot purchases.  

Winter Boots took the biggest dip, falling by more than a third as Sandals continued to sell well into the month.

Independent Outdoor Specialty stores posted a solid 6.9% increase to $30 million in overall footwear sales in the five-week fiscal month, attributed in large part to a later back-to-school buying season that drifted well into the month as many kids waited until school started before pulling the trigger on new looks.  In contrast, sales of all Outdoor Footwear product through the Independent Outdoor Specialty channel were only up 1.5% to $23 million for the period – well off the mid-teens growth trend seen for the year-to-date period.

Outdoor Apparel sales declined in the low-single-digits again in September, though Outdoor Apparel sales in the Independent Outdoor Specialty channel crept upwards 0.4% to $45 million for the month. Outdoor Sportswear products were negatively affected by the new -need versus want- approach that is currently driving consumer spending, and the lack of colder temperatures saw Outdoor Outerwear (specifically Insulated Tops) and Base Layers dropping by larger than expected margins as well.

The Outdoor Hardgoods business was a mixed bag in September as kids heading back to school and sports enthusiasts eager to tailgate started looking for new gear. Sales of Daypacks enjoyed a mid-single-digit increase, with Sling Packs and Laptop Day Packs both posting solid gains.  The only decline in this category was seen in Basic Day Packs. Also, coolers are a fan favorite this time of year, especially for those who are tailgating with friends. The category is up in the mid-single-digits in September, with double-digit gains in the large size sub-categories for each of the four cooler segments.

OIA members can access the OIA VantagePoint monthly trend report for September by logging in to:

www.outdoorindustry.org/vantagepoint

OIA VantagePoint is the first and only full market point-of-sale data view built specifically for Outdoor Industry Association members.  OIA VantagePoint provides comprehensive visibility into the outdoor marketplace by tracking weekly point-of-sale data from over 10,000 retail doors and websites carrying outdoor products, including over 350 outdoor specialty locations. In-depth sales information is available online within five days of the prior week close – a competitive advantage for businesses who can shift critical resources and react quickly to ever-changing consumer preferences.