Industries America (SIA) Retail Audit Report, Snow
Sports market sales reached $2.26 billion in January with a 0.4% gain in
dollars sold compared with August through January last season.
Significant declines in the West and Northeastern region sales,
particularly in snowboard equipment sold, resulted in flat dollar sales
overall, despite significant gains in the South.
Reduction in carryover
sales, coupled with more purchases of current season model equipment
and apparel, kept dollar sales in the green even as the number of units
sold declined 7% overall.
However, the news in January was not all bad. Customers were more
likely to buy this season's models rather than closeout models as
inventories of closeout equipment shrank. Specialty shops increased
their margins and saw significant declines in inventory through
January, resulting in improved cash flow and reduced risk of carrying
extensive inventory at the end of the season, which would need to be
sold off at or below cost. Weather patterns typical to El Niño drove
sales in a colder and wetter southern region, but hampered sales in the
Rockies and in the warmer than average Northwest. Weather will continue
to drive sales as late season snow returns to the atypically dry
Rockies and the results of record snow in the South and Mid-Atlantic
are realized in the market.
Quick Trends
- Fat Skis - current season model sales increase by more than $4.5 million
- Reverse Camber Snowboards - 4 of the top 5 selling boards this season are rocker boards
- AT/Randonee Skis - unit sales up 58% to 4,842 skis
- High Performance Alpine Boots - up 16.5% in units and up 19% in dollars sold
- Snowshoes - sales up 7% in dollars with 117,887 units sold in snow sports shops
- Alpine Tops - up 2% in dollars sold compared to an 8% decrease in dollars sold for snowboard apparel tops
- Insulated Apparel - cold and wet weather results in sales increase of more than $16 million
- Helmets - continue to be the hottest category in the market with 897,315 sold
so far this season. Retailers are making more per helmet units and unit
sales are up 26% for almost $16.8 million more dollars sold through
January 2010. Helmet sales are on track to hit 1 million units in
2009.10 season - Winter Boots - fashion trends are driving a 22% increase in dollars sold
- Sales in the South - El Niño brings colder and wetter weather to the southern U.S. and
cold southerners are buying plenty of gloves, hats, and parkas to get
through the winter. Record snowfall in February is expected to drive
very strong sales in this region in February.
Regional Results
For the first time, SIA will provide
members with information throughout the season about sales in the
Northeastern, Western, Midwestern, and Southern U.S. regions.
Channels
Snow Sports Specialty, $1.33 billion - Down 7% in units and up .3% in dollars
Alpine ski equipment sales increased 2% in dollars on strong
sales of fat skis (>80mm waist width), high performance alpine
boots, and high end bindings (DIN 12+). Carryover unit sales of alpine
equipment fell 17% for skis and 10% for boots. Snowboard equipment unit
sales were down 10% and dollars sold were down 8%. Many snowboard
buyers are looking for a bargain and snowboard carryover sales
increased 26% in units and 29% in dollars. Inventories units declined
9% overall through January this season. Equipment inventories were off
13% overall led by a 19% decline in alpine equipment units in
inventory. Specialty apparel inventories were down 7% while 9% fewer
accessories sat in inventory through January this season. Sell through
in specialty shops was at 52% for equipment, 57% for apparel items, and
51% for all accessories. Retail prices have increased about 7% overall
in specialty driving better margins (1.4% growth) and ensuring better
cash flow for specialty retailers throughout the season.
Internet, $478 million - Down 2% in units and up 7% in dollars
The Internet channel showed its first ever decline in sales with a 2%
dip in units sold August through January this season. Although this
channel continues to expand in dollars sold, unit sales are down and
overall sales are leveling off after three seasons of hyperactive
growth. Equipment sales increased most with 10% growth in units sold
and more 13% growth in dollars sold led by the snowboard equipment
category that realized its only sales gain in the Internet channel.
Snowboard equipment sales increased 16.5% in unit sales and 15.6% in
dollar sales online August through January. Internet sales include
sales through clicks only establishments that have no brick and
mortar shop for customers to visit as well as online sales in shops
with a brick and mortar location and a commerce enabled website for
their customers. Many of the sales reported come from brick and mortar
establishments that are reaching customers online and in the shop.
Chain Stores, $449 million - Down 9% in units and down 4% in dollars
Chain store sales were hardest hit through January of this
season with declining sales in every category of equipment, apparel and
accessories. Equipment sales continued their nosedive with a 17%
decrease in units sold and a 9% decrease in dollars sold. Snowboard
equipment sales were particularly hard hit with 21% fewer units and
dollars sold. In fact, the only equipment category that showed any gain
in chain stores were alpine flat skis that brought in just 2% more
dollars so far this season. Chain stores sell far less equipment than
specialty or online sales channels. In fact, chain stores sold fewer
than 16% of all skis sold so far this season. Even the traditionally
strong apparel sales in chain stores decreased in January with declines
of 10% in units and 3% in dollars sold season to date. Sales of
accessories declined 7% in units and chain stores realized a very
modest gain of 1.3% in accessories dollars sold through January.
Overall, consumers appear to choose chain stores less often for their
equipment needs and chains are responding by minimizing their focus on
equipment sales.
