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2009 Sporting Goods Sales Fall 3% | |
In spite of a 14% surge in shooting sports equipment sales, U.S. retail sales of sporting goods (footwear, clothing and equipment), which slipped 1% in 2008, fell 3% in 2009, according to the soon to be released NSGA report "The Sporting Goods Market in 2010." For 2009, sporting goods sales reached $50.7 billion and are forecast to rise 2% to $51.5 billion for 2010.
Had it not been for the strong shooting sports equipment sales, the declines in 2009 and 2008 would have been sharper. Minus shooting sports equipment sales, the declines would have been 4.5% and 3.8% respectively. In the past 25 years, the only previous decline in sporting goods sales was in 2001. That decline was less than 0.1%.
Athletic and sports equipment, which accounted for $24.38 billion in sales, showed a 2% decline. The Association is forecasting a 1% increase in equipment sales for 2010.
In 2009, athletic and sport footwear slipped to $17.07 billion, a 0.7% decrease. The Association is forecasting a 1% increase in footwear sales for 2010.
Athletic and sport clothing showed an 8.5% decrease, to $9.25 billion. The Association is forecasting a 5% increase in clothing sales for 2010.
Among equipment categories with sales of more than $1 billion in 2009, hunting & firearms showed the greatest percentage increase. Sales of hunting & firearms equipment rose 14% to $5.2 billion from $4.5 billion in 2008.
By only a few million dollars, exercise equipment remained the largest individual equipment category surveyed by NSGA. Sales of exercise equipment decreased 2% to $5.2 billion. Treadmills, which dominate the category, rose 1% in units and dollars.
Among other equipment categories with sales of more than $1 billion, only sports optics and camping showed increases. Sports optics rose 4%, to $1.07 billion. Camping equipment sales grew 2%, from $1.46 billion in 2008 to $1.5 billion in 2009.
In other $1 billion-plus sales categories, golf equipment and fishing tackle experienced double-digit declines. Golf equipment sales fell 19% to $2.84 billion. Fishing tackle fell 10% to $1.9 billion.
Fifteen of the 24 equipment categories surveyed by the Association last year showed declines. The balance (except for hunting and firearms) showed modest (2% to 8%) increases.
"The Sporting Goods Market in 2010" is a copyrighted NSGA consumer study that projects 2009 purchases of sporting goods products based on a survey of 100,000 U.S. households. National Family Opinion, Inc. (NFO) maintains the consumer panel used in the survey, which is balanced to parallel actual American household distribution as reported by the U.S. Bureau of Census, so that the data can be projected nationally.
The report comes in both printed and electronic formats.
"The Sporting Goods Market in 2010" is available for $295 for retailer/dealer members of the Association and free to manufacturer and sustaining members. For non-members, the cost is $340. For additional information, contact Dan Kasen, NSGA, 1601 Feehanville Drive, Suite 300, Mount Prospect, IL 60056-6035. Phone: (847) 296-6742, E-mail: dkasen@nsga.org. or fax: (847) 391-9827. |
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Snow Sports Sales Reach $2.94 Billion, Second Strongest Season Ever |
In spite of a poor economy, the 2009/2010 snow sports market finished up 4% over the previous season in totals sales. Snow sport retailers sold $2.94 billion this season compared to $2.82 billion a year ago. Although sales were up in dollars, fewer units were sold this season.
Total sales through all channels this season did not top the record breaking 2007/2008 season ($2.95 billion), but it comes in second highest in history for dollars sold. Apparel led sales this season with $1.1 billion, with accessories sales totals close behind at $1 billion. Equipment has been outsold by both apparel and accessories categories since the 2006/2007 season. This year, alpine, Nordic, and AT/Randonee equipment sales were up, while telemark and snowboard equipment sales slipped.
In snow sports specialty shops, sales finished at $1.8 billion -- down 3% in units and up 4% in dollars
Alpine ski equipment sales increased 5% in dollars on strong sales of fat skis (>80mm waist width), high performance alpine boots and high end bindings (DIN 12+). Snowboard equipment finished the 2009/2010 season in decline with unit sales down 7% and dollars sold down 4%. Overall, more dollars sold coupled with decreased units sales indicated some scarcity in the marketplace and the long awaited arrival of higher consumer tolerance for bigger price tags. Inventories are down 9.5% in specialty shops overall and down 15% in the equipment category at the season's end. Average retail prices for snow sports gear has increased 7% overall in specialty.
Internet sales reached $597 million -- up 1% in units and 9.5% in dollars. Overall, online sales are leveling off after three seasons of hyperactive growth. This season's 1% increase in units sales coupled with a 7% increase in average prices online indicate that this sales channel is well on its way to maturity. The channel continues to grow and equipment sales led the way with 10% growth in units sold and 15% growth in dollars sold. The snowboard equipment category realized its only sales gain in the Internet channel. Snowboard equipment sales increased 17% in unit sales and 20% in dollar sold during the 2009/2010 season. 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.
In chain sporting goods stores, sales reached $563 million -- down 4% in units and flat in dollars
Many chain stores are carrying less equipment this season and that is clearly reflected in the 18% decline in units sold and 13% decrease in dollars sold. Alpine sales were off 15% in units, Nordic equipment unit sales are off 29% and snowboard equipment sales are down 19% in units sold in chain stores this season. Even the traditionally strong apparel sales in chain stores have fallen off this season with declines of 4.5% in units and less than a 1% in dollars sold. Accessories like hats, helmets, goggles, and wax account for about 40% of all snow sports related sales in chain stores. Accessory sales have declined 3% in units but people spent 5% more dollars on them this season.
The Retail Audit data is gathered directly from the point of sale systems of about 1/3 of the snow sports retailers in the U.S. market. Each season, Leisure Trends gathers snow sports sales data from a representative panel of more than 1,200 snow sports retailers who provide sales data directly from their point of sale systems. The panel and the method for extrapolating the results out to the entire industry is based on a triennial census of snow sports retailers designed to accurately define the size and structure of the snow sports retail marketplace. SIA maintains these data for members, down to the product level. For more information about SIA's Retail Audit information, please contact Kelly Davis, SIA's Director of Research, at KDavis@snowsports.org. |
| Golf Rounds Offer Negative First Quarter | |
Although the northern tier of states in not yet considered in season, the first three months of the year are offering a challenge to the months following. After rounds played in the U.S. fell 20% in January and February, March 2010 vs. March 2009 slipped 3.7%, according to the National Golf Rounds Played Report. The reporting is based on data from operators at almost 3,000 golf facilities.
Year-to-date rounds played are down 12.4%.
Rounds played for the entire year of 2009 were down 0.6% versus the 12 months in 2008. For 2008, they were down 1.8%. For 2007, rounds played were down 0.5%; in 2006, they had been up 0.8%. |
| April Golf Weather: Two-Month Winning Streak |
Following very encouraging March weather, golf facilities were rewarded with yet another positive month as the April Golf Playable Hours (GPH) were up 20% for the total U.S. versus April 2009, according to Pellucid Corp.'s Weather Impact Tracking Report. That completely erased the weather deficit caused by unfavorable January and February months with the year-to-date GPH moving up to +6%.
The year-to-date weather impact breadth ratio results (measured as number of regions up compared against number of regions down) for April caused a shift in breadth from negative to positive now standing at 1.4:1. This is comprised of 23 regions up versus 16 down and six in the neutral zone. All 45 regions are now officially "in season" based on weather. The Great Lakes region is off to a strong start as is the Northeast while other key full-year season locations struggle on the weather front including the SE Coast, Florida, Gulf Coast, Texas and Southern CA.
For more specific information on Pellucid's Weather Impact capabilities, including a sample report and pricing, contact Jim Koppenhaver at jimk@pellucidcorp.com. |
Topline Reports on Outdoor, Athletic Apparel, Running, Dive, Paddlesports |
The NSGA Research Newsletter is highlighting information from the monthly Leisure Trends Group Topline Report, to which the company is providing free access for 2010. The report provides retail market intelligence to the following industries: Outdoor, Run, Snowsports, Athletic Apparel, Scuba Dive, Paddle (Canoe and Kayak). All data includes three years of continuous history and vital measures such as: units sold, dollars spent, average retail selling price, inventory units and dollars, sell-through and retailer margin.
Outdoor Overview -- Total 2010 outdoor year-to-date sales through March rose to $1.17 billion, up 11.7%. Growth was supported by growth in nearly every major product category in March. Outdoor chains were up 14% over last March and 5% over March 2008. Online sales also jumped 14% over last March and 30% over March 2008. Although specialty stores easily outpaced 2009 sales totals, gaining 8% for the month, they still fell short of the March 2008 totals by around 5%.
Athletic Apparel Overview -- With double-digit growth in March 2010 pushing sales to $130.9 million, athletic apparel 2010 year-to-date sales rose 15.1% to $338.0 million. The category covers athletic sportswear, licensed apparel, outerwear and base layer.
Running Overview -- With sales of $74.2 million in March 2010, running specialty year-to-date sales rose 14.8% to $180.8 million. March sales were 23% above the same month in 2009. Footwear, with 74% of total March sales, maintained the positive trends seen in previous months' sales. Road running shoes were up 21% in units and 24% in dollars for the period.
Dive Overview -- Total dive industry retail dollar sales were down 2% compared to March 2009, bringing year-to-date sales to $127.2 million. Declines came from merchandise (equipment, suits, apparel) which slipped 7% from last March.
Paddlesports Overview -- All paddlesport sales were $51.4 million year-to-date, a 4.3% increase from the same period in 2009. Growth was supported by a 14% growth in March sales. Growth came from all three store channels and nearly every major product category in March. Specialty paddlesport stores, which represent 80% of the market, were up 12% compared to last March.
Leisure Trends Group is providing free access to its Topline Report, thanks to a generous sponsorship from SnowSports Industry (SIA). Topline reports are delivered via LTG's new TRAKView™ interface, which features dashboards with options for analysis of retail sales data. You may register to use TRAKView™ at https://www.leisuretrends.com/websignup.aspx.
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| Operating Profits Decline at U.S. Ski Areas |
In the face of a 7.3% decline in gross revenues, operating profits retreated to $5.4 million per resort from $6.7 million, according to the 2008/09 NSAA Economic Analysis of U.S. Ski Areas. This represented a decline of 19.0% from the previous season.
Operating profit margin was 23.5% nationally, down from 26.9% the prior season. The larger the ski area, the more operating profit declined. Overall operating profit margins actually increased at two smaller resort size groups and fell slightly among midsized ski areas. In contrast, profit margins declined sharply at the largest group of ski areas. Additionally, pre-tax profit tumbled to $2.1 million from $3.6 million the previous season, a decline of 42.3%, largely due to an increase in depreciation and interest.
Last season, average gross revenue fell to $23.1 million per resort from $24.9 million in 2007/08. Average gross revenue was up only in the Southeast, up 2.2% to $21.4 million per ski area. Declines were moderate in the Northeast, down 3.8% to $17.7 million, and in the Midwest, down 4.2% to $5.2 million. In comparison, there were steeper declines in the Pacific West, down 9.2% to $21.5 million, and Rocky Mountain, down 9.4% to $36.4 million.
The 2008/09 NSAA Economic Analysis of U.S. Ski Areas is prepared for the National Ski Areas Association by RRC Associates and is reported in the April/May issue of the NSAA Journal. For a more complete analysis, segmented into various size and regional categories, a full copy of the Economic Analysis may be ordered online at www.nsaa.org.
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| Pre-Publication Pricing on NSGA Research Extended to May 14 |
NSGA's Sports Participation and Sporting Goods Market research reports are now available for purchase at significant discounts. You can save 20% on all reports ordered by May 14 (this Friday).
The reports include: Sports Participation in 2009, Series I, Series II and State-by-State; Sports Participation in 2009: Lifestyle Demographics; The Sporting Goods Market in 2010; and Sports Logo Apparel Market in 2010.
In addition, there are several combinations that make multiple reports available for less than the cost of the reports at their individual prices.
For your convenience, a brochure with details on all reports, as well as a secure order form have been placed on the NSGA website.
Just click on this link: http://www.nsga.org/i4a/pages/index.cfm?pageID=4324. | |
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