| Sporting Goods: Strength Amid Chaos | |
In spite of overall declines in sales the past two years, sporting goods sales were a bastion of stability in the recreation field.According to the NSGA Sporting Goods Market report, sporting goods sales were $50.7 billion in 2009 and $52.2 billion in 2008. These represented sales declines of 2.7% and 2.0% in those respective years.
Compare these declines to the recreational transport segment, also reported in the Sporting Goods Market.With recreational transport sales of $20.1 billion in 2009 and $28.3 billion in 2008, recreational transport sales plummeted 28.8% and 25.6% respectively.The recreational transport segment consists of bicycles, pleasure boats, RVs and snowmobiles.
In a longer term perspective, sporting goods sales in 2009 were 0.7% more than five years ago. Recreational transport sales were 47.2% below five years ago.In the past 25 years, the only previous decline in sporting goods sales was in 2001.That decline was less than 0.1%.
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.Shooting sports equipment sales rose 14%.
"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, Ext. 108; e-mail: dkasen@nsga.org; or fax: (847) 391-9827.
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| Monthly Report: April Sporting Goods Store Sales Remain Strong |
Following a sales surge in March, the Monthly Retail Trade Survey, prepared by the U.S. Census Bureau, reported a more modest growth for April in sporting goods stores. For the most recent reporting month (April), sales were $3.18 billion (preliminary), 5.6% ahead of April 2009. Sales in March had risen 12.1%.
Year-to-date sales are 5.8% ahead of the same four months in 2009.Year-to-date sales for 2010 are $11.5 billion.
Sales for 2009 were $37.7 billion, up 1.6% for the year.This was the slowest growth since 2002 when growth was 0.2%.Sales for 2008 were $37.1 billion, up 2.3% from 2007.Sales for 2007 reached $36.3 billion, up 6.3% from 2006 sales of $34.1 billion.Sales in 2006, up 10.6% over the previous year, represented the strongest increase in the past 10 years.
The estimated annual sales for sporting goods stores in the U.S. Census Bureau Monthly Retail Trade is consistent with sporting goods sales reported in the NSGA study "The Sporting Goods Market." The U.S. Census Bureau estimates are based on data from the Monthly Retail Trade Survey, Annual Retail Trade Survey, and administrative records and have been adjusted using results of the most recent economic census. The NSGA study is based on a sampling of 100,000 U.S. households.
For a full comparative chart of sales in sporting goods stores, visit the members-only "Research & Statistics" area of the NSGA website (www.nsga.org). |
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May CPI for Sporting Goods Languishes in Negative Territory | |
Continuing a pattern of the past several months, the CPI for Sporting Goods remained modestly negative while the CPI for All Items remained modestly positive. The CPI for Sporting Goods fell 1.8% in May following declines of 2.9% in April and 3.0% in March. The previous four months had seen declines of 2.0% to 4.4%. It had risen 0.3% in October. These seven months are the first in negative territory since June 2008 when the CPI for Sporting Goods turned positive and had remained there since then.
The CPI for All Items, which turned negative in March of 2009 and had remained there most of the year, rose 2.0% in May following a 2.2% rise in April and a 2.3% rise in March.
At 3.8%, the May spread is below the 5.1% April spread and the 5.3% March spread. It is also well below the 6.5% spread in February. The February 2010 spread between the two CPIs was the highest it has been since February 2009. In that month, the spread hit 7.3%.
For 2009, the Sporting Goods CPI averaged a 2.1% increase following a 2.3% increase in 2008. These are the first years since 2004 that the Sporting Goods CPI has shown a positive change from the previous year.
For 2007, the Sporting Goods CPI averaged a 1.5% decline. For 2006, it averaged a 1.3% decline. For 2005, the decline averaged 1.1%; for 2004, 1.2%; for 2003, 0.8%; for 2002, 2.6%. The Sporting Goods CPI reached its negative peak in December 1999, when it was down 5.8% versus the previous year.
In the past five years (2009 vs 2004), the Sporting Goods CPI average has risen only 0.6% in the face of a 13.6% rise in the CPI for All Items.
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| Retailers & Dealers Who Complete CODB Survey Will Get Custom Report |
It's that time again. The biennial NSGA Cost of Doing Business Survey form is now available online. Retailers and team dealers only need to invest about four minutes, and in return, NSGA will send them a personalized report analyzing the company's financial health.
This personalized, confidential Company Performance Report will show company results alongside those of the entire industry and of retailers or team dealers of similar size. It allows retailers and team dealers to compare expenses, margins, payroll & benefits costs, occupancy costs, sales per employee, and much more. If done by a CPA, the cost would be hundreds, perhaps thousands, of dollars.
The benchmarks that this customized performance report provides allows for quick identification of areas for improvement.
To receive the Company Performance Report, go to www.NSGAsurvey.com, choose either "Retailer" or "Team Dealer," and then fill out the form. To receive the customized report, just register while at this site.
The NSGA Cost of Doing Business Survey provides insights into the performance of the sporting goods industry, including information pertaining to sales by category, company profile statistics, accounts receivable information, profits and losses, balance sheet items and space and personnel productivity.
To complete the process, just send the requested company financials to Industry Insights, a research company that specializes in gathering retail financial data. No one at NSGA sees this information, which means complete confidentiality is maintained.
For more information, contact NSGA Vice President of Information & Research Thomas B. Doyle, (800) 815-5422, ext. 107, or e-mail: tdoyle@nsga.org.
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Topline Reports: 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 April rose to $1.47 billion, up 9.5%. Year-to-date outdoor chains were up 13.9% to $589.2 million. Online sales jumped to 341.0 million, a 15.8% increase year-to-date. Specialty stores, which command 42% of the market, rose a more modest 3.3% to $680.7 million.
In outdoor specialty stores, the highest growth came from the South, where total sales were up 11% over last April on the strength of equipment accessories and footwear. Also buoyed by equipment accessories and footwear, the Northeast and Midwest regions saw sales increase 7% and 5%, respectively, over April 2009. The West, accounting for 42% of all specialty channel dollars so far in 2010, gained 4% in overall dollars from last April. Regional data on outdoor specialty stores is a new feature of the report.
Athletic Apparel Overview
With an 8.7% growth in April 2010 pushing sales to $120.1 million, athletic apparel 2010 year-to-date sales rose 12.5% to $492.1 million. The category covers athletic sportswear, licensed apparel, outerwear and base layer.
Running Overview
With sales of $67.2 million in April 2010, running specialty year-to-date sales rose 116.0% to $248.3 million. April sales were 18% above the same month in 2009. Footwear, with 72% of total April sales, maintained the positive trends seen in previous months' sales. Road running shoes, the single largest running specialty category, were up 16.7% in units and 17.3% in dollars for the period. The average retail-selling price for a road shoe inched up 1% to $101 while retailers' average margin held steady at 44%.
Dive Overview
Total dive industry April retail dollar sales were up 2.9% to $57.5 million compared to April 2009, bringing year-to-date sales to $184.8 million. Year-to-date dive sales are 2.8% below the same period last year.
Paddlesports Overview
All paddlesport sales were $84.6 million year-to-date, a 10.5% increase from the same period in 2009. Growth was supported by a 26.5% growth in April sales. Growth came from all three store channels and every major product category in April. Specialty paddlesport stores, which represent 77% of the market, were up 7.2% year-to-date.
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. |
| May Golf Weather Neutral |
After two great weather months at the national level in March and April, Mother Nature took a breather in May. May Golf Playable Hours (GPH) were basically flat at -1% versus May 2009. Year-to-date GPH remained up slightly at +3% through May.
The May year-to-date weather impact breadth ratio results (measured as number of regions up compared against number of regions down) provided a perfect neutral regional breadth at 1:1. This is comprised of 18 regions up versus 18 down and nine in the neutral zone. The Northeast, Great Lakes and Pacific Northwest regions are off to strong starts while Florida, the Southeast and parts of the West Coast and Hawaii have been given poorer-than-previous-year weather with which to contend.
Looking back at the previously-reported April weather results vs. the Golf Datatech/NGF rounds played figures, the monthly Utilization Rate (UR) again took a hit registering 49% (comprised of an 11% increase in rounds demand against an 21% increase in GPH for the month) which put it four points shy of the 2009 year end benchmark. A number of markets registered UR declines in excess of five points including San Francisco, Denver, Houston, Tampa and New York City. On the UR winners front, no major markets registered gains of more than 5 points.
For more specific information on Pellucid's Weather Impact capabilities, including a sample report and pricing, contact Jim Koppenhaver at jimk@pellucidcorp.com. |
| Firearms Sales Indicator Renews Downward Trend | |
Renewing a downward trend that a slight rise in April had broken, background checks for firearms fell slightly in May, according to data from the FBI's National Instant Criminal Background Check System (NICS). The system showed background checks on the sale of firearms fell 0.6% in May following a rise 0.6% in April. In May, 1.016 million background checks were performed; in the same month in 2009, 1.023 million.
Year-to-date 2010 background checks number 5.9 million, down 2.5% from 6.1 million year-to-date 2009.
The unprecedented rise in background checks began in October 2008 and reached a record 1,529,635 requests for background checks in November 2008, a 42% jump over the previous November. For 2009, total background checks numbered 14.0 million, up 10.4% from 12.7 million in 2008.
FBI background checks are required under federal law for all individuals purchasing firearms from federally licensed retailers and are considered a strong indicator of actual sales by industry experts. |
| First-Quarter Tennis Shipments Rebound | |
While first-quarter Tennis Industry Association (TIA) racquet census reports showed racquet shipments flat (1.1% increase over same period '09), wholesale dollars for the quarter were up 19%, reflecting a growing trend in performance racquet demand and increasing price points. TIA Census reports also showed unit shipments of balls (6.2%) and strings (8.0%) up for the same quarter. At pro/specialty, racquets have been increasing monthly from 4% in January to a high of 18% in April compared to sales in 2009.
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