NSGA logo Research Newsletter                    Compliments of the National Sporting Goods Association

July 6, 2010 - Vol 12, No. 13
In This Issue
Used Sports Equipment Purchases Slip Again in 2009
Despite Overall Decline, NPS Visits up for Tent and RV Camping Year-to-Date
Leisure Trends: Outdoor Sales Strong in May
Golf Rounds Fall in May
June Golf Weather Neutral Following Neutral May
Complete the NSGA Cost of Doing Business Survey and Receive a Free Personalized Report
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This newsletter is available for free to NSGA members and those interested in NSGA Research. It is transmitted by e-mail twice each month.

 

NSGA research is available on the website (www.nsga.org). The Guest side of our website provides research for non-members of the Association. Additional information is provided for NSGA members. Remember to have your NSGA membership ID number handy when you login to the Member side.

 

NSGA Research Newsletter highlights information from NSGA research as well as from other sources.

 

Thomas B. Doyle

vp/information & research

tdoyle@nsga.org

Ph: 847.296.6742 

Used Sports Equipment Purchases Slip Again in 2009

Consumers purchased $952 million in used sporting goods equipment in 2009, according to a report just released by NSGA. This was a 2% decline from $969 million in used equipment purchases in 2008. This is the 12th study done by the Association on the used equipment market.

The used sporting goods equipment market had exceeded $1 billion in the two years prior to 2008. Sales were $1.08 billion in 2007 and $1.01 billion in 2006.  

Used equipment for the outdoor sports (camping, fishing and the shooting sports) represented purchases of $592 million, the largest single category. Versus 2007, the outdoor sports category fell 7%. Used exercise equipment (the second largest category) had purchases of slightly more than $180 million, a 14% increase versus the previous year.

In certain product categories, the number of units purchased is substantial. In exercise equipment, more than 650,000 treadmills and stationary exercise bicycles were purchased used. The average price is not high, $125 for a treadmill; $65, for an exercise bike. A majority of the sales continue to be between private individuals.

Because of the limited number of products surveyed, the total used equipment market is much larger than $952 million reported in the study.

"Purchases of Used Sports Equipment in 2009" uses the same panel as is used for NSGA's "Sporting Goods Market" report. The report is based on a survey of 100,000 households in which 39 products were surveyed regarding purchases during 2009.

The report provides information on the number of units sold, average price and total dollars as well as place of purchase information. Included in the place of purchase information are traditional channels of distribution as well as online/Internet purchases and purchases from private individuals.

The standard demographics provided for purchasers include age, gender, annual household income, education of household head and geographic region of the country.

"Purchases of Used Sports Equipment in 2009" is available to NSGA members for $140; for non-members, $190. For more information, please contact the NSGA Research Department, (800) 815-5422, Ext. 108, or e-mail: dkasen@nsga.org.

 

Despite Overall Decline, NPS Visits up for Tent & RV Camping Year-to-Date

National Park System
With a slight decline in May, the National Park System (NPS) reported year-to-date recreation visits had decreased 4.6% for the first five months of 2010. Recreation visits year-to-date declined to 90.2 million. Total visits in the first five months of 2009 had been buoyed by visits to the nation's capitol for the inauguration.

Year-to-date tent camping is up 2.8% to 645,700 visits; back country camping, down 12.1% to 409,600 visits; and RV camping, up 6.1% to 571,700 visits.

For the full 12 months of 2009, tent camping was up 6.0% (3.1 million) and RV camping was up 5.2% (2.1 million).  Backcountry camping was up a more modest 0.8% (1.8 million).

In 2008, backcountry camping was up 5.5%. Both RV camping and tent camping were down, 4.5% and 1.5% respectively.

 

Leisure Trends: Outdoor Sales Strong in May

For specialty outdoor retailing, sales reached $482 million for May, according to the Leisure Trends Group Topline Report.  This represents a 12% dollar improvement over May 2009.

Sporting goods chains led the way with a 21% increase, followed by the Internet which bounced up 8.2%. Specialty store sales remained about even with the same month last year. In 2009 specialty stores were holding their own against severe downward pressure caused by the sub par economy.

Internet sales passed the $100 million mark in May 2010 compared to $95 million in 2009. Within the three channels, chain sporting goods store sales were the most robust at $253 million -- 53% of  total sales.

The data come from the LTG's Topline RetailTRAK™ which is available free to retailers and suppliers for the remainder of 2010. To view, sign-up for the LTG report by clicking here.

 
Golf Rounds Fall in May

 
After a strong April (up 10.5%), May rounds played turned negative for the golf industry. Rounds played in the U.S. fell 2.9% in May, according to the National Golf Rounds Played Report. Year-to-date rounds are now down 3.0% through May. The reporting is based on data from operators at 3,870 golf facilities.

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%.

Regionally, the Northeast and Midwest are posting the most positive results year-to-date. New England is posting a 10.1% increase; the Mid Atlantic, a 5.3% increase. In spite of sharp declines in both Midwest regions, the East North Central region remains up 2.0%; the West North Central region, up 1.6%. 

Public access courses are showing a smaller decline year-to-date than private courses. Public access courses are down 2.4%; private courses, 4.9%.

 

June Golf Weather Neutral Following Neutral May

Neutral, Neutral.June landed safely in the neutral zone with Golf Playable Hours (GPH) basically flat at -2% versus June 2009, according to Pellucid Corp.'s Weather Impact Tracking Report. May had also been in the neutral zone, down 1%.The June decline slightly eroded the year-to-date GPH, which also dipped into the neutral zone at +2% through June after being in positive territory since April. Beneath the neutral GPH results is weekend unfavorability year-to-date of -2%, which weighs heavily on both the rounds and revenue results.

 

The June year-to-date weather impact breadth ratio results (measured as number of regions up compared against number of regions down) provide a perfectly balanced regional breadth at 1:1. This is comprised of 17 regions up versus 17 down and 11 in the neutral zone. The Northeast, Great Lakes, Ohio Valley and Pacific Northwest regions are off to strong starts while the Southeast, Texas, the Rockies, Southwest and Hawaii continue to struggle with less favorable weather than last year.

 

Looking back at the previously reported May weather results versus the Golf Datatech/NGF rounds played figures, the monthly Utilization Rate (UR) registered a slightly subpar reading of 52% (comprised of an 3% decrease in rounds demand against an 1% decrease in GPH for the month). This  puts it one point lower than the 2009 year-end benchmark. That brings the YTD UR down slightly to 50% or 3 points below the 2009 mark.

 

For more specific information on Pellucid's Weather Impact capabilities, including a sample report and pricing, contact Jim Koppenhaver at jimk@pellucidcorp.com.

 

Complete Cost of Doing Business Survey and Get Personalized Report

It's that time again. The biennial NSGA Cost of Doing Business Survey form is now available online. Invest about four minutes, and in return, NSGA will send you a personalized report analyzing your company's financial health.

 

This personalized, confidential Company Performance Report will show the results of your company alongside those of the entire industry and of retailers similar in size to your own. It allows you to compare expenses, margins, payroll & benefits costs, occupancy costs, sales per employee, and much more. If you asked a CPA to do this for you, the cost would be hundreds, perhaps thousands, of dollars.

 

The benchmarks that this customized performance report provides allow you to quickly identify areas that you can investigate for financial improvement. To both survive and thrive, you can use these measures to help focus your efforts.

 

To receive the Company Performance Report, go to www.NSGAsurvey.com, register and 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 your response, 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.

 

For a full description of NSGA research available, go to the NSGA website, www.nsga.org, and click on Information Center & Statistics. NSGA research reports are available to purchase on the NSGA website or by contacting Dan Kasen in the NSGA Research Department, (847) 296-6742, Ext. 108; e-mail: dkasen@nsga.org.
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