NSGA logo Research Newsletter                          

Compliments of the National Sporting Goods Association

March 22, 2012 - Vol 14, No. 3
In This Issue
February CPI for Sporting Goods Negative but CPI for All Items Positive
Management Conference & Team Dealer Summit Hotel Block Filling Quickly
February Weather: The Hits Just Keep on Coming
Bicycle Imports Show Big Drop in 2011
Revenue Per Skier Visits Up
The Digital "Bump" in Sports Media
Quick Links
Numbers from NSGA  
This newsletter is available for free to NSGA members and those interested in NSGA Research. It is transmitted by e-mail the third Thursday of each month.

 

NSGA research is available on our 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. To purchase any of the NSGA research mentioned in the newsletter, please feel free to contact me for more information. 

 

Dan Kasen

Director of Research & Information

dkasen@nsga.org

Ph: 847.296.6742, Ext. 108 

February CPI for Sporting Goods Negative but CPI for All Items Positive 

CPI February

The CPI for Sporting Goods was negative in February while the CPI for All Items was positive by the same percentage. The CPI for Sporting Goods fell 2.9% in February and follows declines of 2.9% in January, 4.4% in December, and 5.9% in November. On a positive note, the declines of 2.9% in January and February were less than any month in 2011. 

 

The CPI for All Items continued positive in February with a 2.9% increase. This followed a 3.0% increase in January and another 3.0% increase in December. The 2.9% increase matched the 2.9% decrease in Sporting Goods. The spread between the two indices was 5.8%. In 2011 the average spread between the two indices was 7.8%.

 

For 2011, The Sporting Goods CPI averaged a 4.7% decrease, following a 3.0% decrease in 2010. This is the second year in a row that Sporting Goods CPI has shown a decrease. It increased 2.1% in 2009.

 

In the past five years (2011 versus 2006), the Sporting Goods CPI average has declined 1.2% in the face of a 3.0% rise in the CPI for All Items. 

Management Conference & Team Dealer Summit Hotel Block Filling Quickly

If you haven't yet registered for the NSGA Management Conference & Team Dealer Summit, now is the time to do so! Many of the industry's top retailers, team dealers, manufacturers and sales agencies will be making the trip to San Antonio for the event, and we want to add you to the list of those companies attending.

 

Also, if you are planning to attend, the room block at the Conference & Summit hotel, The Westin La Cantera Resort, is filling quickly. Click here to make your reservations online, or call (210) 558-6500 (mention NSGA) to ensure you can take advantage of the event's special room rate of $175/night.  

 

Don't be left out! Register and reserve your room today!

February Weather: The Hits Just Keep on Coming

Aug_Maruman_DriverThe 2011-2012 "winter season" may very well go down in the history of recent memory as "the winter that wasn't."  February continued a string of incredible temperate weather with Golf Playable Hours (GPH) registering +29% vs. last February at the national level! That brings the Year-to-Date (YTD) GPH results to +40% vs. the same period year ago nationally. The regional breadth for the YTD period was significantly favorable at 19:1 with 19 regions having favorable weather against 1 region with unfavorable weather (the remaining 25 were either in the neutral zone of +/- 2% or out of season).

Looking back on January rounds demand as reported by Golf Datatech/NGF to calculate the facility Utilization Rate, it comes out mathematically as a big drop in Utilization but given that many areas had exponential gains in Capacity Rounds (CR), we know that it's unlikely in the transitional geographies that a doubling of the CR is going to produce a doubling of rounds. The YTD Utilization registered at 41% (comprised of a 24% increase in Played Rounds against a 57% increase in Capacity Rounds) which is 11 points lower than the 2011 year-end value.  In other words, we were able to capitalize significantly in rounds generation behind the favorable weather but not linearly.

 

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

Bicycle Imports Show Big Drop in 2011

Bicycle imports fell 21% through December 2011 Year-to-Date compared to 2010 according to U.S. Department of Commerce Data.  Total units imported through December were 15.6 million down from 19.8 million in 2010.

 

Imports of kids' bikes were down 25% to 4,716,749, with a value of $152.8 million, through December.

 

Imports of 27-inch and 700C bikes, however, increased 12% to 1,475,888 (valued at $458.1 Million) for the 12 months of 2011, compared to 1,323,584 units through December last year.

 

Average unit value of an imported bicycle rose 17.1% for 2011 from $72.42 in 2010 to $89.48 in 2011.

 

In 2010, 19.77 million bicycles were imported into the U.S., with a value of $1.43 billion. Unit imports increased 33.2%, and their value dropped 1.7%. 

 

In 2009, 14.84 million bicycles were imported into the U.S., with a value of $1.09 billion. Unit imports fell 19.6%, and their value dropped 20.2%. 

Revenue Per Skier Visits Up

Average gross revenue for U.S. ski areas increased 7.9% in the 2010/11 season. Total revenue per skier visit, or how much money on average the resort brings in per customer, was up 5.4% to $77.24 from the 2009/10 season according to the 2010/11 NSAA Economic Analysis of U.S. Ski Areas.

 

Ticket revenue per visit increased by 4% to $37.01, average non-ticket revenue per visit grew an even more 6.7% to $40.23. A positive sign indicating customers were willing to spend while at ski areas in 2010/11.

 

In 2010/11, the industry also witnessed a slight increase in the ticket yield ratio (the average amount that ski areas actually collect on lift tickets compared to the advertised ticket window full price). Ticket yield in 2010/11 was 56.9% vs. 56.7% for the prior season. This indicates that on average the consumer paid less than 57 cents on the dollar for a ticket.

 

Nevertheless, overall profitability for ski resorts was lessened by a 13.2% increase in total expenses. Operating profit rose to $6.3 million per resort from $6.2 million or 1.1%.  

 

The 2010/11 NSAA Economic Analysis of U.S. Ski areas is prepared for the National Ski Areas Association by RRC Associates and is reported in the February/March 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 http://www.nsaa.org

The Digital "Bump" in Sports Media

From the study, "Social Media and/or Online Viewership", sponsored by SBRnet, Princeton, NJ, the following table answers the question as to how much social media and/or online viewership adds to the total viewing audience. As shown below, digital media does the most to expand the audience beyond TV viewership for Minor League  Hockey, Minor League Baseball, and to a lesser extent, Rugby (Non-USA). For other sport categories, the digital audience "bump" is minor...less than 5%. 

 

Another interesting conclusion from the table...the great majority of fans for most sport categories view games either on TV or online, whether or not they actually attend games. The "attend only" segment of the fan market is very low, except for Minor League Hockey and Minor League Baseball...most likely due to the relatively low level of television exposure afforded these two sport categories.

 

 For more information about the complete report, contact richard@sbrnet.com or call 609-896-1996

 

Sport Category

Total TV Viewers

Digital* Viewers-Followers/Not TV Viewers

Total TV + Digital Media Viewers/Followers

Attended Only/Did Not View

Total Fan Market

College Football

104,507

4,736

109,243

4,660

113,903

MLB

107,798

3,816

111,614

8,116

119,730

Minor League Baseball

14,464

3,318

17,782

18,363

36,145

NFL

136,361

3,122

139,483

2,711

142,194

NHL

55,764

2,879

58,643

3,132

61,775

College Basketball

72,008

2,575

74,583

2,541

77,124

Minor League Hockey

7,645

2,400

10,045

14,551

14,596

Soccer (Non-USA)

37,442

2,216

39,658

420

40,078

NBA

73,003

2,075

75,078

2,716

77,794

MLS

37,772

1,812

39,584

752

40,336

NASCAR

40,400

1,786

42,186

1,164

43,350

Rugby (Non-USA)

11,652

1,498

13,150

240

13,390

IndyCar

31,634

839

32,473

918

33,391

Fishing (Pro-Bass)

12,921

825

13,746

697

14,443

Lacrosse (MLL, NLL)

7,410

408

7,818

550

  8,368

Source: SBRnet
 
For a full description of NSGA research available, go to the NSGA website, www.nsga.org, and click on Research. 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; email: dkasen@nsga.org.
NSGA: Serving the Sporting Goods Industry Since 1929