Outdoor industry sales this October remained flat to the same month last year, at $450 million, while units fell for the fourth time in six months, dropping 7%, according to the latest data from Leisure Trends. On the positive side, the 7% average retail-selling price hike off set the declines.
Only-online retailers grew October units, eking out a 1% increase. Chain stores fell 7% and specialty retailers contracted 10%. Price increases across all three channels blunted the weak unit sales, most notably online, where dollars sold rose 12%. Chain dollars shrank 4% and specialty dropped 6%.
Outdoor equipment and equipment accessory dollars grew 2% each to $49 million and $85 million, respectively, shows Leisure Trend data. Apparel dropped 1% to $246 million and footwear lost 3% to settle at $70 million. In potentially an early positive sign for the upcoming season, winter equipment dollars climbed 20% to $7 million. However, that volume remained well below the $8 million registered in October 2010 and 2011.
“If we combine the third quarter plus October, outdoor units dropped 5% and dollars rose less than 1% compared to the same period last year,” said Tom Jones, analyst, Leisure Trends. “By contrast, the first two quarters of this year rose 3% in units and 9% in dollars. So the Outdoor industry finds itself in the midst of a general slowdown.”
“We can’t blame the national economy and the government shutdown for Outdoor’s soft October,” Jones continued. “National retail sales rose at a healthy rate in October, according to just-released numbers from the Commerce Department, so we need to look elsewhere to explain what is happening at Outdoor.”
On the other hand, the somewhat-controversial closure of National Parks likely dampened some vacation travel plans and subsequently outdoor product purchase activity, suggesting the impact of the shutdown may have been more direct on the outdoor market than it was on retail in general.
Nonetheless, Leisure Trend sites several factors that could explain the late-season momentum loss. “The outdoor industry is struggling to woo apparel shoppers back from activewear specialty stores,” says the research firm. “No new innovations or enticing brands have risen to replace former growth drivers. And out-of-channel online retailers like Amazon present an increasing challenge as they attract more traditional specialty and brick-and-mortar customers.”
