future of golf equipment retailing

[square]

#1 big square footage stores have closed and will continue to do so, before long there will be no remaining large square footage golf equipment stores.

#2 major brands such as Titleist, Ping, TM, Callaway wil increase their mobile van/bus fleet to do more on course and driving range 'demo days'

#3 with no more retailer storefronts to "protect', Titleist, Ping, TM etc.... will sell directly to consumers

 

Agree, disagree ?

[dan360]

You mean like it used to be when we bought our gear at the pro shop?

It's an economic self correction. Golf is not the #1 mostest coolest thing to do right now. I think for 2014 it will be curling. Specifically Russian women's curling. damn...

[jabrch]

Big retailers will still survive in big markets. Maybe there will be fewer of them (i.e. no need to have a GS, a GG and a PGATSS all within a mile of each other), but they will survive. The OEMs don't have the resources to be out there and deal 1:1 with every customer - they need the retailers - even though their relationships can be challenging.

[jerryo]

The big box stores around me are doing plenty of business and we have 3 feet of snow on the ground.

[IvanDAG]

I have a few problems with your suggestions here,
#1; The closing of large retailers is nothing new and is driven by the economy. It happens in all aspects of retail, there is always an ebb and flow. This will always occur and is not a major factor.

#2: The increase of bus and vans is great and will definatly suppliment the industry, but there is always the problems with schedules and timing. Remeber people all have their own jobs and coordination of the desire to purchase, with the time avaliable, will not always coinside with the schedule of the demo bus or van.

#3: Name brands are always in demand, the reatiler can influence it, but word of mouth and paid advertising are the biggest influence in every industry.

Just my take on things. This ebb and flow of retail has always occurred in every facet of retail. Stores large and small open/ close and change every day.

[dan360]

It's all TaylorMade's fault. They made too many game-changing clubs too close to each other and now everyone is confused.

I mean, people are actually keeping their driver for a couple years. wha?

See, they needed to be more like Callaway. Make something cool, then a dud, then another dud, then another dud, then partner with Lamborghini, then be cool again. Give people a chance to want to buy something else.

[IamMarkMac]

[quote name='dan360' timestamp='1392651295' post='8686111']
You mean like it used to be when we bought our gear at the pro shop?

It's an economic self correction. Golf is not the #1 mostest coolest thing to do right now. I think for 2014 it will be curling. Specifically Russian women's curling. damn...
[/quote]

Anna Sidorova proves that I'll pretty much watch a beautiful woman do anything, lol.

[dcr147]

Interesting topic, and being a golf professional myself, these are situations that need to be looked at. I'm all in favor of the OEM's having more qualified tech rep's available to do demo's.. Demo Days sell clubs for us, much more so than if we didn't have them. The obvious advantages that BBS have over smaller golf shops is buying power, inventory and computerized programs that spit out launch angle/ spin rates. The golf companies have done a better job with pricing making it easier for the smaller guy to carry more inventory and to help move it around if needed. With specific pricing terms, we are basicly selling items for the same price. We can't stock nearly as much inventory as a BBS can and I would venture to say that most don't have the expendable income to purchase launch monitors, trackman, etc. or the time to perform these services during a full workday.

As for the companies selling to individuals, I don't see it. What would be great is for the OEM's to sell the club heads and maybe some of the shafts to green grass professionals which could be sold to WRX type golfers. Better players seem to want to tinker, fix, reinvent..... This is a market that hasn't been tapped yet but could bring more profit to the golf companies and professionals and give the customer another option.

[BrianL99]

Tom Wishon & I are talking about that exact subject on PM. Tom obviously has some insight that he might share.

As for my always less than humble opinion:

The TaylorMade business model is not sustainable in a shrinking sport. Look for TaylorMade to change their business model in the next 5 years.

Dick's is the Big Box model for the next 10 years. Full service sporting goods.

Look for Golfsmith to diversify into other sports.

I think there will be room for the boutique OEM's like Scratch, if they play it smart.

Green Grass shops will become primarily soft good retailers.

Hopkins Wedge is a sensational business model, watch for copycats.

Just my opinions, your mileage may vary.

[setter02]

Big Box retailers aren't the issue, it's the constant turnover in equipment that is a joke. Although the Canadian market is small, we're getting to the point where the OEM's are releasing gear at the end of our season, and it is on sale before the start of the next.

Look at the state of used clubs, they've diluted the value of their products so much that sales with only continue to stagnate as people only have to wait a few months, not a year to wait for a deal.

The gains being offered up by the OEMs is so small, that a well fit driver or set of irons will perform well for a very long time.

Big box retailers are also the largest accounts that the OEMs have.

[matchavez]

The future of golf will look like a suit shop. We have these you can try on... you can buy them and take them, or you can have them tailored.

I'm waiting for a big box store to start doing a unified type of fitting... think Ping factory fitting, but with any club. That won't require as much square footage. However, for it to work, you're going to need techs that know what they're doing, and companies willing to do it for "free", or nearly free.

Imagine those stats you get from your fitting are waiting for you on a profile in a web store. Once that profile is there, you can get custom any brand and the store takes care of the brand-to-brand customising.

[cgasucks]

Golf as a sport is not growing, but stagnant at best with a limited demand, its a game of muscial chairs, not everyone will have a seat once the music stops, because of this, watch out for the smaller OEMs gobbled up by the bigger ones (TM buying Adams, Ashworth is a great example)...I predict Callaway is gonna be next...

[chrisntab]

I say we see each manufacturer cut out the middle man. Why not have a Taylor made store? I can see it in a strip mall/Outlet mall. Walk in Addidas clothing, shoes, small hitting bay. New clubs, discounted clubs and get custom fit and order through Taylormade.

[dan360]

[quote name='matchavez' timestamp='1392653710' post='8686397']
The future of golf will look like a suit shop. We have these you can try on... you can buy them and take them, or you can have them tailored.

I'm waiting for a big box store to start doing a unified type of fitting... think Ping factory fitting, but with any club. That won't require as much square footage. However, for it to work, you're going to need techs that know what they're doing, and companies willing to do it for "free", or nearly free.

Imagine those stats you get from your fitting are waiting for you on a profile in a web store. Once that profile is there, you can get custom any brand and the store takes care of the brand-to-brand customising.
[/quote]

Pro Golf Discount and Puetz Golf up here in the northwest sort of do that. They have most--not all--but *most*, of the big name fitting carts on hand in the store. They save your info in the computer and can print out your specs and such. IIRC they charge a $15 "fitting fee" that is refundable when you buy a "fit" club.

[SatelliteGuy]

[quote name='BrianL99' timestamp='1392653277' post='8686357']
Tom Wishon & I are talking about that exact subject on PM. Tom obviously has some insight that he might share.

As for my always less than humble opinion:

The TaylorMade business model is not sustainable in a shrinking sport. Look for TaylorMade to change their business model in the next 5 years.

Dick's is the Big Box model for the next 10 years. Full service sporting goods.

Look for Golfsmith to diversify into other sports.

I think there will be room for the boutique OEM's like Scratch, if they play it smart.

Green Grass shops will become primarily soft good retailers.

Hopkins Wedge is a sensational business model, watch for copycats.

Just my opinions, your mileage may vary.
[/quote]

I was going to use DSG as the example as well, I disagree with Boutique unless they adjust their prices.... Close to 2,000 for a set of irons isn't going to draw business.... At least not enough IMO for long term sustainability... People buy one set and end of story... Club Ho's buy a lot of irons... But rarely multiple sets of the same Boutique irons... Just a trend from what I've seen...

I have a rather negative opinion about Hopkins... I think telling people your getting a Tour Van experience with UPS assembling clubs is not just sneaky... But a bold-faced lie. There is nothing Tour Authentic about assembly lines. Other than that... I hear the wedges perform superbly...

I don't think GG will be gone anytime soon with DSG as the parent company... They may close a store or two... But I see them lasting longer than the others.

I think several of the OEM's are going in the wrong direction... Price increases during a down economy is the wrong business model...

Just look at the opinions starting to float around here about the BBA...

$500.00.... And I'm quoting here... " but it looks, sounds, and feels SOOO cheap... "

[square]

That is my expectation as well. At least within large population areas, golf equipment brands may open boutiques where all of their brand(s), and only their brand , is displayed.
Consumers may buy directly from the brand, eliminating the middleman.
In less populated areas i expect the major brands could work closer with golf course pro shops, for example proving the shops demo samples, and support the shop with demo days where the brand's rep is on site and available to help sell product.

[quote name='chrisntab' timestamp='1392653922' post='8686429']
I say we see each manufacturer cut out the middle man. Why not have a Taylor made store? I can see it in a strip mall/Outlet mall. Walk in Addidas clothing, shoes, small hitting bay. New clubs, discounted clubs and get custom fit and order through Taylormade.
[/quote]

[3fiddyz]

We all live in a world where we want it now but we want it at online prices (ie cheap!) The thing with golf is that you need to try stuff and hitting in a net isnt as good as hitting out in the air off grass.

Personal preference would be to go to a range or proshop that has a good selection ie one of each of everything. Try them out then if you like it order it online and it gets delivered at your home within a few days. Apart from balls / tees and gloves its rare for me to turn up somewhere and realise that I have forgotten my clubs or driver!

Every golf retailer knows that a huge % of its footfall comes in, trys something and then leaves to buy on ebay or online. They obviously try to counteract this by offering to price match and offer that personal service. I would prefere to go into a retailer that has a huge stock of demo kit with more nets or bays to try stuff rather than seeing it packed with '00's of the same driver.

I know that oncourse proshops have suffered from this as they need to outlay so much on stock they dont think they can sell as they are challanged by volume retailers and etailers. I have been to a few courses where the pro shop has closed and there is just a sign that says "go to direct golf and put in this code for a 10% saving"... If Direct Golf (it has large stores and an etail offering) or the other big box golf retailers put in a range of demo kit into clubs, prices were based on online prices, ordering was done online and kit shipped to the customers address then this may be an interesting model.

My club proshop is just going to one club manufacturer, callaway, and dropping Nike and TMAG.. This has loads to do with the stock they need to keep that they just sell at cost at the end of the season....

[smigin]

I believe that most folk shop with their eyes initially rather than by a brand albeit they have their preferred one in their mind. To this end choice is everything so how would comparisons take place in 'Boutique' stores that are sole brand traders? Wasn’t this was the main reason the BBS came about... everything under one roof? But even these must be feeling the pinch with their overheads escalating beyond the benefit they get for ‘bulk’ buying (and all the inherent risk of bulk buying a poor seller)

However more and more folk are visiting the BBS and then buying online. We are finding that more and more pro-shops are joining a purchasing Group with an online shop that can offer them the variety they need without them committing to purchase and thus the shop holds far wider range of clubs than would normally be expected with the facility to substitute a set for another or send back the non selected ones and still remain competitive.

This I see as a mutually beneficial model and more and more pro-shops joining in these groups to offer the wide range their customers demand and being able to provide a fitting service that is their USP.

Just my thoughts

[square]

From a brand's perspective, the advantage of a boutique is that it allows the company to showcase all their products. Third party retailers tend to cherry pick what they want from brand X, then buy another merchandise category from brand Y, another merchandise category from brand Z etc... Meanwhile, the brand is designing and producing merchandise in all categories, and it is frustrating when retail buyers don't buy the entire line. Boutique shops would display and sell the entire product line, for example a Ping boutique would have drivers, irons, wedges, putters bags,, but also Ping gloves, Ping pants, Ping shirts, Ping outerwear,, Ping head wear. The store color and layout would promote the image Ping wants to cultivate.

[quote name='smigin' timestamp='1392657041' post='8686759']
I believe that most folk shop with their eyes initially rather than by a brand albeit they have their preferred one in their mind. To this end choice is everything so how would comparisons take place in 'Boutique' stores that are sole brand traders? Wasn’t this was the main reason the BBS came about... everything under one roof? But even these must be feeling the pinch with their overheads escalating beyond the benefit they get for ‘bulk’ buying (and all the inherent risk of bulk buying a poor seller)

However more and more folk are visiting the BBS and then buying online. We are finding that more and more pro-shops are joining a purchasing Group with an online shop that can offer them the variety they need without them committing to purchase and thus the shop holds far wider range of clubs than would normally be expected with the facility to substitute a set for another or send back the non selected ones and still remain competitive.

This I see as a mutually beneficial model and more and more pro-shops joining in these groups to offer the wide range their customers demand and being able to provide a fitting service that is their USP.

Just my thoughts
[/quote]

[Jeckert07]

Not a chance, big box continues to dominate retail and expand into more markets. It's an unfortunate trend because a lot of great independent retailers have had to close up shop due to the inability to compete with big box prices and exposure.

[Noyes26]

Got news for ya.... its not just golf.

A lot of us are waiting for the day that small business can strive again. Overhead is a killer and makes it harder and harder to compete when our country is so in love with the Walmart business plan. "If it does not say sale, I'm not buying!"

I'm in retail, not golf, every day I hear something new that makes me laugh later that night. It's a small business and god forbid we make any money to pay the bills, the employees, oh and pay for inventory so that when you need it.....we have it.

[BlkNGld]

[quote name='square' timestamp='1392650866' post='8686069']
#1 big square footage stores have closed and will continue to do so, before long there will be no remaining large square footage golf equipment stores.
#2 major brands such as Titleist, Ping, TM, Callaway wil increase their mobile van/bus fleet to do more on course and driving range 'demo days'
#3 with no more retailer storefronts to "protect', Titleist, Ping, TM etc.... will sell directly to consumers

Agree, disagree ?
[/quote]

I'll go out on a limb and venture that you live in Edwin Watts territory? Here in Silicon Valley we've had a PGA SS open and GS fully remodeled in the last year (although the opening surely drove the remodel).

That said I disagree for a number of reasons.

First, with drivers having more and more adjustability and more shaft options available having a fitting service quickly becomes the way to combat internet sales and the bay.

I am seeing the exact opposite of OEMs increasing their demo days. Aside from the huge Morton Golf shows, rather than on course demo days I'm seeing more "in store demo days" where store staff can assist rather than have one or two reps.

[Anser]

[quote name='BrianL99' timestamp='1392653277' post='8686357']
Tom Wishon & I are talking about that exact subject on PM. Tom obviously has some insight that he might share.

As for my always less than humble opinion:

The TaylorMade business model is not sustainable in a shrinking sport. Look for TaylorMade to change their business model in the next 5 years.

Dick's is the Big Box model for the next 10 years. Full service sporting goods.

Look for Golfsmith to diversify into other sports.

I think there will be room for the boutique OEM's like Scratch, if they play it smart.

Green Grass shops will become primarily soft good retailers.

Hopkins Wedge is a sensational business model, watch for copycats.

Just my opinions, your mileage may vary.
[/quote]

The 8 people who bought Hopkins Wedges all agree

[BlkNGld]

[quote name='chrisntab' timestamp='1392653922' post='8686429']
I say we see each manufacturer cut out the middle man. Why not have a Taylor made store? I can see it in a strip mall/Outlet mall. Walk in Addidas clothing, shoes, small hitting bay. New clubs, discounted clubs and get custom fit and order through Taylormade.
[/quote]

You have something like this already with Callaway and TM having special fitting centers but having them everywhere isn't practical.

To do it on a widespread basis means that means each OEM would have to open a store with rent in multiple locations, staff up, stock with inventory. Huge amount of overhead and investment in what is a flat market.

Apple can do it because everyone "needs" a smartphone.

But before you'd see this with golf gear, you'd see some of the big boys like Nike and Adidas run their own stores with clothing and shoes before golf equipment. And aside from outlet malls, you don't see that very much.

[johnnythunders]

First of all, the major OEMS are selling direct, how much? Not sure. Great business model for profit margin, not for volume. Yet.

There will always need to be Dicks type store for the average joe to go into the store and buy off the rack stuff.

What is needed is "Qualified" fitters or places that have all the clubs to hit.

I see a small store with extensive demo carts, knowledgable fitters and no inventory.

You find what you want, they give you a link and you get a % off your order, order goes directly to OEM and then they ship to you. The fitters get % from the manufacturer for what they sell. For the people that don't need fitting or want it, they just order direct like today. Oems could run all kinds of specials to move product.

Good bye Big Box stores and the return of the small golf shop, small course golf pro shop. All custom Baby, all the time.

Would also kill ebay. YEAH!

[dcr147]

[quote name='3fiddyz' timestamp='1392655177' post='8686567']
We all live in a world where we want it now but we want it at online prices (ie cheap!) The thing with golf is that you need to try stuff and hitting in a net isnt as good as hitting out in the air off grass.

Personal preference would be to go to a range or proshop that has a good selection ie one of each of everything. Try them out then if you like it order it online and it gets delivered at your home within a few days. Apart from balls / tees and gloves its rare for me to turn up somewhere and realise that I have forgotten my clubs or driver!

Every golf retailer knows that a huge % of its footfall comes in, trys something and then leaves to buy on ebay or online. They obviously try to counteract this by offering to price match and offer that personal service. I would prefere to go into a retailer that has a huge stock of demo kit with more nets or bays to try stuff rather than seeing it packed with '00's of the same driver.

I know that oncourse proshops have suffered from this as they need to outlay so much on stock they dont think they can sell as they are challanged by volume retailers and etailers. I have been to a few courses where the pro shop has closed and there is just a sign that says "go to direct golf and put in this code for a 10% saving"... If Direct Golf (it has large stores and an etail offering) or the other big box golf retailers put in a range of demo kit into clubs, prices were based on online prices, ordering was done online and kit shipped to the customers address then this may be an interesting model.

My club proshop is just going to one club manufacturer, callaway, and dropping Nike and TMAG.. This has loads to do with the stock they need to keep that they just sell at cost at the end of the season....
[/quote]That's a great point. Many of us have to decide not only on who to carry, but which product will sell and how much of it. Many professionals have their allegiances and relationships with vendors that wont change. But I think we might not be far off from becoming soft goods retailers that stock only putters, wedges and only demo drivers-fairways- hybrids and irons. You can't make a living selling everything at cost+. This is a reason why the traditional professional's job is a thing of the past.

[enduro]

Stand alone retail golf stores have pretty much disappeared in Canada, Golftown is the only one left.

Despite the monopoly, I can't see how the Golftown retail model is even sustainable. The stores are massive and mostly empty 6 months of the year. The heating and maintenance costs alone must be huge.

[SammyShaf]

I work in a BBS and to me the idea of boutique retail is comical at best. When I was in college, I worked at a menswear store that sold top of the line goods, on par with Nordstroms, and watched as the owner promptly closed the doors prior to the housing bubble in 2008. The BBS works simply because people who are not on the WRX level of tinkering, want to compare and contrast the latest and greatest among the vendors and find out what works best for them. On any given day I will have folks walk up to me and say that they haven't bought clubs in many years and they are floored by the results they get with swing suggestions and joining the 21st century when it comes to clubs. Boutique golf stores would not work simply because they would not be able to do the volume of sales to the average golfer in order to keep the doors open. I believe that BBS depends on the deal seeking consumer looking for consumables (balls, tees, grips) and apparel sales to drive daily sales to stay afloat. The biggest problem I face on a daily basis is a fundamental difference in what the consumer is actually looking for. On a monitor, they are more impressed with the one snap hook that is 20 yards further than their average drive as opposed to the consistent playable miss that other clubs give them.

In my version of a perfect world, golfers would buy equipment that best suits their ability to score as low as possible. Unfortunately, I live in a world dictated by the pop a million pills to enable me to smoke, drink, guzzle 2 liter sodas, and expect 300 yard drives with a slap cut swing at 74 mph.

[square]

What's comical about the boutique concept ? Allen Edmonds is a mid to high priced men's footwear company. For about a hundred years AE sold its shoes through department stores, men's shoe stores, a few mom and pop family shoe stores etc.... Mostly these stores bought the AE brand men's dress shoes, because that category was AE's forte. But Allen Edmonds wanted to be known as more than a dress shoe brand. So in recent years AE has rolled out boutique stores across the nation. At these stores customers can find AE brand dress shoes, casual shoes, belts, ties, outerwear, pants, sport coats, luggage etc.... A consumer gets to view and try on all these different categories of AE brand products.
IF AE had not opened boutique stores the company would still be stuck selling only dress shoes to department stores. In other words, since no third party retailer would carry all of AE's product categories, AE decided to open their own boutiques. Several clothing, footwear, jewelry etc... brands have opened boutiques, which allows them to broaden their merchandise categories and control the distribution of their brand.
Golf equipment brands might do the same thing. A Titelist boutique store could display and sell all things Titleist-Footjoy, really making an impressive presentation which helps the quality image of the brand.

[quote name='SammyShaf' timestamp='1392678678' post='8689127']
I work in a BBS and to me the idea of boutique retail is comical at best.
[/quote]

[hef63303]

Golf clubs will eventually be sold primarily over the internet. Golf course shops will provide the "showroom" for most golfers and the manufacturers will provide demos and inventory for people to see their golf clubs where golf is played. As much as we would all like to think that people want to be fit for golf clubs, the majority of them are still sold standard off the rack and this will not change. Sales at eBay and over the internet continue to climb every year and sales at retail locations continues to fall every year. I don't see this changing, unfortunately.