Outdoor Industry Tops $33 Billion

A SportsOneSource Trade Publication
January 2006
OIA Expands Training;
Adds Outdoor University
Outdoor Industry Tops $33 Billion
Outdoor Industry Association has completed a deal to incorporate Outdoor University into its portfolio of educational
events. Outdoor University is a Midwestbased experiential outdoor training event
designed to improve the product and
selling skills of outdoor industry retail
sales associates. Integrating Outdoor
University under the OIA umbrella provides the opportunity to expand specialized retail training experiences to a wider
audience and is in-line with OIA’s goal of
ensuring the growth and success of the
outdoor industry.
Each year, OIA compiles data from dozens of sources, both inside and outside of the
outdoor market and creates a comprehensive report outlining the State of the Industry. OIA will present this report to the industry during their bi-annual industry breakfast year at Outdoor Retailer Winter Market. Over the past few years, this breakfast,
which takes place on the first morning of the show, has quickly become a must-attend
event. OIA presents vital research and top-quality guest speakers to all participants.
Specialty Market RETAILER obtained an advance copy of the document to review and
found some clear trends that could make the most conservative pessimist see hope.
But these opportunities are also coupled with trends that, if left unchecked, could
evolve into industry-wide roadblocks.
SMR spoke with OIA’s president, Frank
Hugelmeyer, who said that this acquisition will help the entire industry create
the next generation of leaders. “Many of
the VP’s and CEO’s in the industry today
got their start working as salespeople in
their local outdoor shops,” he said. “This
allows people who are future leaders of
the outdoor industry to develop the skills
they will need, and it introduces people
at the retail level to OIA and shows them
what we can offer.”
As part of the deal, OIA has contracted
Ken Barmore to manage and expand the
programs to the northeast and southeast
in 2006 and to develop an action plan on
how to expand the concept nationally.
The program not only offers any retailer
valuable product training and skills clinics, but it also helps consolidate and
reduce training costs. The two-day,
camp-based programs serve several retailers at one time and integrate product
testing with selling, training, and merchandising clinics.
According to OIA estimates coupled with hard data from various research firms, including SportScanINFO and The Leisure Trends Group, the outdoor industry is a
$33.3 billion market with
outdoor specialty retailers
accounting
for
roughly $2.2 billion in
sales per year and Outdoor specialty Internet
and catalog sales accounting for an additional $2.1 billion. This
increase in the size of the
industry is, in part due to
a broader definition of
the
outdoor
industry
itself.
OIA has created a new
vision for the outdoor
industry that includes virtually all human-powered outdoor recreation. This new definition requires a shift in thinking for some retailers and manufacturers and may include activities that were once segmented under action sports, bicycling, snow sports,
fly-fishing, and running. While the culture portrayed at a specialty running retailer
may not mesh with the culture of a surf and skate shop, many of the core values are
the same – clean air, access to recreation areas, and always push yourself to the next
level of your sport.
In the same manner, many of the issues these different markets deal with are universal. Public greenways give cyclists, runners, skaters, hikers, and bird watchers an
urban playground. (Continued on Page 4...)
INSIDE SMR: •
•
•
Heavy Profits from Lightweight
Merchandising
Retailer Focus: Midwest Mountaineering
Gear Preview: Technical Apparel,
Technical Footwear, and Ski Packs
From The PUBLISHER
We’re Gonna Need a
Bigger Tent...
Just when you thought the expansion of the Salt
Palace would address the needs of the Outdoor
Retailer markets, someone goes ahead and redefines what outdoor retail means. Ask Joe Consumer on the street and he might tell you Cabela’s is an outdoor retailer. Another may point
to a more narrowly defined point of view that
would only include a specialty shop in downtown
Bozeman. Ask a consumer where they last purchased outdoor gear and you will get a range of
answers from that specialty shop or REI to Dick’s Sporting Goods,
Bass Pro, Kohl’s, Costco, Canadian Tire or an Internet site. While
many in the industry have spent the last 25 years believing the outdoor industry can fit snugly inside the confines of the Reno Convention
Center or the Salt Palace, we must now acknowledge that our little
world just barely scratches the surface of the total outdoor business.
As we enter our third year of publishing (after more than two decades
in the retail and brand business) we have to take stock of this market
and redefine for ourselves what we mean by outdoor specialty. To us,
it’s a much more inclusive definition of the space, a definition that includes mountain biking, running (trail and road), surfing, skiing, flyfishing, and yes, even hunting. While we may balk at what some of
these activities represent to us personally, we must also realize that
their participants and the companies that serve them are often advocates for the same or very similar issues when it comes to limiting urban sprawl, preserving natural resources, protecting the environment,
or lobbying Congress for funding to help ensure the next generation
doesn’t think that an American Eagle is just a place to buy clothes.
The broader definition is also driven by our survival instincts as business professionals. If the consumers mentioned above don’t think that
outdoor retail is all that special, then how do we sell more to those
consumers that are passionate about their own outdoor pursuits; that
and do see the importance of product quality and a well-trained store
clerk; and aren’t always looking for the next big sale.
For those of you in the retail business, it often comes down to what
you carry. You probably won’t get that TSA customer shopping in your
store for the same items they carry, but you do have an opportunity to
sell more to your customer that wants to shop in your environment.
Are you selling her running shoes as well as a softshell jacket?
Specialty Market RETAILER is
published by SportsOneSource, the
leading provider of business information in the Sporting Goods industry.
Other SportsOneSource titles include:
The B.O.S.S. Report
Sports Executive Weekly
SnowSports Market Report
Performance Sports RETAILER
Specialty Market UPDATE
Sports Market UPDATE
*****
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Specialty Market RETAILER is protected
under all applicable copyright laws and is
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dba SportsOneSource
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Charlotte y NC y 28269
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704.987.3455 fax
specialty@SportsOneSource.com
Group Publisher
James Hartford
james@SportsOneSource.com
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Specialty Editor
Kris Versteegen
kris@SportsOneSource.com
Associate Editor
Andy Kerrigan
andy@SportsOneSource.com
*****
Complete content of this publication
and other SportsOneSource products
can also be accessed at:
For the vendors, it’s thinking outside the box a bit and looking for
those specialty retailers that have seen their business impacted by the
big-box guys as well. Perhaps your footwear, apparel or accessories
are just the ticket for a running specialty retailer.
www.SportsOneSource.com
While this space is too small for a broader discussion of these opportunities, it will be our mission to continuously probe the market for the
possibilities for you to grow your business. See you in the aisles.
SportsOneSource Publishing at:
For sponsorship or advertising
opportunities, contact
sales@SportsOneSource.com
james
2
Specialty Market RETAILER
JANUARY 2006 • Volume 2, Issue 1
Feature
6 Heavy Profits from Lightweight Merchandising:
Specialty Market RETAILER Takes a Look at the Ultralight
Category and How It Can Help Boost Your Sales...
MarketWatch
8
Technical Apparel:
Warm, Dry, and
Stylish
14 Technical Footwear
16 Ski Packs: Helping
You Go Beyond
Off-Piste
18 Retailer Spotlight:
Midwest
Mountaineering
NewsWire
20
20
Financials
22
Industry News
Industry News
Specialty Market RETAILER
3
...As OIA Addresses Broader Issues
(Continued from Cover…)
Preserving wilderness areas - from undeveloped beaches to deserts to wetlands –
all provide recreation destinations and
help grow the participant base. Clean air,
global warming, endangered species, reef
preservation, the list goes on.
In business, the similarities are even more
prevalent. Quiksilver, Amer Sports, K2
Inc., and even Nike are bringing these
markets together on the vendor side. On
the retail side, stores are becoming larger
and carrying a broader variety of merchandise every day. National chains like
Dick’s Sporting Goods, The Sports Authority, Gander Mountain, REI, and Cabela’s are creating footprints with more
square footage and carrying more categories than ever before. On-line retailers like
Backcountry.com, Zappos.com, and Amazon.com are catering to every type of outdoor athlete from runners to alpinists,
which may well be the same person in
many cases. The same kid who goes surfing at Scripps after school may head to
Joshua Tree on the weekend. The same
family that goes rafting at the New River
Gorge in August may go mountain biking
at Tsali in April.
Without a doubt, one of the main drivers
behind this growth is lifestyle apparel, a
trend that has both its benefits and challenges.
The connection extends beyond issues,
business, and participation. The different
aspects of the new outdoor industry feed
off of each other. When one corner becomes healthy, the others follows suit.
When a person is introduced to the outdoors through mountain biking, he or she
is more likely to take up rock climbing.
When another person takes up white water kayaking, surfing could be next..
The popularity of the outdoor lifestyle is
creating increased consumer awareness,
more media coverage, and a younger customer base. All of these metrics point towards increased growth, at least in the
short to medium term. However, there is
a more foreboding trend underlying this
growth that could stymie any momentum
in the industry. While lifestyle apparel is
on the rise, technical apparel and equipment sales are declining along with participation numbers.
The study also shows that the industry is
growing at a faster rate than the rest of
the economy. According to the U.S. Department of Commerce, U.S. retail sales
on average grew roughly 7.5% in 2004.
Outdoor retail outpaced this number by
one full percentage point during the same
period. This is an impressive improvement
considering that since 2001, the industry
has lagged behind the national average by
as much as four percentage points.
The Outdoor Industry by Channel
(in $ billions)
Outdoor Specialty
Stores
According to OIA, understanding why
some parts of the industry are growing
while others remain stagnant is crucial to
preparing for what could be the industry’s
greatest growth period yet.
$2.2
Outdoor
Internet/Catalog
$2.1
Outdoor Chain
Stores
$3.9
$2.4
Mass Merchant
$4.9
Surf & Skate
$5.5
Bike
$2.4
Ski and Snow
Fly Fishing
Hunting
Fishing
Retailers and manufacturers are now
faced with the challenge of shifting their
target audience to include two distinct
segments, baby boomers and millennials.
The two segments account for the majority of the U.S. market and OIA considers
them both as the greatest opportunity for
long-term growth in outdoor recreation.
$2.3
Dept Store
In 1998, only 60% of all Americans participated in outdoor activities. That number climbed rapidly until 2001, when it
peaked at 67%. Since that time the rate
has been falling and today roughly 64% of
Americans are outdoor recreation participants. While the overall percentage of
participants is shrinking, there are segments of the industry that are showing
considerable growth. Trail running, canoeing, and bouldering are all showing
healthy increases in participation, albeit
off of much lower base numbers.
$0.9
$2.2
$4.5
The report gives an honest account of the
outdoor industry, outlining the opportunities and challenges presented by today’s
market. While the trends currently seem
to be favoring the industry currently, a
declining participation base and slowing
equipment sales certainly are cause for
concern. OIA has taken the first step in
recognizing the challenge and is presenting its findings to the industry to find a
solution.
Source: OIA State of the Industry Report
4
Specialty Market RETAILER
Specialty Market RETAILER
5
Specialty FEATURE
Heavy Profits from
Lightweight Merchandising
By Kris Versteegen
O
try have proven that sales of lightweight
backpacking gear can improve considerably with some simple merchandising
techniques. A few retailers, like ProLite
Mountain Sports in Bozeman, Mont.,
have built their entire business around
the category.
ver the past several years, the
term ‘Fast & Light’ has become
pervasive throughout the outdoor industry, shattering the preconception that lightweight backpacking
and camping is “just a trend.” Today,
Kevin Volz, GoLite’s sales manager, has
nearly every manufacturer is producing
seen the best and worst of what retail
something to address the lightweight
has to offer across the country and has
category. While the market for tradispoken in several clinics designed to
tional backpack gear is
help retailers
still alive and strong,
“It’s important to violate
sell
lightlightweight and ultra
some of the conventional
weight gear.
lightweight gear continVolz
told
axioms when you’re buildues to grow as a subS
p
e
c
i
a
lty
ing a lightweight assortcategory
and
drive
Market
REment, You can’t just put a
sales at retail.
TAILER that
lightweight pack on the
However, there is still a
the
easiest
pack wall.”
large
population
of
way to imretailers who are not
prove sales is
taking full advantage of
Dave Johnson, Granite Gear
to bring sevthe demand for this
eral different
type of gear. While nearly every retailer
lightweight pieces together into a collecin North America stocks a list items
tion and create displays to reinforce the
that could be considered lightweight,
idea.
many are not calling out the category as
Some retailers are also seeing a lot of
something new and different and as a
success with lightweight and ultra
result their customers do not feel the
lightweight packages. Bundling a few
need to replace older heavier gear.
key items, like a tent, sleeping bag and
Several retailers throughout the coun6
pack together and displaying the com-
bined weight is an easy way to get customers thinking about the weight of
their weekend packs. Volz also emphasized that these displays need to be
branded as lightweight gear.
Dave Johnson with Granite Gear has
also seen how proper merchandising
can improve sales in this category, and
he agrees with Volz in many respects.
He said that one of their more successful retailers took his own fully outfitted
pack and kept in on display in the
store. Anytime a customer asked about
lightweight backpacking the employees
knew they could use it as an example of
what can be achieved.
This not only provided a “wow” factor
when customers picked up a sub-10pound pack that offered a weeks worth
of backpacking, but it also helped the
customer understand what is required
to become completely outfitted and all
of the advantages that go along with
that.
“It’s important to violate some of the
conventional axioms when you’re building a lightweight assortment,” said
Johnson. “You can’t just put a lightweight pack on the pack wall with everything else and an alcohol stove next
to the other stoves. Group like items for
Specialty Market RETAILER
the ultra light category together in one
place.”
Part of the reason for the lightweight revolution that took place a few years ago is
the advance in fabric technology. Big
Agnes has been one of the leading lightweight tent manufacturers for several
years and Bill Gamber, Co-owner of the
company, felt that these advances helped
them break some long-standing tent design rules. “Some of the mainstay brands
in the industry have some amazing designers who have been around for 20 year and
tried everything. We came onto the scene
with 30 denier floors and flies and they all
said “it won’t work,” because they had
tried the same material 15 years ago and it
fell apart,” he said. “The thing is, today,
that material is much stronger - similar to
70-denier ten years ago. Now, those same
designers are working with 30-denier.”
This same technology revolution can also
help dispel the myth that all lightweight
gear sacrifices durability. While it is true
that some of the more extreme lightweight
pieces trade durability for less weight,
most manufacturers try to match the durability of heavier gear. Kevin Volz agrees
that today’s fabric technologies are a big
step beyond what was available ten years
ago. “Part of the durability issue is myth
and part is not. When looking for the next
technology to shed weight, mistakes can
be made,” he said. “But a lot of educating
the public about the strength and durability of lightweight gear is related to training
staff.”
Another myth retailers need to overcome is
the misconception that lightweight backpacking is not as safe or comfortable as
with traditional gear. “Lightweight travel is
as much about proper technique as it is
about gear,” said Volz. “It is easy to replace a 5 pound tent with a 2 pound tarptent and maintain the same level of safety.
At the same time your pack will be three
pounds lighter.”
Gamber agrees. “Lightweight is really a
second tier category for us. Number one is
comfort, but if you are carrying less
weight, you are more comfortable, so the
two go hand in hand. There is very lightweight and comfortable gear out there. If
you haven’t backpacked in 20 years, you
will be blown away by what is possible.”
There are hundreds of retailers throughout
the country who do a considerable amount
of business with lightweight gear.
Specialty Market RETAILER
The highest concentrations are in the
Southeast and surrounding the Appalachian Trail, but there are other pockets of
enthusiasts and retailers in Colorado,
Montana, and the Midwest.
Demographically, the category seems to
resonate with several different age-ranges,
from baby boomers to teenagers. Each
person is drawn to the category for different reasons, but generally speaking, older
participants buy lightweight gear because
they are impressed with the technology,
while younger consumers have come to
expect a level of comfort in anything they
do and the category offers that margin.
It is also important to show that ultra light
backpacking is not only an activity for
extreme athletes who push the limits of
what is possible. In every sport there are
those who choose to push the limits, but a
hiker who through-hikes the Colorado
Trail without re-supplying will see the
same benefits of ultra light gear as a hiker
who escapes for a weekend trip three or
four times a year.
Everyone enjoying the backcountry can
benefit from the technology and design
innovation coming out of the lightweight
market. The movement began in the 90’s
and was called a fad but since then it has
turned into a driving force for innovation
in the industry. Communicating the benefits of the gear and the techniques of the
sport effectively can turn the category into
a solid profit center for almost any retailer.
Tips For Selling Lightweight...
• Call out lightweight gear with displays
that are clearly branded as lightweight.
• Create brochures that highlight lightweight merchandise in the store.
• Create lightweight backpacking packages
with clearly market weights.
• Educate your staff and the consumer
about the advantages and disadvantages. Selling a pack with a weight limit
of 20 lbs to someone who regularly carries 40 will not only destroy the pack but
also turn-off the customer to the category and your store.
• Host regular clinics that not only explain
the gear, but also the different techniques involved in lightweight backcountry travel.
7
Specialty TRENDwatch
Technical Apparel:
Warm, Dry, and Stylish
W
hile apparel has been a category that has seen more
evolutionary changes than
revolutionary changes over the past few
years, the industry is taking a significant step ahead this year. Integrating
fashion elements into performanceoriented apparel has been a theme for
several seasons, and as a result, many
brands have been experiencing unprecedented growth as new customers
begin to take notice of outdoor brands
for both fashion and function. This year
these same brands are looking at new
technologies that improve comfort and
performance while at the same time
maintaining the “outdoor fashion” look.
While hybrid technology is not necessarily new it has been refined over the
years to the point where the most recent iteration promises to deliver some
real advantages over past attempts.
Companies like Arc’Teryx, Mountain
Hardwear, and Marmot are all using
various technologies that combine different fabrics and laminates to create a
garment that offers weather-proof,
breathable mobility in nearly any condition. Companies are also continuing to
incorporate insulation into both hard-
8
single baselayer. Marmot’s new Z3
Fleece Sweater also uses three different
weights of insulating knit that are
blended as a single seamless fabric and
Marmot has devised a system, called
strategically placed on the body to offer
the Marmot Mosaic System, which uses
both wicking and extra insulation. Mara strategic mosaic of different woven or
mot’ new Super Hero Jacket completes
knit fabric constructions in a single
the Mosaic system with a windproof,
garment that offers optimized performwater-resistant and breathable soft
ance by placing appropriate fabrics in
shell, using four different fabrics, each
different places on the body. This
providing a different and dissystem is integrated from the base
tinct function in the garment.
layer, through the insulation
The body of the Super
layer and out to the shell. WickHero is windproof and
ing fabrics are placed in perwater resistant Gore
spiration zones, thermal
Windstopper Scuba
fabrics are placed in cold
soft shell fabric. The
zones and wind barrier
shoulders and outfabrics are placed in
side arms are reinfront areas of the body
forced with tough Gore
that need the most wind
Windstopper Tasset fabric.
protection. The net result is a
Underarm vent gussets are
lighter weight, more efficient and
breathable knit and the
more comfortable performance Marmot’s Superhero
removable hood is lightdressing system.
weight and waterproof PreCip Plus fabric.
Marmot’s new Zonal Baselayer Zip top
and bottom are an engineered with
Much of the innovation this year is dethree different weights of DriClime knit,
rived from a new technology from Goreblended seamlessly to provide the moisTex, called Comfort Mapping. The comture transport, low bulk, odor control,
pany says that this new construction
comfort and protective warmth in a
shells and softshells in various ways,
ranging from direct lamination to zipout liners.
Specialty Market RETAILER
technique effectively handles each part of
the body differently, as though the human
body were a map with several different
climatic zones uses different Gore-Tex
laminates in specific areas of the garment
to harmonize with the body's activities
and temperature requirements.
Arc’Teryx is putting the comfort mapping
system to use with its new Scorpion
Jacket and Pant. The Scorpion garments
are designed to not only maintain comfort
during lift-access days but also provide
enough breathability for tracking out
every last line on the hill. With details like
adjustable powder skirts, Speedhoods,
and Recco reflectors, it’s clear that these
new pieces were designed with unrestricted gate access and backcountry skiing in mind.
Eider has also taken advantage of this
new technology with two new models.
Their Latok Jacket features a main body
constructed of Gore-Tex Paclite Tenacity
for lighter weight and breathability while
the shoulders and arms use the more
durable Gore-Tex XCR Chamonix 3 layer.
Eider has designed an attached adjustable hood and side vent pockets to offer
protection and ventilation.
Mountain Hardwear has been leading the
push to develop this hybrid technology
and is using it in several pieces this year.
Their new GTX 2.5 Jacket and Pant combines a 70 denier nylon FTX face fabric
with a Gore-Tex PacLite
laminate. Mountain Hardwear’s proprietary MicroClimate Zoning strategically laminates PimpChimp fleece for
added warmth in
key areas. These
shells, in both
men’s
and
women’s versions,
are designed for
alpinist’s but light
enough
for
any
backcountry enthusiMountain Hardwear’s
asts.
GTX 2.5
Mountain Hardwear has also created a
non-Gore collection that uses face fabric
made of 70 denier taslan with 2.5 layer
Conduit Hybrid which is a cross between
a laminate and a coating. The Descent DT
Jacket and Pant also uses the same MicroClimate Zoning found in the GTX 2.5
in addition to scuff overlays on the sleeves
Specialty Market RETAILER
for durability. The Descent DT jacket is
offered as part of a Trifecta package,
which includes a zip-in TufStretch insulated soft shell with lightweight Thermic
insulation. This can be worn on its
own of with the Descent DT for
maximum protection on those
days when the weather keeps
hitting you with surprises.
Isis has created several pieces
that are putting different
forms of hybrid technology to
use. The Comet Jacket and
Comet Pant are both designed as “light and fast”
pieces, but combine different fabrics to provide protection
Isis’
where it is needed and save weight
where it is not. Both pieces are
wind protective from the front with a polyester shell and brushed polyester lining,
and airy from the back with stretch woven
panels under the arms, behind the legs
and down the back. At the other end of
the spectrum is Isis’ revamped Prima Diva
Jacket, designed for the all-mountain
skier/snowboarder and using Isis’ proprietary hybrid waterproof/breathable
fabrics as well as super light soft shell
fabrics. The Prima Diva utilizes a combination of Isis’ Duet H2O fabric on the
sleeves and front torso and Duet, an 8.9
ounce fabric, on the sides and back. Together these fabrics are designed to create
a defense against cold and fickle weather
conditions while providing lighter weight
and better mobility.
Insulation
New innovations in softshell material from
Schoeller, insulation from Primaloft, and
fleece from Polartec have been driving new
trends in insulation. While puffy down
jackets still provide amazing compressability and warmth-to-weight ratios, lower
profile silhouettes and sleeker cuts are
becoming more popular both in
town and in the backcountry.
Cloudveil’s Spacewalk Jacket
was designed to create its
own category as a hooded
insulated soft shell that
combines
warmth,
weather resistance and
breathability. Schoeller Dynamic fabric protects 60g of
Primaloft insulation, with interior stretch panels for maximum
mobility.
Isis’ new Whisper Jacket provides lightweight warmth with high quality 650-fill
goose down and super light downproof
mini-ripstop nylon outer with
DWR finish. This slim-fitting
quilted hip length jacket has
microfleece-lined hand pockets; velvet-lined collar, inner
security pocket, elastic cuff
and drawcord hem and
mini stuff sack. The Pandora Jacket incorporates
Isis’ new iS3 Insulation System for stretch performance
and warmth. The iS3 Insulation is 100% stretch from the
Pandora
inner lining to the outer shell,
combining
outstanding
cold
weather protection with comfortable
stretch performance. A lightweight stretch
polyester lining is bonded to Polarguard®
Delta, stretch continuous filament insulation for unrestricted movement in any
outdoor activity. The Pandora features
velvet-lined collar, articulated elbows,
inner stretch storage pocket in the curve
of the waist, inner zip pocket with mesh
window pocket and earphone portal, microfleece-lined pockets and adjustable
cuff and hem. Jacket colors include Lobster, Citron and Wave.
Sierra Designs created the new DriZone
Cold Fusion line for Fall/Winter 06-07,
which incorporates the PrimaLoft One
synthetic insulation to create a low bulk,
lightweight and extremely soft and compressible garment that stuffs into its own
interior zippered pockets. With three
items in the men’s line, the Chockstone
Jacket, Tindal Jacket and Torio Vest and
two women’s pieces, the Kristel Jacket
and Kate Vest, these pieces are designed
to be versatile, simple and functional.
Mountain Hardwear created the Offwidth
Primaloft Jacket to compliment their existing of insulated tops. The
Offwidth
Primaloft
Jacket
uses an air permeable soft
shell made with MTH’s
proprietary
TufStretch
and insulated with PrimaLoft One. Designed for
climbing and cold weather
activities this jacket performs as well as it looks
with just a hint of metro
styling. (Continued on 10...)
Cloudveil’s Spacewalk
9
Merino Continues
Mid-layer Popularity
(Continued from 9…)
Specialty TRENDwatch
Consumers are warming up to merino wool in nearly any form imaginable. The technical benefits of the
material were first realized by the
outdoor industry when Jeremy
Moon launched Icebreaker in
New Zealand, but it quickly
spread to the U.S. with
SmartWool’s socks and then
their apparel.
10
Mayfair combine street styling with
the natural performance benefits of
merino - breathability, moisture
transfer, and low-bulk warmth.
SmartWool is also ramping
up their apparel offering
using Merino wool with a
large addition to their
VersaWear
collection.
The most notable addition is SmartWool’s
new Synergy line, which
While SmartWool and Iceincludes
men’s
and
breaker are leading the market
women’s Jackets, pants
in merino base-layers, today,
Smartwool’s
and
pullovers.
All
Ibex is pushing the boundaries Synergy Pullover
pieces use a proprietary
of what merino can do with innodouble knit fabric to create a
vative designs using the natural
breathable, wind resistant Smartmaterial for nearly everything, inWool. The Synergy knit blends
cluding outerwear. The company
SmartWool, Nylon and Polyester for
has been making its proprietary
a closed knit fabric that sheds moisClimawool softshell fabric for several
ture on the outside, while absorbing
years and it turns out that the same
and then evaporating it from the
properties that allow this material to
inside. Most SmartWool Synergy
wick moisture and retain warmth
pieces feature bonded stretch woven
can help it create a durable, high
pockets some adding technical stylperformance waterproofing and utility.
breathable shell. This
year the company is
Patagonia, has also entered into the
introducing the Chiru
Merino baselayer market this year.
Jacket, featuring adThree years in the making, Patagojustable
hem
&
nia’s new Merino wool baselayers
sleeve
openings,
reflect important advances in
core venting hand
design, innovation and environwarmer
pockets,
mental homework. Available in
internal
mesh
three weights in Fall 2006, Patastash and zipgonia’s wool is 100% chlorine
pered
ipod–
free and made from ultra-fine
Ibex’ Chiru
friendly pocket with
merino purchased from three farms
buttonhole for headphones, double
in New Zealand.
Patagonia’s
weave- Cordura nylon & Lycra exteunique, slow washing process elimirior 100% wool interior.
nates both harmful chlorine and
Icebreaker is also looking at Merino
as a shell material and has introduced its new Coastal line for FallWinter 2006-07. Coastal is an entirely new range of windproof merino
outerwear intended for travel and
casual everyday wear. While the
designs are unapologetically nontechnical, merino still offers natural
warmth and performance. The Escape, Jetter (shown page 8), and
need to coat chlorine-treated fibers
with polyurethane. This gives the
company’s Wool baselayers a more
natural feel against the skin, while
maintaining wool’s natural benefits
– quick wicking, natural odor control and warmth retention. With this
introduction, Patagonia becomes the
only company to offer a full line of
chlorine-free Wool baselayers.
See Them at
Cloudveil
Contact: Katie Jackson
Phone: (307) 734-3880 ext. 109
Email: katie@cloudveil.com
Booth: 1301
Eider
Contact: Gene Frederick
Phone: (802) 434-7288
Email: eurosportGF@aol.com
Booth: 3582
Icebreaker
Contact: Seth Dennis
Phone: (208) 726-1000
Email: seth.dennis@icebreaker.com
Booth: 3565
Isis
Contact: Kristen Toy
Phone: (802) 862-3351 ext. 111
Email: kristen@isisforwomen.com
Booth: 3234/3234a
Marmot
Contact: Karen Smith
Phone: (707) 544-4590
Email: ksmith@marmot.com
Booth: 3507/MR253B
Mountain Hardwear
Contact: Brad Bates
Phone: (510) 558-3000
Booth: 3641
Patagonia
Contact: John Collins
Phone: (805) 667-4576
Booth: 927
SmartWool
Contact: Regan Spindler
Phone: (970) 879-2913
Email: regan@smartwool.com
Booth: 3327
Specialty Market RETAILER
Specialty Market RETAILER
11
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Schedule of EVENTS
Fri., Jan. 27
7AM
Mountain Hardwear BBC Breakfast
Transportation from the front entrance
tower of the Salt Palace located at 100
South West Temple at 7:00 AM.
MEDIA ONLY
Silverfork Lodge/Big Cottonwood Canyon
9AM -- 4PM
3rd Annual Backcountry Base Camp
All attendees must stop at the Salt Palace
for registration before
going to the BBC
Brighton Ski Resort/Big Cottonwood Cyn
All Day
Ski Like a Girl @ BBC with the OIWC
ackcountry Betty clinics. Choose a clinic
and learn from the
best female athletes! Co-Sponsored by
GoLite.
Brighton Ski Resort/
5PM
4PM -- 5PM
Shock Doctor Booth Party
Join Shock Doctor at their trailer and
wind down after a hard day in the office,
grab a beer, and enjoy some snacks.
SD Trailer, Ballroom Booth 5346
4PM -- 5PM
Torino Pep Rally Wine Tasting Gala
Do you get excited every four years by
the “Thrill of victory and the agony of
defeat”? If so, please join Highgear as
we celebrate our sponsorship of double
world champion medalist alpine skier
Julia Mancuso and the US Ski & Snowboard teams.
Highgear Booth 1605
6PM -- 8PM
Outdoor Retailer Industry Party
Join us for a night of networking, friends
and fun at Salt Lake City’s newest and
most exciting venue – The Depot. Located directly beside the Grand Hall
(host to the last two Winter Market Industry Parties) The Depot features a fine
dining restaurant, 2-tiered music venue
and state-of-the-art sound, lighting and
staging. Sure to be plenty of free beer,
appetizers, tunes and good times to go
around. Join us!
The Depot, 13 North 400 West, SLC
Backcountry Base Camp Bash cosponsored by GoLite
Raffle at 5PM for award-winning GoLite
packs!
The Alpine Rose
Sat., Jan. 28
7AM -- 9AM
Noon -- 1PM
12
Sat., Jan. 28
OIA Industry Breakfast
Join Outdoor Industry Association as we
host a complimentary breakfast, the return of the Industry Awards, and a keynote presentation on the topic of corporate social responsibility.
Downtown Marriott Salons A-E
Seminar: Double, Triple or Quadruple
Sales with Internal Mktg Strategies
Speaker: Daniel Feldsted, The Image
Foundry
Downtown Marriott Salon E
Noon -- 1PM
The Outdoor Recreation Participant
Speaker: Michelle Barnes, OIF
LOCATION -- Downtown Marriott Salon D
Noon -- 1PM
OIA Fair Labor Panel
Discussion with Michael Collins, REI
Downtown Marriott Salons A & B
4PM -- 5PM
Celebrating a 100 Years of Achievement with Duofold
Enjoy light refreshments and local beers.
Meet special guest Ted "Cave Dog" Keizer
who set a world hiking record during the
Duofold Hike 50 Challenge this fall.
Duofold Booth 3359
Sun., Jan. 29
7:30A -- 9:30A
The Point of Purchase: Guiding Textile-based Product Sales In-Store
A lively textile supply chain panel discussion about where 70% of purchasing
decisions are made.
Downtown Marriott, Salon E
7:30A -- 9:30A
W.L. Gore & Associates presents:
Pete Goss, author of Close to the Wind,
became the fastest British Sailor to sail
single handed around the world in 126
days 21 hours in the world’s toughest
yacht race, The Vendee Globe non-stop,
single-handed Round the World Race.
Downtown Marriott
Noon -- 1PM
Panel Discussion: Cause Marketing
Panel members:
Sean Patrick / HERA Non Profit
Deanne Buck / Access Fund Non Profit
Tonia Riggs / Stonewear Man.
Peter Metcalf / Black Diamond Man.
Maile Buker / IZZE Beverage Man
Eric Spreng / REI Retail
Kim Walker / Outdoor Divas
Downtown Marriott Salon D
Specialty Market RETAILER
Schedule of EVENTS
Sun., Jan. 29
Sun., Jan. 29
Noon -- 1PM
Seminar: The Power of Cause Related
Marketing
Pollyanna Pixton, Evolutionary Systems
Downtown Marriott Salon D
Noon -- 1PM
Seminar: What Has Your Brand Done
for you Lately? Part I
Greg Bagni, Alien Truth Communications
Downtown Marriott Salons A & B
4PM -- 5PM
Shock Doctor Booth Party
Join Shock Doctor at their trailer and wind
down after a hard day in the office, grab a
beer, and enjoy some snacks.
SD Trailer, Ballroom Booth 5346
8:00PM
Pakistan: A Philanthropic Expedition
by The North Face
Renowned photographer Ace Kvale presents his recent experiences and exclusive
photography from this devastated area.
The Capitol Theatre, 50 West 200 South
9:00PM -- 2:00AM
The World Premiere of Dynasty!
Join Teva Pro, Outside Magazine and VW
on the ride of a lifetime. Stop by Teva
Booth 800 for your free ticket.
The Depot, 13 North 400 West, SLC
Mon., Jan. 30
OIA New Member Happy Hour
OIA would like to invite you to join them for
cold beverages and the opportunity to meet
you! Come by booth 5600 and learn more
about OIA member benefits and how your
trade association is working for you, your
business and the entire industry.
Outdoor Industry Association Booth 5600
7:30AM -- 9:00AM
ASTM Meeting - Sleeping Bag, Tent,
and Backpack Standards
Downtown Marriott Salons G & H
7:30AM -- 9:00AM
Seminar Series: Word-of-Mouth Mktg:
From Measurement to Management
Anthony Schweizer, BzzAgent Inc.
Downtown Marriott Salon D
Torino Pep Rally Wine Tasting Gala
Do you get excited every four years by the
“Thrill of victory and the agony of defeat”?
If so, please join Highgear as we celebrate
our sponsorship of double world champion
medalist alpine skier Julia Mancuso and the
US Ski & Snowboard teams.
Highgear Booth 1605
7:30AM -- 9:00AM
Sports Trends & Influences
Britt Bivens, Promostyl
Trent Office
Downtown Marriott Salon E
7:30AM -- 9:00AM
Town Hall on Sustainability
Scott Leonard, Indigenous Designs
Downtown Marriott Salon E
7:30AM -- 9:00AM
Business to Business Panel Discussion
Progress Report Since ORSM 2005
Downtown Marriott Salons A & B
Noon -- 1PM
White Sierra Chinese New Year Party
Ring in the Year of the Dog at White Sierra's Chinese New Year party! Kick off the
new year with good luck, and join us for
Chinese food, beer and lots of lucky prizes.
White Sierra Booth 2033
Seminar: What Has Your Brand Done
for you Lately? Part II
Greg Bagni, Alien Truth Communications
Downtown Marriott Salons A & B
Noon -- 1PM
Seminar: Proactive…No Pressure Selling… A Lost Art-Form in Retailing
Roger Bowman, The Derosha Group
Downtown Marriott Salon D
5:00PM
Conservation Alliance Reception
KEEN Booth 5324
6:30PM -- 9:30PM
5:00PM
Thorlo/Backpacker Silent Auction
Benefits the American Hiking Society. Bids
accepted 1/28 and 1/29.
Thorlo Booth 601
OIWC Gathering
Enjoy lively conversation and refreshments
at the OIWC Gathering, including a discussion with world-famous adventurers Arlene
Blum and Bernadette McDonald.
Abravenal Hall, 123 West South Temple
4PM -- 6PM
4PM -- 5PM
4:30PM
4:30PM
KCPR Second Bi-annual Cornhole
Tournament
Test your Cornhole expertise and join us for
beer, Cornhole and prizes. It's not what you
think!
Kristin Carpenter PR Booth 5620
6:00PM -- 8:00PM Hooked on the Outdoors Happy Hour
Plan to shake off any tradeshow blues at
the semi-annual Hooked On the Outdoors
Happy Hour party. Open to all registered
OR show attendees. To receive complimentary passes to the Happy Hour, stop by the
Hooked booth.
Downtown Marriott Hotel Ballroom
Specialty Market RETAILER
Tue., Jan. 31
7:30AM -- 9:00AM
Seminar: The End of Advertising as
You Know It
Roy Turner, Board Retailers Association
Downtown Marriott Salon F
13
Specialty TRENDwatch
Technical Footwear:
Standing Tall in Slippery Conditions
Refinements in technical footwear are
addressing consumer concerns about
traction in slippery conditions and the
constant cry for improved comfort and
durability. Unique approaches such as
new sole materials and integrated traction aids are being introduced to ease
the winter enthusiast’s fear of falling on
ice-coated surfaces.
The Lowa Ice Grip
II GTX, originally
developed
by
the Swiss
for
use in villages where there is no salting
or plowing on the roads and sidewalks,
can alleviate those concerns. The sole
of the Ice Grip II has a plastic inset
piece that flips up or down. One side
features small spikes that improve stability and traction when walking on ice.
When not needed, the inset fits flush in
between the lugs. The Ice Grip upper
uses a combination of Nubuck leather,
fabric and a Gore-Tex lining.
Raichle also addresses slippery
winter conditions with the
Snow Extreme XT GTX and
Snow Track XT GTX. The
Snow Track XT GTX is lined
inside with GORE-TEX® Partelana, a very warm fleece to
insulate the feet from the
cold.
A waterproof zipper and
wide rubber rand protects
the boot from mud, snow
and slush. Available in
men’s and women’s versions, the Snow Extreme and Snow
Lowa’s Ice Grip II GTX
14
Track share board-lasted construction
and the Vibram® Snow sole. Created
with a softer rubber compound and
aggressive profile, the sole offers a more
stable platform on slush, ice and wet
snow.
AKU has used input from Italy’s elite
climbing group, Ragni di Lecco (Spiders
of Lecco) to design the AKU Spider GTX.
The lightweight boot offers superior durability,
warmth, comfort and
performance The Spider
name is inspired by the
web-shaped design of
the upper’s protective
layer.
A
Raichle’s Snow Track XT GTX
Specialty Market RETAILER
Gore-Tex bootie and Microfiber upper keeps feet
warm in harsh conditions without overheating on lower altitude
trail ascents. The Spider’s upper is 30 percent
lighter then traditional
leather boots.
foot
stability.
Exclusive
to
the
Dunham’s Rainier Collection, a Vibram
Super Trek Rubber outsole increases
traction on slippery trails.
The Kamik Force is a three-season
boot that can handle snowshoeing
duties on late winter days.
Thinsulate insulation adds
warmth and an OutDry®
Breathable Waterproof
Bootie keeps feet dry. A
compression
molded
EVA midsole provides
Aku’s Spider
cushioning.
AKU’s unique lacing block
system provides a secure
comfortable fit. A special last
guarantees optimum weight
distribution and the upper cuff
is designed to articulate and
follow leg and ankle movements on
tough traverse conditions.
A built in “rocker” improves
the
walking
stride when not using
crampons.
Dunham
will
form a l l y
launch the RainKamik’s Force
ier
Collection
of
athletic shoeinspired mid and low cut trail
shoes at the 2006 Outdoor
Retailer Winter Market. In
1982, New Balance collaborated with legendary
mountaineer
Lou
Whitaker to create a line
of
hiking
boots.
Whitaker describes the
Dunham Rainier Collection as “the comfort and
breathability of an athletic shoe upper with the traction of
a Vibram outsole.” The Fre- Garmont’s
mont Mid features ABZORB
pads in the heel and forefront from
provide shock absorption and underfoot cushioning. The abrasion resistant
synthetic heel panel
offers
rear
Dunham’s Fremont Mid
Specialty Market RETAILER
The Syncro Plus GTX is Garmont’s
most popular hiking boot. Suitable for
rugged day hikes to light load multi-day
backpacking trips. Gore-Tex and top
grain leather protect the boot in foul
weather. A durable toe bumper products feet from frequent collisions on
rocky strewn trails. The Vibram Ground
Control sole features directional lugs
appropriate to each section of the foot.
Icebug winter boots offer a different
approach to traction control. The
BUGrip 2.0 technology uses a
combination of rubber and steel
studs make contact with the
ground.
Since poor footing can cause
slips from two directional
axis, carbide tip studs
are configured in
traction traction triplets® for
m u l t i directional
grip in the
Syncro Plus GTX iciest conditions. The
durable carbide tip
studs are attached in a stainless steel
crown, which is entirely secured inside
the rubber sole offering a durable,
snow-tire like platform for winter running and hiking.
On ice and snow, the studs extend outside the level of the rubber cleats and
increase stability. On harder surfaces,
the studs are pushed inward to
match the level of the rubber
cleats. This offers versatility for the mixed
rocky and icy conditions prevalent in winter backcountry hiking
and trail-running.
See Them at
Aku
Contact: Joe Guglielmetti
Phone: (207) 799-0273
Email: akuusa@maine.rr.com
Booth: 1711
Dunham Bootmakers
Contact: Ross Evans
Phone: (617) 779-7627
Email: ross.evans@newbalance.com
Booth: 3821
Garmont
Contact: Gord Bailey
Phone: (802) 658-8426
Email: gb@garmontusa.com
Booth: 2927
Kamik
Contact: Margaret Salter
Phone: (514) 341-3950
Booth: 2327
Lowa Boots
Contact: Peter Sachs
Phone: (203) 235-0116
Email: peter@lowa.net
Booth: 2821
Raichle (Mammut)
Contact: Jeff Cunningham
Phone: (800) 451-5127
Booth: 613
Vibram USA
Contact: Lawrence Anastasi
Phone: (978) 318-0000 ext. 204
Booth: 3797
15
Specialty TRENDwatch
Ski Packs: Helping You Go
Beyond Off-Piste
I
nterest in backcountry skiing continues to grow. As many parts of
the country experience questionable
snow conditions close to home, news
reports of deep snowpacks and fresh
powder draw skiers to backcountry
adventures. To address the market,
manufacturers are refining existing
packs and introducing new models with
backcountry specific feature lists.
At the Outdoor Retailer Winter Market,
Gregory Mountain Products will introduce the first ski- and snowboardspecific
backpack that
links
t h e
weight of the skis or board to the pack’s
suspension system .
The Targhee’s ski-carrying
system uses two stays
to distribute the
weight of the skis or
board to the pack’s
framesheet
and
waistbelt and carries
skis vertically or diagonally on the back
of the pack. Skis are
secured with non-slip
lockable attachment
points. The Targhee
can also carry skis
in a traditional Aframe style. The
straps of the carrying
system can be tucked away builtin storage pockets.
The 33-liter Targhee also offers other
backcountry specific features like side
pockets, avalanche shovel handles, and
a quick access pocket for the shovel
blade. Access to the main compartment
is through a panel-loading system. Additional pockets and internal zippered
storage compartments keep small items
organized.
16
Gregory’s Targhee
Gregory will also introduce the Drift, a
20-liter winter pack designed for
skiers who ski backcountry
terrain close to resort lifts.
Specific storage compartments are used for a shovel,
probe and climbing skins.
No doubt, skiers want to
spend more time skiing than
fiddling with gear. The
Granite Gear Q2 certainly
takes care of that concern.
The Q2 resembles a medieval archers quiver.
You don’t need to
take the pack off to
get at your skis.
Ski tails are dropped
into a side holster
and then drawn in
Granite Gear’s Q2
the “Ski-channel” and
secured with a small carabiner to the dring on the right shoulder strap. The
side holster retracts into it’s own compartment when not in use. The rigging
is fast, easy and holds the skis securely
in place.
The main compartment features internal sleeves for shovel handles, probes
or a snow saw. Shovel blades fit into
Specialty Market RETAILER
the bottom of the pack. Large outer
pockets with mesh internal pockets
gives quick access to goggles, climbing
skins or an extra layer.
The small details on the Arc’teryx M20
pack reveals it’s backcountry specialization. The RollTop closure gives quick
and easy access to gear and external
compression straps keep the load tight
and a Y-Frame suspension keeps everything under control. Thermoformed
panels are featured on the back, shoulder straps and interchangeable hipbelt.
The Wrap carrying system keeps a tight
hold on a snowboard or skis. Ice loops,
hydration pocket, integrated shovel
pocket, waterproof zippers and a quick
release pole clip complete the backcountry
oriented
feature list.
Arc’Teryx’ M20
Mountainsmith thinks even the most
dedicated skier needs to take a break
once in a while.
The Mountainsmith OffPiste 25 features a
specially designed
fold-down seat pad.
Flip it down for a
quick lunch or beverage break.
The
Off- Piste 25 also
offers diagonal and
A-frame ski carries,
vertical and horizontal snowboard
carries,
shovel
shaft/bl ade/
probe sleeves,
digital
camera
waistbelt pockets
and ice tool loops. The main
Specialty Market RETAILER
compartment
has two mesh
pockets
and
an
internal
hydration
reservoir
pocket.
With
the
assi stan ce
of
profess i o n a l
backcountry skiers,
Osprey has
completely
redesigned the
Switch Pack series.
See Them at
Arc’Teryx
Contact: Tammy Norberg
Phone: (604) 451-7755
Email: tammy.norberg@arcteryx.com
Booth: 627
Backcountry Access
Osprey’s Switch 26
The Switch 36 and 16 models feature a
hatchback style lid opening with separate wet and dry compartments. Snow
safety gear can be organized for quick
access. The Switch 26 uses back panel
entry for access to the main compartment. Hydration tubes are routed
through insulated shoulder straps.
The DAKINE Heli Pack is a streamlined
touring pack. Despite the Heli moniker,
the pack works well on earthbound
chair lifts. Backcountry oriented feature list includes a diagonal ski carry,
vertical snowboard carry, a quickaccess shovel blade pocket, and zippered tool pocket. The Heli is hydration
compatible and offers just enough room
for essentials like skins, probes, sunglasses and sunscreen.
Backcountry Access offers the two
packs designed for women who enjoy
lift access and out-of-bounds skiing.
The shorter shoulder length on the
Stash Diva and Stash bc Diva enhances comfort and stability. The
packs feature insulated hydration reservoirs, storm-proof
zippers, diagonal ski mounts
and storage compartments
for ski probes and shovels.
With
the
considerable
growth the industry is experiencing in telemark and
AT skiing, and more resort
skiers venturing off into
the backcountry, all of
these new products are
sure to find a niche with
skiers,
snowshoers,
and
boarders
alike.
Mountainsmith’s Off-Piste
Contact: Steve Christie
Phone: (303) 417-1345
Email: info@bcaccess.com
Booth: 2701
Dakine
Contact: Amy Wall
Phone: (800) 827-7466
Email: amyw@dakine.com
Booth: 1701
Granite Gear
Contact: Dave Johnson
Phone: (218) 834-6157 ext. 16
Email: dave@granitegear.com
Booth: 5965
Gregory Mountain Products
Contact: Paul Gagner
Phone: (957) 676-5621
Email: pgagner@gregorypacks.com
Booth: 2227
MountainSmith
Contact: Gareth Richards
Phone: (303) 279-5930 ext. 122
Email: gareth@mountainsmith.com
Booth: 1227
Osprey Packs
Contact: Phil Schmitt
Phone: (970) 569-5900
Email: phil@ospreypacks.com
Booth: 1817
Sierra Designs
Contact: Andy Genewick
Phone: (303) 262-3050
Booth: 3621
17
SMR Retail Spotlight:
Midwest Mountaineering
By Lou Dzierzak
T
Specialty FEATURE
hirty-five years ago, Rod Johnson was a chemistry student at
the University of Minnesota.
When academia wasn’t doing much to
motivate him, he joined the University’s outdoor club. Johnson recalls,
“The outdoors lit my fire; that’s my
passion. Selling outdoor equipment to
your friends was just an outgrowth of
that.”
Johnson started Midwest Mountaineering on his kitchen table. In June 1971,
he rented a storefront and began building a reputation as the Twin Cities best
resource for outdoor equipment.
Over three decades, rising sales from
year to year became expected. Interest
in camping, climbing, paddling and
hiking brought customers to the store
looking for the latest equipment and
expert “been there, done that” advice.
Nine years ago, competition increased
significantly.
Galyan’s entered the
market and REI opened a flagship
store in a Minneapolis suburb.
“They arrived at a time when the industry was starting to plateau and
flatten out. All the outdoor companies
had to start running a more efficient
business in order to survive.
It’s a
big adjustment to make from managing
growth to fine-tuning a business,”
Johnson said.
Johnson often makes presentations
about his own outdoor adventures
around the world. The store’s credibility and reputation is reinforced when
seminar attendees can ask the owner
for destination and gear advice. “The
information gets people excited about
going on more trips and ultimate contributes to sales,” he said.
An early advocate of ultra-light camping, Johnson includes that philosophy
in his presentations. “I did my first
ultra-light hike in Alaska back in 1986
with a daypack, jacket, quart of water
and a few energy bars. One thing that
I’ve found is that a lot of our customers
want to lighten up their packs, but
don’t go much farther with the light
concept. They aren’t into it as much as
I am, ”Johnson explained.
In addition to reinforcing his brand,
the expos are good for business. Rod
Johnson reports that 17% of his store’s
annual sales come from the eight days
devoted to spring and winter events.
Visitors entering the store are asked to
add their name to a mailing list for
future marketing efforts. Today, there
are more than 30,000 names on the
list. Another 5,000 receive e-mail only
announcements. In order to shift funds
from paper, mail handling, and postage
costs Johnson is working to switch
customers to email communications.
After thirty years of growth, managing
in a stalled market is his biggest concern. Johnson explained, “Part of the
problem is people don’t have time to do
things anymore. And younger people
don’t seem to be as active as the baby
boom generation.”
With the advent of online stores, outdoor enthusiasts have more options for
equipment. “Our customers may purchase something from us, REI and an
online store. It doesn’t seem to have
hurt our sales,” states Johnson. Online
sales on the Midwest Mountaineering
website have had limited success.
“Visitors to the site are more interested
in the clinic listings and product information,” he said.
Despite flat or declining outdoor recreation participation rates and fickle
weather, sales at Midwest Mountaineering increased in 2005. Johnson is
planning to add a series of smaller
clinics at locations away from the store
and heavier promotion strategies to
carry that growth through 2006.
Success against competition has come
from building long term customer loyalty. Sales tracking shows that 80% of
the people visiting Midwest Mountaineering are repeat purchasers. For the
last 20 years, Midwest Mountaineering
has hosted a summer and winter expo.
Over time, the expos have become the
transition point from one season to the
next for outdoor enthusiasts. Spilling
out of the retail space into large tents
erected adjacent to the building, the
expos are a mix of clinics, seminars,
product
demonstrations,
vendor
booths and promotional sales. Typically, attendance at the expos tops
10,000 over a three-day weekend.
18
Specialty Market RETAILER
Specialty Market RETAILER
19
Business
Specialty SnowSports
Sales Climb 8%
Specialty NEWSwire
Overall sales for the
entire winter sports
market,
including
specialty and chain stores, were up 8%
in dollars to $696.9 million for the August through November period of 2005,
compared to $647.8 million reported
last year, according to the SnowSports
Industries America (SIA) Retail Audit.
Sales at specialty ski and snowboard
shops were up 8% in units and dollars
compared to last season, translating to
$540.9 million in sales compared to
$502.6 million in 2004.
Off to a very strong start this season,
specialty apparel sales (including tops,
bottoms, suits and snowboard) are
ahead 10% in dollars, reaching $179.6
million as compared to the August
through November period last year.
Snowboard equipment sales (including
snowboards, boots and bindings) were
up 7% in dollars with sales reaching a
total of $76.3 million for the period.
Freestyle boards posted a 24% dollar
increase, Freeride boards saw dollar
sales increase 10% to $15.0 million.
Overall equipment sales (alpine, snowboard, Nordic, Telemark and Randonee/AT) were up 4% in dollars as
compared to last season with sales totaling $221.0 million from August
through November 2005. In specialty
stores, alpine equipment (including
skis, ski systems, boots, bindings and
poles) grew 2% in dollars this season
over last.
Integrated ski system sales continue to
escalate totaling $31.8 million through
the end of November, an increase of
27% in dollars when comparing this
period to the same period a year ago. At
the end of November, integrated systems were 27% sold-through and retailers were sitting on 14% more inventory
Industry Financials
Rossi Helps Quiksilver
Sales Jump 82%
Quiksilver,
Inc.
consolidated
net
revenues for the
fourth quarter of fiscal 2005 increased
82% to $637.4 million from $350.3
million last year. Consolidated net income for the fourth quarter of fiscal
2005 increased 35% to $33.6 million
from $24.9 million the year before.
Fourth quarter fully diluted earnings
per share was 27 cents versus 20 cents
last year, with both amounts as adjusted for the two-for-one stock split
that took effect in May 2005.
Consolidated net revenues for the full
year of fiscal 2005 increased 41% to
$1.78 billion from $1.27 billion in fiscal 2004. Net income for fiscal 2005
increased 32% to $107.1 million from
$81.4 million in fiscal 2004, and diluted net income per share for fiscal
2005 increased 26% to $0.86 from
$0.68 in fiscal 2004.
Net revenues from the company’s
newly acquired Rossignol and Cleveland Golf businesses totaled $214.5
20
By the end of November, specialty retailers had 13% fewer boards in stock
than they did at the end of November
2004. In total, the snowboard category
was 32% sold-through.
million during the fourth quarter of
fiscal 2005 since the effective date of
the acquisition on July 31, 2005.
Net revenues in the Americas increased
84% during the fourth quarter of fiscal
2005 to $288.9 million from $157.2
million in the fourth quarter of fiscal
2004. Net revenues in the Americas for
the full year of fiscal 2005 increased
37% to $843.7 million from $616.8
million in fiscal 2004.
Lafuma Fiscal 2005
Profits Climb 3%
The Lafuma Group results for fiscal the
year ended September 30, 2005, reflect
a year of strategic development, acquisition-based growth and a slower economic environment.
Net profits were up 3.3 % at €8.4 million ($10.5 mm) benefited from the
positive impact of the goodwill amortization resulting from the OBER acquisition. Operating profits were down
12.5% at €13 million ($16.2 mm) due
to a decline of 15.8 % in the camping
furniture business along with a combination of related circumstances.
units than at the end of November
2004. Last season at this time, ski systems were 26% sold-through.
Twintip ski sales continue to impress,
up 54% in dollars, reaching $3.9 million in sales by the end of this period.
Inventories were 55% greater than they
were last November and the category
was still 31% sold-through.
After a slow start last season, the Nordic ski equipment category is showing
an increase of 11% in dollars this season over last. Nordic skis (up 2% to
$2.9 million), boots (up 13% to $2.7
million), bindings (up 14% to $1.1 million) and poles (up 37% to $724,000) all
experienced dollar inclines.
Last season’s early snow in the West
may be playing a factor in the slipping
sales (dollars down 13%) of Telemark
ski equipment. Sales of Telemark skis
and bindings dropped in dollars 22%
and 26%, respectively. Telemark boot
sales ended the August through November period up 1% with sales at
$911,000.
Oakley Sued for Razrwire
Patent Infringement
USAmerican LLC of Beverly Hills has
filed a patent infringement lawsuit
against Oakley, Inc. and Motorola, Inc.
in the U.S. District Court for the Central District of California alleging that
the popular "Razrwire" sunglasses and
headset combination jointly marketed
by Oakley and Motorola infringes U.S.
Patent No. 4,902,120 ("the '120 patent").
The '120 patent was filed in November
1988 by Frank Weyer, an attorney and
engineer, who was annoyed by his earphones falling out while jogging. After
the '120 patent issued in February
1990, Mr. Weyer formed a company,
American Innovative Products, Inc., to
market his invention.
Advertising in running magazines and
at running events, Mr. Weyer sold several thousand pairs of his sunglasses/
earphone product, which were called
"Cruisers." Mr. Weyer also licensed his
invention to Virtual I/O, who used the
patented earphone mounting system in
a virtual reality goggle product called
"Iglasses."
Specialty Market RETAILER
Specialty Market RETAILER
21
Business
Specialty NewsWire
NSAA Revises Environmental Charter
In an effort to renew the ski industry’s commitment to
environmental
stewardship, a fiveyear revision to the
Environmental
Charter has been
released by the National Ski Areas Association (NSAA). The Charter, part of
the Sustainable Slopes program, is a
comprehensive list of environmental
principles created to provide ski resorts
with a framework for sustainable operations. This marks the fifth anniversary
of Sustainable Slopes and the Charter’s
first revision.
The Charter also includes a Climate
Change Policy adopted by the ski industry in 2002 in an attempt to raise
awareness of the potential impacts of
global warming. The policy encourages
action in the effort to reduce greenhouse gas emissions.
Black Diamond Introduces
Ski Boot Line
Black
Diamond
Equipment Ltd. will
develop a new line of
alpine touring and
telemark ski boots.
This is a logical step
for Black Diamond,
which has been both
S CARP A' s
Nor th
American distributor
as well as its primary driver in terms of
telemark ski boot designs and concepts
for eighteen years. SCARPA and Black
Diamond terminated their partnership
as of January 1, 2006, with Black Diamond assuming responsibility of the
SCARPA boot line until the end of the
current ski season.
Patagonia, prAna, & Keen
Aid Conservation Alliance
Continuing its partnership with The
Conservation Alliance, Keen will give a
pair of shoes to anyone who donates
$35 to The Conservation Alliance. The
event is Sunday at 5:00 p.m. at the
Keen booth.
22
Keen hosted a similar event at the August show and raised more than $8,000
for the Conservation Alliance in just one
hour. Patagonia and prAna have also
donated product to the event.
Amer Re-orgs Salomon;
Moves Production
Salomon, the newly-acquired winter
and outdoor sports division of Amer
Sports, has launched a three-year turnaround program designed to "ensure its
future competitiveness." The program
includes a reorganization of Salomon
operations and the elimination of up to
400 positions, primarily in France.
Other important measures include a
reallocation of the production of Salomon skis and Atomic ski boots to ensure the optimization of Group benefits.
Salomon will work in close collaboration
with the workers' representatives in
order to find the best possible solutions
for the employees via job revitalization
and other measures. This social plan is
expected to be ready by the end of April
2006.
Marmot Test Centers Open
For over two decades,
Marmot has utilized
the mountain professional to test and
evaluate product designs. In the belief that
hard, everyday use in
the harshest environments by individuals who know their equipment needs
will yield the best information to examine and improve design, Marmot has
established five international test centers throughout the alpine world to
better refine this evaluation process.
These five centers represent diverse
mountain environments, ranging from
the warm, wet French Alps to the cold,
harsh and windy Scottish highlands to
spindrift powder slopes of British Columbia to the sub-zero granite walls of
the Tetons and the vertical chutes of
Jackson Hole. Each center has established itself as a leader in adventure
sport and safety. Each provides a
unique crucible to insure continued
Marmot product leadership.
The Test Center process leverages all
Marmot centers, athletes and guide
services to insure proper quality and
function, and to discover flaws and
defects before full production. Both
commercial and R&D products are
tested. R&D products are typically concept pieces developed 2 or 3 seasons
prior to commercial launch. The test
process codifies fit, finish, function and
aesthetic appeal, is monitored and
managed by the VP of design and development, and highly influences future
design, production, sales & marketing.
LaSportiva Italy Merges
with U.S. Distributor
La Sportiva's North American distribution operations have become part of La
Sportiva Italy’s unified global distribution consortium. La Sportiva S.p.A. - the
Italian parent company and manufacturer of the LaSportiva brand - and La
Sportiva N.A., Inc. - the North American
distribution company founded by Collin
Lantz - merged together into one unified
company.
The company hopes to achieve synergies in its marketing, product line management, R&D, and finance operations.
New access to resources from the Italian parent company is expected to fuel
growth in the coming years.
La Sportiva N.A. also recently reported
a 30% growth in preseason sales from
spring ‘05 to Spring ‘06 with a considerable spike in the trail running category.
What’s more, the Leisure Trends Group
recently reported that La Sportiva dominated the U.S. climbing shoe market in
2005 with over 35% overall market
share and a 65% market share for price
points over $100 and a 65% market
share in the Mountain Boot category.
The La Sportiva N.A. operations recently restructured its research and
development functions with a focus on
trail running and light hiking. North
American Product Manager, Gary
Banik, will continue to head up the
Boulder, Colo. R&D office with a new
emphasis on co-developing products
with the expansive Italian R&D team.
As always, you will always find more in-depth
analysis of these stories and much more each
week in The B.O.S.S. Report, the Bicycle,
Outdoor, and SnowSports newsletter.
Specialty Market RETAILER
Hot Positions This Month at...
SALES REPS WANTED
SMU MERCHANDISING MANAGER
Manage the merchandising and operations
functions for assigned SMU categories
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Operations Manager, SMU Sales Manager and
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Bachelor’s degree in business, merchandising,
or related field - or - experience equivalent to
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Possess knowledge of retail apparel market
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Original Buff, S.A., Spanish manufacturer of
multifunctional headwear and accessories is
seeking accessory sales reps that have strong
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Identity Sports is looking for dynamic and
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Sew free technology. Stop by at Outdoor
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Springboost, A Swiss performance based
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RETAIL MARKETING MANAGER
Eagle Creek and Clive are currently seeking a
full-time Product Designer to help continue
and further their leading positions in the luggage, bag, backpack and accessory marketplace.
The ideal candidate for this role will have a
degree or diploma in design, and at least 3
years experience in the product design and
manufacturing fields. Strong design, organizational and adaptability skills are a must,
plus an expert knowledge of Adobe Illustrator
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Position is located in Vista, California, available immediately.
More details on these and many other career opportunities can be found at www.SportsJobSource.com, the first and only fully interactive career platform for the sporting goods industry. For more details about SportsJobSource.com, or to find out how your
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Specialty Market RETAILER
23
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