Snowsports Retail Sales Fall 5 Percent

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08 May 2009

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SAM Magazine-McLean, Va., May 8, 2009-Retail sales for the 2008-09 season fell 5 percent, as fear about economic security kept consumers, retailers and suppliers in a cautious mood, according to Snowsports Industries America (SIA). Overall, the season's sales totaled $2.82 billion, compared to last season's $2.95 billion. Unit sales declined three percent.

Less severe economic events in the past have had little impact on snow sports sales, SIA said. However, significant reductions in wealth, and job insecurity at the highest levels resulting from this particular economic downturn, led to declines across all income levels. Additionally, first indications of pre-season order activity for next season suggest that retailers are not betting heavily on increased sales. As a result of these lackluster results, SIA anticipates some consolidation of retail shops, a reduction in chain storefronts, and consolidation of brands.

The bright spot in this difficult season was Internet sales, which grew as specialty shop and chain store sales declined. Otherwise, the best news was in accessories, for which sales were nearly flat with the previous season.

Apparel sales declined only slightly, as a small 2 percent rise in unit sales was offset by a decline of nearly 6 percent in dollar sales-an indication of the steep discounting needed to entice customers to buy.

Current-season equipment sales took the biggest hit, declining 12 percent compared to last season. Inventories of unsold equipment swelled almost 19 percent in dollars and 12 percent in units compared the previous year as retailers sold 75,000 fewer alpine skis, 8,000 fewer Nordic skis, and 34,000 fewer snowboards. Carryover equipment did better, as retailers discounted prices and cut margins to the bone to bring in customers and move inventories.

The market data presented in this report comes from the SIA Retail Audit conducted by the Leisure Trends Group. \