UK Golf Retail Market Update: April
Following a few months of poor results, we all had our fingers crossed for some better numbers in April. However as the poor weather continued we weren't feeling that confident.
April was wet (15% more rain days), dull (only 90% of usual sunshine) but warm (14% warmer than average) - so were there any glimmers of sunshine? In fact, yes.
Surprisingly, April was actually a pretty good month - but not for everyone. Total sales value was up 7.4% Vs 2017, which meant the first increase in monthly performance this year. This drags back the annual number to -4.4%: still not great, but an improvement all the same.
So, is everyone happy?
Not entirely. The On-Course sales seem to have done better this month: up 15% compared with Off-Course, which was down by just 3% (again, an improvement over recent months). The gains were mainly felt in hardware, so those retailers focusing on apparel or consumables won't be feeling the benefits.
Weather stats would also suggest the South of England and Wales suffered more than the North and Scotland.
So, is everything up?
No. There are ups and downs across the board. Looking at our usual sales-change graphic, you can see that the two biggest categories drove the growth. WOODS and IRONS were both well up in value, so it seems the new launches are going very well.
There were also big jumps year on year in OUTERWEAR and WEDGES.
With a combined drop in BALLS and GLOVES, and an increase in OUTERWEAR and TOPS, it's pretty clear that those that played golf needed protection. While a 4% drop in BALL units, On-Course, would suggest reductions in play year on year.
So, is the growth all from Average Sales Price (ASP), as it has been for the last year, or so?
Actually, some groups have had a real units increase. While prices are up, units have also seen some growth year on year. WOODS saw one of its biggest monthly gains in a long time: up 11% in units.
Two other crazy categories were OUTERWEAR, which was up 45%, and saw one of the largest ever monthly changes: and DISTANCE DEVICES, which saw a real fall of 26% - year to date this is the worst performing category in value and units.
So, is ASP up as well?
Not wanting to repeat myself but, yes, ASP is up in most of the key categories. IRONS, WOODS and WEDGES all saw double-digit gains in ASP. Average WOODS price is ￡224, including all categories - Drivers, Fairways and Hybrids. That is more than the average driver price a decade ago.
Another figure to note is the drop in ASP of OUTERWEAR, which has seen a 5% decrease Vs 2017. This seems to have come from some brand-swapping; with consumers willing to try other brands. It will be interesting to see if that continues or if it is just a promotional blip.
The weather was bad, so how did the On-Course categories still manage to sell more units?
Well, I think this might be one of the first years where we have seen that the effect of the On-Course indoor fitting studio.
On-Course saw an increase in units of 26% in WOODS and 12% in IRONS. Pros have been investing in indoor swing rooms and swing tracking devices for a number of years. With the weather relatively poor and traffic down, I have to assume that these facilities are paying dividends. On-Course retailers are now able to sell, and fit, customers out of the rain!
What's next?
Well, we are getting into the core of the season now so I hope to see some increase in participation. May has been great so far, so let's hope many have got out and given their new clubs a go. BALL and CLOTHING brands will certainly be looking for a bit of an up swing.
UK Retail Manager / Head of Retail
6 年Clothing sales will be suffering due in part to dramatic price increases over the last 24 months. Consumers do not want to pay ￡45 for an Adidas polo or ￡65 for UA. Balls sales are not indicative of a drop in played rounds. More over the off shore online sales have increased ie. Vice golf balls ￡98 for 4 doz. Costco Kirkland balls etc. Also prior to the season kicking off Titliedt, T/made and Srixon were all offering 4 doz for the price of 3 to clear old ball stocks before relaunching. Hardware will be skewed as this only reflects sales and with AG's fantastic double value trade in, I can imagine that margins are slim. The golf industry is a cottage industry and it needs to be more open, honest and have greater integrity. This needs to start with the big brands. Two years ago wedges were ￡89 now they are ￡120 this is extortionate. Scotty Cameron 2015 putters were ￡229 now ￡379. Ping did a piece of work with drivers testing each from G5 to G400 total yds gain from 2005 -2018 being 36 yds. I love the game the sport is all about integrity, brands need to go back to this core value. AP2 716 irons ￡749 AP2 718 ￡949
Toptracer Director of Operations and New Business Strategy - Regions EMEA & ROW
6 年Great to see overall positive growth figures for April YOY, particularly after Q1's challenges driven by poor weather and resulting rounds played being down. Clothing needs a good couple of months trading now, prior to late summer and autumn drops on the horizon. I can see some brands and retailers being forced into promotional activities in an attempt to comp last years sales and move inventory through the supply chain. The UK market has had a few good years of growth recently in apparel as retailers have improved their in-store merchandising and golfers become more fashion conscious... expecting this to continue. I did hear the weather outlook for the next 6-8 weeks is very good so...fingers crossed they've got it correct and rounds played booms!