June has finished and marks the half way point of year – so how has it been in golf retail so far in 2017? Time for another market update! Continue reading “Market update – June 2017”
Its been a great year in the golf trade so far. Year on year, we see increases in participation and sales in nearly all categories that have EPOS systems ringing in the cash across the land. But is everyone a winner?
2016 really was a year of two halves. Awful weather in the first 3 months really hit the participation and as a result the on course retailer struggled. Five named storms between January and March meant courses were closed across the land with some not seeing any play for over 8 weeks. Keen golfers still wanted to get their golf fix but went to the off course stores and ranges to see what was going on.
By the end of April the on course market was 4.5% down in value while the off course was racing away at 13.8% up. By the end of June the on course was still down 2.77% while the off course was still up over 10%
Fortunately the second half of the year saw an amazing turn around with great weather and lots of play. The off course still maintained its strong position and the on course managed to recover to just 0.5% down on the year. This was a great result all round and showed one of the strongest H2 performances seen for a long time. Overall market ended up at +5.3% in value terms v 2015.
Performance was mixed across the categories with the off course having an amazing run on clothing. Here the overall changes at the end of the year.
The relative differences in performance meant there was a shift to the off course for a the first time in a few years. Overall the on course still had the largest split of sales but this had reduced to 54.6% down from 57.8% the year before.
It was the same story across all categories except trolleys with the biggest change coming in apparel with the off course growing from 31.8% to 37.8% of the total market. Trolleys actually saw a small decline.
So how did consumers spend their money?
Overall spend saw a slight change in the overall priority of the categories
Woods and irons are still the top two categories, Footwear took the number 3 spot for the first time – overtaking balls. Tops was the biggest clothing category with putters being the smallest of the tracked categories accounting for 3.5% of spend. Hardware accounted for over 41.8% of total spend.
How did spend compare to last year?
2016 saw some big changes with 3 of the tracked categories seeing double digit growth. Biggest mover was bottoms at over 14% growth, followed by wedges and shirts.
Biggest looser was weather wear seeing a 2.6% drop in sales. Trolleys also had a small decline – otherwise it was growth from all the categories.
What drove the changes?
Main driver for the market changes in all the hardware categories was an increase in ASP. Putters saw the biggest gains ending the year up 19.4%, with irons up 10.5% and woods up 8.7%. Many of the changes were the effect of sustained drops in the £ v the $. Brands facing increasing costs had to put prices up to the retailers on big ticket items.
Interestingly two of the biggest movers – shorts and bottoms saw slight ASP drops – was promotion used to drive the increased sales?
Big changes in ASP lead to some decreases in units.
Declines were seen in 7 categories – mainly hardware or big ticket items. The biggest increase in ASP was met with the biggest drop in units, Putters we down -8%. Average price of a putter had got up to £130. No longer the item you change on the turn.
All in all 2016 was a topsy-turvy year that saw a great performance from the off course and a par save from the On.
As the days shorten and the thoughts of Christmas start creeping in, its time for most to wrap up their season. Here are some brief observations about what is going on in the market place at the end of Q3.
Overall the market is still up on the same time last year (8.5% up in value September 2016 v September 2015). This is much better than lots were expecting and better than lots are feeling. In truth everyone is up (just) but the off course is doing really well.
Time for another update. Anything new I hear you cry – well not on the face of it but here are a few tasty morsels.
According to Golf Datatech – the authority on golf retail numbers – the market year to date July 2016 is up – 2.9%. However this is not across the board and not in all channels.
Off course is fighting back and seems to have benefited from some smart retailing and poor weather earlier in the year. Up 10.6% in value YTD with much of the growth coming through apparel sales.
Has the Pro suffered?
Time flies when you are having fun! I really am not sure where the time goes, but more than half the year has flashed past and its time I put some more market stats together.
Back in January when I was staring in to the crystal ball I tried to put some thoughts on the year ahead. I said that the year would be pretty dependent on the weather. That the football championships would create a decline in June figures and that hardware might get a bit of a boost. I also said that I expected to see a reaction from the Off course to grab back some of the share that it has lost last year. Six months on and I can say that I was pretty close on most points – so what has happened?
So how did the UK golf market perform in 2015? Here’s a quick overview…
For many it was up and down with various hits and misses across the product categories.
Overall it was positive with total sales up 2.3% – but before we break out the champagne lets look at things in a bit more detail. All categories except woods and outerwear experienced some growth. With the strongest category being Wedges up 9.1%