Outdoor Insight

Q: How was business in 2018? "So far, we are tracking close to last year, which was a record year. We have had an unusually wet cold Spring and then a very unusually hot and rainy Summer… We haven't really seen any adverse competitive pressures this year. We are much more aggressive in replacing vendors that don't understand the needs of specialty and how to work with us a partner." — Mike Leffler, president/owner, Appalachian Outfitters, Peninsula, OH "The last 12 months have been the best we've ever had. We feel very fortunate about that. Despite all the things that go on in the news and the political divisiveness and everything, people of all outlooks and demographics and ethnicities still like to go outside. It's reassuring as an outdoor retailer to know that there are still things that are somewhat universal about people and things that really don't change. "From a business perspective, camping gear like stoves and backpacks and sleeping bags had a challenging year for us. Apparel was stronger than it's been in quite sometime for us. We also saw an uptick in our foot traffic in the store." — Wes Allen, principal, Sunlight Sports, Cody, WY Q: Heading into 2019, which issues facing retail have you most concerned? And what are you most optimistic about? "A potential trade and tariff war could not only impact many of our vendors and the products we purchase, but could also trigger a potential economic downturn. On the plus side, Grassroots is begin- ning to foster special relationships with some of our vendor partners. We will be offering some exclusive Grassroots products in Spring of 2019 and those should help us level the playing field with some of the chain stores. Our hope is that other vendors see what these exclu- sives do to not only bolster our sales and margins but promote their brands as well." — Mike Leffler "I am optimistic about the year ahead. The consumer trends are going the right way. I feel enthusiastic about the engagement we are seeing with younger consumers. There are big cultural things going on that have the younger demographic looking for an escape from their screens and from bad news. "Things I am watching are with brand partners — many have stabilized and tried to figure things out with online [strategy] and third-party and brick-and-mortar distribution. The core, great brands are figuring it out. We are trying to keep open communica- tion with all of our brand partners so we can see any issues coming before they take a whack at our business." — Wes Allen 6 • Outdoor Insight • November 2018 outdoorinsightmag.com T H E B I G I S S U E S OUTDOOR EYE We asked, they answered. Two outdoor retail stalwarts sound off on three key questions. By Cara Griffin "WE REACHED OUT TO SEVERAL brand managers to express our con- cern. We pride ourselves on offering pinnacle product. Having your products curated by the world's low-price retailer does not support the image of quality and heritage. I understand that not everyone can afford the brands we carry, just as not everyone can afford a luxury auto. My hope is that the new out- door enthusiast starts off with lower cost gear and as their love for the outdoors grows and their incomes increase and their needs for more technical equipment grows, they begin to interact with their local spe- cialty shop. "The comments made about specialty being elitist and not for diversity were simply wrong. Independent specialty dealers provide some the highest levels of customer service as well as being more engaged within their com- munities than any chain. We can only do that if the products we carry drive enough revenue to allow us to invest in our stores, in our communities and in staff training. We made it clear to brands that they needed to do what is best for their business, but that we would also do what was best for ours. Our position is that we will not carry brands (not commodity brands, but mainstream lines) that choose to devalue their brand equity and their histori- cal place in the outdoor industry in search of short term growth at whatever the cost." — Mike Leffler "THE WALMART PREMIUM Outdoor Store launch was a big deal because one day it just turned on, and as retailers we had no real warn- ing. I respect the brands' rights and choice to choose what they think is their best distribution channel. We all make our own decisions about our business. However, for the retail partners that have been doing business with brands and have committed dollars to those brands, we got no warning. We order our product from those brands nine months before it shows up in our store. So the product that was show- ing up on the Walmart Premium Outdoor store in August, we had ordered the previous November. We would have had a different ordering strategy if we knew those brand partners were going to open up on the Walmart Premium Outdoor store. So that is why the pushback happened from specialty retail. We had already invested in brands and then the terms of our investment changed. "The reality is that Walmart doesn't want any of those brands until those brands get big enough to have Walmart notice them. And the way brands can get big enough for Walmart to notice them is to have specialty partners push the brand. That gives specialty the right to speak up. But the situ- ation also showed some of the challenges of being a specialty retailer. Things can change really fast." — Wes Allen Q: One significant development in the past few months was the launch of Walmart's Premium Outdoor Store featuring many respected outdoor brands. Several of the brands initially on the site when it launched changed course and are no longer selling on the Walmart Premium Outdoor Store following significant pushback from the outdoor specialty retail community. In the aftermath, some sug- gested that the specialty channel was being elitist in trying to dictate which brands do and do not belong at Walmart. Others remarked on the strength of the specialty community in "circling the wagons." What is your take on what happened and what it means going forward ?

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