(file photo: Christy Sports)

Ski Retailers See Pre-Season Sales Driven by Pent-Up Demand

McLean, VA – SnowSports Industries America (SIA) and Leisure Trends Group this week released sales numbers for August through September 2012 collected from the point of sale systems of more than 1,200 snow sports retailers across the U.S. Results show that pre-season snow sports sales increased 2% in units and 1% in dollars sold to $307 million this fall.

A year ago many expected a second season of epic La Niña snow and record-breaking sales and market momentum after the stellar 2010-11 season was at an all-time high. The highly anticipated repeat of the previous winter’s epic snow and record-breaking sales never materialized last season and the enthusiasm and positivity that were palpable in August and September died on the vine.

(photo: Christy Sports)
(photo: Christy Sports)

This time around, it isn’t last season’s momentum driving sales; it is pent-up demand and a solid sense of optimism about snow that are impacting early season sales. Sales through September were at a four-season high in both units and dollars sold with notably strong sales in the alpine equipment and accessories categories.

Specialty inventories were up 14% in accessories and more than 30% in equipment and apparel following the 2011-12 winter season. After the pre-season sales, inventories are still fatter with 11% more equipment and apparel units and 4% more accessories units, but much healthier than expected as resorts open and participants begin to make decisions based on early season conditions and forecasts. Lower than expected inventories indicate that consumers are exercising pent-up demand. In fact, consumer research with the Snow Sports Insiders panel suggests that about three-quarters of participants are expecting better snow conditions this season and are optimistic about the coming season. In general, participants are saying “it can’t be worse than last season.”  Consumers are not going wild, but they are buying and looking forward to better snow this season.

Sales by Channel
Specialty shop sales fell slightly from $156 million in the August to September period in 2011 to $150 million in August to September 2012. Specialty dollar sales were down 3% in equipment, 2% in apparel and 7% in accessories. Keep in mind that shelves were stocked with in-season gear during the 2011 pre-season sales, in stark contrast to the high level of carryover gear available at deeply discounted prices for the current pre-season retail sales. In fact, carryover sales in specialty were up 34% this year compared to last, helping to clear swollen inventories.

Chain store sales remained flat at $72 million even though equipment sales were down 19% in the pre-season. Chain stores have limited their equipment offerings and much of the decline in sales can be directly attributed to this choice rather than slack demand. Chain store apparel sales brought in $39 million, down 4% compared to last season, while accessories sales increased 15% in dollars sold to $27 million. Sunglasses, headwear, base layer and gloves sold exceptionally well in chain stores this fall.

Online sales surpassed chain store sales in the snow sports market this fall. Online sales were up 11% in dollars sold to $85 million and up 19% in units sold. Alpine ski equipment sales increased 18% in dollars sold, snowboard equipment sales increased 18% to more than $8 million, apparel sales grew by 6% and accessories sales soared 17% in dollars sold online.

Quick Pre-Season Trends:

  • Alpine ski equipment sales are up 5% in units and 2% in dollars through September 2012.
  • Snowboard equipment sales down 4% in units and down 6% in dollars sold to a four-season low of just $26 million in sales during August and September.
  • Cross country equipment sales continue to suffer from last season’s snow drought, down 9% in units sold and down 20% in dollars sold to $1.7 million.
  • Apparel sales make up more than 40% of all snow sports retail sales during August and September; apparel sales fell 2% in units and in dollars sold during the current pre-season sales period.
  • Accessories sales increased 4% in units and 7% in dollars sold through September; helmets, luggage, gloves and base layer are selling well so far.

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