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Showing posts with label outdoor industry association. Show all posts
Showing posts with label outdoor industry association. Show all posts

Wednesday, June 10, 2009

Retail - April Outdoor Sales Indicate Declines Easing,

Retail sales for all core outdoor stores combined (chain, internet, specialty)* grew 2% compared to last April, moving from $339M to $347M, according to the most recent edition of The Outdoor Industry Association (OIA) Outdoor Topline Report, produced for OIA by the Leisure Trends Group. Sales for the four months of the year totaled $1.4B, down 5% from the same period in 2008.

Outdoor Chain – Shoppers ReturnAccording to the OIA Outdoor Topline Report, chain stores saw sales surge 20% in units and 18% in dollars. Every major product category (equipment, equipment accessories, apparel and footwear) and most sub-categories gained. Products that appeal to families and car campers fared especially well. Recreation tent sales shot ahead of last April by 78% in units and 64% in dollars. Sun shelters were up 88% in units and three-season recreation tents, retailing for $124, jumped 71%. Synthetic fill rectangular bags, retailing for $32, increased 82% in units whereas the more technical synthetic mummy bags, at $99 retail, grew 31%.

Outdoor Specialty – Declines Slowing But Not Yet ReversingIn specialty stores, April declines were not as severe as in past months, as total sales fell 1% in units and 4% in dollars compared to April 2008. So far this year, all specialty unit sales declined 6% and dollars fell 10%. Each major product category (equipment, equipment accessories, apparel and footwear) saw single-digit declines compared to last April. There were bright spots this month, too, as synthetic sleeping bags, medium-sized packs, climbing gear, multisport shoes, hiking boots and various equipment accessory categories posted gains.

Outdoor Internet – Retail Prices Rise, Units Fall as Online Retailers Reign in Clearance ProductInternet sales totaled $54M this month, falling 20% in units, rising 4% in average retail-selling price and dropping 17% in dollars. All year, Internet sales have been sporadic, up 35% in January on huge carryover sales, down 9% in February, back up 14% in March and now down 17% in April. Higher retail-selling prices across many categories coupled with dramatically smaller carryover sales (defined as old and/or discontinued merchandise) point to either a lack of available merchandise and/or online retailers reigning in the amount of rock-bottom clearance priced product they are offering. If this is the case, total sales may have fallen but profit per turn might go up.

Hands-on Hydration Reaching Plateau?Hands-on hydration, consisting mostly of water bottles, is now an $89M category across all store channels in the current rolling year. However, the category seems to be reaching the height of its growth, after a meteoric rise. While still up 15% and 28% in specialty-store units and dollars so far this year, the hands-on hydration category dropped 10% in units and 2% in dollars in specialty stores compared to April 2008. The category plunged 54% in online units and 57% in dollars from last April, while still seeing growth in chains. Looking at all three store channels together, total units were flat in April and dollars grew 5% on a 5% increase in retail price. Still, with $6.9M in total April sales and $22M YTD, the category is a long way away from the 2006 totals of just $2M in April and $6M in the January – April YTD period.

Paddlesports – Canoes Bright Spot for AprilCore paddlesport stores (specialty, chain, internet) brought in $36M in April and $86M so far in 2009, dropping 1% and 3%, respectively, against the same period last year. While all boats, with $21M this month, dropped 2% in both units and dollars, both recreation kayaks and canoes gained steam compared to last April. Recreation kayaks with an average retail price of $769, up 7% from last April, gained 3% in overall dollars for an April total of $11.2M. Canoes gained 5% in units, 4% in retail price and 9% in total dollars this month.

Tuesday, June 9, 2009

SNEWS Special Report: A broken supply chain? The retail perspective

The quest to help facilitate the discussion around finding a solution to a badly flawed outdoor industry supply chain began with an email plea to SNEWS® in March from a number of retailers. The email called out a list of challenges to the way we buy and sell, from a retailer's perspective:
  • too many trade shows, both regional and national exist, and yet we keep adding more;
  • early preseason and pre-show buying deadlines keep moving forward at an alarming rate;
  • rep line previews are taking longer, as is the amount of time required to write an order, sometimes as much as four days, for a single brand;
  • minimum order amounts for best terms continue to escalate in price, making them unreasonable for most small specialty retailers;
  • reps for larger brands demand time in stores from buyers and store owners often during the busiest selling seasons, right when owners and buyers need to be focused on managing their business, brands and staff;
  • and the pressure from too many vendors -- each selling too much me-too product -- to buy multi-categories from each vendor, often leading to retailers taking on inventory they don't want or need to get best terms.

As SNEWS started to peel back the layers of the onion to work on better understanding the issues from all sides, we quickly realized there was going to be no simple answer to what has become a very complicated issue. We spent several months investigating, including visiting factories overseas, interviewing numerous manufacturers (CEOs, production managers and designers), talking with sales reps, trade show organizers and other retailers. Then we chatted with industry consultants to seek opinions, garner background information and decide how best to proceed. One common thread began to appear among the complexly woven tapestry: Everyone shares some responsibility for how we arrived at the current supply chain problem and everyone must act collectively to find a solution.

Somehow, in the headlong race over the last 15 years to chase the almighty sewing dollar, we have managed to create a production and sales cycle that is so complex even executives coming into our industry from far more seemingly complicated markets shake their heads in wonder. Few retailers and even fewer manufacturers from other industries are making buying and selling decisions a year in advance -- decisions that can make or break a season or even a year.

Order lead times have lengthened, necessitated in part because manufacturers insist they need 10 months or more lead time for greige goods (i.e., unbleached and undyed textiles). That means reps are showing up in key stores in November, asking buyers and store owners to make buying decisions for products that won't deliver until the following August, intended to sell during the months of September through December.

The problem with this, retailers told us, is they often have no real idea what will sell through this year in order to make an educated guess as to what colors and styles might sell well next year. Worse, few feel confident enough about their personal crystal balls to place orders when there is no way to gauge the economy, trends or consumer buying moods that far in advance. In the outdoor specialty market, with few exceptions, the strongest selling season for most retailers is November through January (on average, 25 percent to 30 percent of all sales are made during this time). The second most important selling season appears to be May through mid-July. With the current ordering cycle, reps are coming into stores during the busiest selling seasons, and buyers and storeowners, and often key floor sales staff, are having to spend significant off-the-floor time in meetings. Retailers also point out that once the rep has left, their scramble is not done, as most manufacturers now are demanding paper by December for the fall deliveries and paper by late June and early July for the following spring deliveries.

If it were only as simple as viewing product and placing an order, that might be one thing, but retailers also tell us that during those same peak sales times, they have to be in contact with their sales reps by phone or email, national sales managers by phone, and in some cases, even sales VPs or company owners to ensure turns and profits are maximized and the best terms are worked out. Since every retailer is doing much the same thing, and there are only so many reps and sales managers to go around, retailers tell us that this leads to a circus of voicemail messages, phone tag dances, and games of hide-and-seek that are enormous time wasters. Multiply that scenario by 100 brands all demanding essentially the same performance and one begins to wonder how any business is getting done at all, let alone good buying decisions are being made.

Most retailers we spoke with are responding to the shifting economic climate and consumer buying habits by modifying traditional preseason and fill-in strategies to align more closely with inventory need. The majority is now allotting only 55 percent to 60 percent of their dollars for preseasons with the rest kept in pocket for fill-ins and chasing bargains. But manufacturers still seem to want retailers to essentially super-size their orders to gain the most favorable terms, we were told. And that just doesn't seem healthy either.

Retailers further explained to us that manufacturers seem to be on the same path, despite the economy, of trying to push preseasons earlier and earlier. Retailers assert that manufacturers apparently want to tie up more of the retailers' dollars earlier, so they can garner a competitive advantage and, perhaps, ensure earlier production time on the factory floors in Asia.

Not one retailer we spoke with told us manufacturers were lowering thresholds to garner the best terms -- even in this challenged economy. In fact, most manufacturers appear, according to retailers, to be insisting retailers maintain flat to increased business to earn best terms -- often requiring they take on more SKUs and a broader product mix than a retailer might wish to carry from that particular vendor. Retailers told SNEWS that while they suspect manufacturers are doing this to prevent cherry-picking of lines, this kind of business approach is not only short-sighted, it is the kind of strategy that created the overstock scenario many retailers found themselves in when the market collapsed in late 2008. And, it is this approach to force-feeding a retailer that is the primary reason why so many preseason orders were cancelled this spring, leaving manufacturers stuck with spring/summer inventory that had landed, but wasn't selling.

Additional preseason trade shows, regional shows, rep shows and moving the dates on what is currently considered our national show, Outdoor Retailer, are of no help and do nothing, really, to address the overall issue of a broken selling cycle, retailers said. The earlier the shows move, they said, the earlier still the manufacturers continue to push their reps to get in to see key retailers, and round and round the merry-go-round goes.

Retailers acknowledged, somewhat wistfully, that the days of heading to an August or January national trade show for the inaugural "show and tell" of new product, followed by the buying decisions either at the show or a month later, are long gone. There are too many brands with expanding product lines and production spread all over the globe for that to ever work again. In fact, some argued, we have too many brands to begin with now…but that's a topic for another day.

So, from a retailer's perspective, what are the solutions?
1. Stop all the show madness -- pre-shows, manufacturer preview shows, regional show additions and trade show date dancing. Less is more here.

2. Reps are welcome (begged for and wanted a number of retailers told us) in the stores November through December and June through July as long as they are there to drive sales by supporting the sales staff and working the floor, not give a line presentation. If manufacturers are creating a scenario where reps feel they need to be in the stores giving line presentations -- sometimes lasting multiple days -- then the manufacturers need to shift the order and production timelines to eliminate this.

3. Manufacturers need to realize that retailers are going to order less in preseasons, and as a result, require more with fill-ins. For retailers, it is about turns, not about how much has been preseasoned. Core products should never be out of stock.

It is VERY important, however, that everyone reading this, realizes, as SNEWS does, that the above is but one view of a very complex situation -- it is how retailers are looking at the supply chain problems. Next up, SNEWS will take a look at the distribution challenges through the eyes of the rep.

Our goal with this series of editorials is to engage the industry in healthy discussion. Perhaps open a few eyes to seeing things through a new lens, and, hopefully, help us all arrive at a series of ideas and action items that will, in the long term, lead to a healthier and more profitable industry for us all. --Michael Hodgson

Thursday, May 7, 2009

Did you hear?...Economy negatively affecting vacation plans but silver lining for outdoor

According to a recent BIGresearch American Pulse Survey, conducted in April 2009, just under 59 percent of Americans say the economy has affected their vacation plans this summer. Many are making changes to their travel behaviors this summer, the survey indicated. Most frequently cited as a cost-cutting measure was reducing the number of days spent in a hotel (30.5 percent), while cutting back on the quality of a hotel registered just over 20 percent. Just over 27 percent said that the solution to save money on travel was to look for a local getaway that did not require long drives or air travel.

The survey question asked, "As a way of coping with the current economic environment, are you making any of the following changes to your vacation travel behaviors?" The survey had 4,023 respondents.

BIGresearch's blog provides a bit more insight and reason for optimism for the outdoor community. One response stated, "My husband and I are trying to regain money we lost in the stock market, so we definitely will not be going on vacation. We plan to take a few days for hiking in the Smokies where we live." Another stated, "The only vacation plan I have will be a picnic at the local park!" Yet another responded, "We are hoping to plan a camping trip to the UP of MI sometime, but that is as far as we are going to get unless the economy picks up."

Tuesday, March 31, 2009

RETAIL - HOW TO COUNTER THE EFFECTS OF THE ECONOMY: DELIVER REAL

I pick up my pro form BD Havoc's and Revelation backpack - a sweet setup for next season, but I still need a pair of DynaFit bindings - light and fast. Next season??!! This season is unbelievable - late March/Early April and it is dumping!!!!
Picking up my gear, I meet with Kurli, a rep for BD and we talk about the current state of the economy - his optimisim, love for life, passion for the industry, his company is uplifting.
He mentions, REAL. I am awed as I read this article this morning - Marty Weening from Gramicci, talking about "delivering real"
Must be the snow!
Be environmentally Cool,
Head Local and Local Artist

Wednesday, March 25, 2009

Retail - Trading Down Phenomena has Outdoor Retailers Shopping Lower Price Points

Some outdoor specialty retailers are beginning to follow their customers down market. “I think people are scaling back on the number of $400 shells they are bringing in and buying more $100 shells,” said Dave Matz, president of Grassroots Outdoor Alliance. “There is a movement to bring in a lower price point.”

While fashion and luxury brands are much more vulnerable to the trend, average retail prices have declined in specialty outdoor channels thanks to a surge in sales of carry over product and a rise in sales of accessories, according to retail sales data for January released last week by Outdoor Industry Association (OIA) and Snowsports Industries America (SIA). SIA reported that while consumers snapped up accessories like hats, gloves, goggles, wax, parkas, fleece tops, sweaters and winter boots, they backed away from buying skis, boots, boards, and bindings.

In outdoor channels, the share of product sold in the fourth quarter that was priced under $25 grew to 17.5% in 2008 from 16.7% in 2007 and 16.0% in 2006, according to data compiled by Leisure Trends Group for the OIA Outdoor Topline Report. The share of product priced over $100, meanwhile, fell to 38.0% from 40.0% and 39.1% respectively. The trend became more pronounced in January, when sales of sub-$25 product grew to 22.7% of total outdoor sales from 18.7% in the same month a year earlier. Sales of $100-plus product fell to 33.0% of total sales from 38.0% a year earlier. The share of footwear sales priced under $25 nearly doubled to the 10% range.

While analysts warn against reading too much into January sales figures, consumer surveys are detecting the shift down market, particularly in apparel. In one survey published last month, 90.7% of Americans designated specialty shopping for apparel as expendable.

Even specialty retailers catering to a more affluent clientele are introducing lower price points. Their thinking is a shift in consumer buying habits toward value and will continue long after the recession ends. In Charlotte, NC, Jesse Brown’s Outdoors is bringing Columbia Sportswear apparel back into their shop for the first time in years. Owner Bill Bartee stopped buying Columbia years ago after deciding his future lay with brands not carried by big-box retailers. With consumer anxiety over the economy rising, Bartee will add product from Columbia’s PFG and Titanium lines to complement his assortment of Arc’teryx, Ex Officio, Patagonia, Mountain Hardwear and The North Face.

“We will still sell $500 Gore-Tex shells,” said Bartee, “But we will sell less of them. Columbia will bring a price-point to Jesse Brown’s that to a large extent is not available right now. We anticipate a backlash against luxury.”

Some retailers see the recession accelerating a long-term trend away from brand loyalty that was already being driven by the millennial generation (born 1978 - 2001). That generation is much less inclined to define themselves by conspicuous consumption of specific brands, said Ted Manning, VP of merchandising for Eastern Mountain Sports (EMS).

“The customer is coming back to the concept of minimalism and core functionality and not excess,” said Manning, “There will be less brand loyalty.”

Still, national brands will continue to play a major role at EMS, which continues to grow its own brand of apparel. “We have not headed into recession by throwing out national brands,” Manning said.

Below are examples of how retailers are adapting to consumers’ new frugality:

Loading up on basics and accessories that are priced below $25.

Shifting down within a brand. Rather than cut premium brands, buyers are bringing in more of their entry-level product. The good-better-best mix is shifting more toward better.

Bundling product on the equipment side to lower the cost of entry for your core sports. For instance, bundle a boat, PFD and paddle to show entry-level paddlers how inexpensively they can getting into paddle sports.

Bringing in new brands. Specialty retailers are giving more widely distributed value brands another look.

Expanding and/or promoting private label offerings.

Buying overstock and close-out deals. Many retailers who cut back their pre-season orders are aggressively buying overstock and closeouts to ensure a steady flow of deals.

Wednesday, February 11, 2009

Credit Crunch Catching up With Outdoor Industry

While the recession started 14 months ago, only in the last three months does the credit crunch seem to have caught up with the outdoor industry. The most recent Outdoor Industry Association (OIA) Topline Report shows sales at core outdoor specialty stores dropped off 8 percent and 10 percent respectively in November and December after chugging along at an 8 percent growth rate in the first ten months of the year. While dollars sales rose 7 percent in the chain channel in December, the rise was due primarily to sales of lower ticket items and earlier than normal discounting. That has forced some sporting goods brands and chains to write down the value of inventory. Publicly traded companies in our industry are exploring “strategic alternatives” after defaulting on loan covenants. Discounting, meanwhile, seems destined to lower margins all around for the foreseeable future.

Under these circumstances, it’s not hard to imagine vendors and lenders tightening the reins on outdoor brands and specialty retailers. Even companies that have avoided debt could find themselves vulnerable if they’ve been slow to pay their suppliers. In the fourth quarter, many brands in the cycling industry stopped extending credit to their slowest paying dealers, reports retail consultant Jay Townley. First to go were those more than 90 days out. Then those who could not pay within 60 days were cut off. Thirty days could be next. Entrepreneurs using unsecured credit cards to get through slow months or periods of peak spending are being cut off with little warnings.

The result is that some small businesses are being forced into the credit markets at a particularly difficult time. Companies that do have banking relationships, meanwhile, are finding their bankers unwilling to loan as much against inventory, receivables, real estate and other assets.

The message for outdoor companies is – as President Obama noted in his February 9 press conference – “The credit crisis is real and it’s not over.” The flip side of that is that there is still time to get in front of it and there are plenty of banks – particularly community and regional banks – still lending money. With that in mind, OIA WebNews interviewed an array of consultants and bankers for advice on what retailers can and should do now to secure access to credit. Here are some of their tips:

Assume you will be affected. Operate on the assumption that you will need credit and that it will become more difficult, expensive and time consuming to obtain. Don’t wait until the last minute to investigate alternatives.

Establish a banking relationship. If you are relying on a credit card or internal funds to finance your business, you need to establish a banking relationship now.

If you’re a retailer, get to know the accounting module in your POS system. To mitigate their risk, banks are demanding weekly and even daily cash flow statements. If you don’t know how to do produce one, arrange a training session with your POS vendor.

GMROI analysis. Townley urges retailers to conduct GMROI analysis on as many SKUs as possible. Calculating “gross margin return on investment” reveals your most profitable products. By eliminating less profitable SKUs, you can free up cash, thereby enhancing your appeal to prospective lenders and increasing your leverage with the remaining vendors.

Learn the language. Bone up on your financial vocabulary and the key ratios bankers use. This tutorial from the Small Business Administration is a good place to start. If you are a retailer, attend today’s free Introduction to Financial Management Webinar at 2:00 p.m. (MST) to learn about the financial measurements you need to understand to make your business more profitable. It’s one of several programs OIA is launching this year to help outdoor retailers enhance their performance in 2009 and beyond. To see more resources for retailers, click here.

Tuesday, February 3, 2009

Global environmental standard bluesign now on speedy growth track

A year ago, bluesign's CEO Peter Waeber held a press conference at the ispo trade show in Munich, Germany, with a smattering of curious journalists in the room who had never heard of his company.

bluesign, he patiently explained while flanked by representatives from MEC and two suppliers, is a Swiss company dedicated to addressing health and safety atrocities throughout the entire textile manufacturing and selling chain. He has been establishing its plan and making industry contacts at bluesign since 2000, a demonstration of his trademark Swiss patience, thoroughness and, in this case, confidence.

"It's a slow process," he told SNEWS® at that time. Waeber knew bluesign's time was coming.

"I have a vision and a mission," he said. "We had a vision to bring something easier to the market…. I know we can do it in a better way; however, it's not easy to motivate the chemical industry."

Time is now
Twelve months later, bluesign's time has come. Companies are being motivated, difficult or not. bluesign has more than quadrupled its membership, albeit still only 10 brands; had a 50-percent stake in the company acquired in July 2008 by Swiss SGS (www.sgs.com), a 200-year-old inspection, verification, testing and certification company; and the "bluefinder," a database for its members of processes and chemicals, will be relaunched by March 2009.

But with no time to rest, Waeber trots the globe to push membership and support. He prowled the aisles at Outdoor Retailer Winter Market in January 2009, moving from meeting to meeting, and he received a Top 25 honor as a 2009 SNEWS Power Player (Click here to see his interview and photo in a Jan. 19, 2009, SNEWS story.) Always understated, Waeber paused a moment at the show to show an edge of a smile about the award, but quickly moved on to his next meeting -- and to continue work on bluesign's future that could change the world's environment.

"We have a lot of projects," he told SNEWS. "The companies that are now members realize and they also know sustainability isn't happening overnight.

"But it's happening," he said. "We can talk and talk and talk, but now we have to take action. I'm not pessimistic at all."

All action, not just talk
bluesign (www.bluesign.com), which Waeber spells using a lower case "b," tackles the problem of environmentally unfriendly manufacturing at its root, from air emission and waste water to chemical processes and components, using systems only a long-time textile scientist like Waeber -- but one with an environmental passion -- could create. Waeber is also a chemist and outdoor enthusiast who has studied economics. He has worked at various textile mills and, before starting bluesign, was the technical director and a member of the board at Schoeller Textil AG, also in Switzerland, where the concept was born.

Said Jeff Crook, product manager at MEC, who participated in the conference at ispo a year ago, "They're focused on solutions."

"The foundation of the system is economically sustainable," Crook said. "It has to be economically sustainable for everybody in the production chain."

Another participant, Roger Yeh, president of Everest Textile of Taiwan, put it more simply, "I trust Peter."
How it works
According to the company, the bluesign standard's five principles are:
>> resource productivity
>> consumer safety>> air emission
>> water emission
>> occupational health and safety

This "gives suppliers, manufacturers, retailers, brands and consumers the good feeling of having done everything possible for the environment, health and safety," a company statement said.

There are various components -- all rather precise albeit a bit complicated -- designed to link closely the manufacturing and selling chain, create buy-in from all sides, and give each a tool to find out more to operate in an environmentally friendlier way while also being more transparent and gaining more knowledge about others in the chain.

First, there are three levels of participants:
>> Supporters are companies from the chemical and machine industry.
>> Partners are mills, manufacturers and converters.
>> Members (also known as users) are brands and retailers.

The most recent members are REI, which announced its membership on Jan. 20 and Deuter on Jan. 31. Others include Patagonia and MEC, both of which were the first, joining in May 2007; The North Face, Vaude, Helly Hansen, Hagloefs, Eileen Fisher and Boardroom/Eco Apparel.

Then, there are three systems provided by bluesign for information and transparency:
>> bluetool, a source of information for the chemical industry.
>> bluefinder, the guide for manufacturers to source better materials and mills.
>> blueguide, still in development, a tool for all member brands and retailers to help them choose better environmental sources.

Only a year away from celebrating its 10th anniversary, bluesign has goals, big goals, for the year, including 100 percent growth and opening a hub in Hong Kong. Waeber and his small team will collect a lot of frequent flyer miles to get there since partners, supporters and members don't just sign papers to join. bluesign, with a vision that reads "one world -- one standard," must in fact do lengthy inspections and analysis on-site at each potential partner and supporter, a process which can take up to a year, he said. When completed, the applicants get a thick report with recommendations for changes and a list of bad components or methods (black), a list of mediocre ones (gray) and a list of good ones (blue). Being a bluesign participant doesn't necessarily mean your company is perfect since the fact-finding systems (finder or guide) show what part of a supplier is good and what is not so good, literally grading the firm like a report card.

"It's a process," he said.

There is no way around this kind of detail because, as Waeber told SNEWS, "It would get around if it were bull."

With most of the world calling these types of practices "green," Waeber went with blue. He said blue is a more holistic color -- think of the blue sky and the blue sea, he said."

Green washing is not what we are all about," Waeber said. "We want to bring solutions on the table."

--Therese IknoianSNEWS® View: Certainly, bluesign is a business since companies pay for the report cards and screening, but in the end the process is obsessively detailed and will give all segments of the supply chain better information when they make choices. Although addressing the textile chain, such an organization -- if not different divisions of bluesign in the future -- could certainly address other segments, from hardgoods such as stoves to the likes of fitness equipment -- the manufacturing to pour steel and form plastics can't be great for our environment. With the forward-thinking and long-term thinking, bluesign could be paving the way for a more environmentally sound planet for our children and their children. --SNEWS® Editors

Monday, February 2, 2009

Americans Believe Green Investing is Poised for a 'Golden Age': Survey

NEW YORK, N.Y. -- Heightened support from the Obama Administration and the new Congress on environmental issues, strong green elements in the proposed stimulus and anticipated regulatory changes are fueling optimism for green investment, according to Allianz Global Investors.

That's the assessment of results from the latest survey of American investors for the asset management firm, which says Amercians see a "golden age" coming for green investing.

In addition to expecting broad policy change from Washington, D.C., investors are increasingly perceiving firms that seek to address environmental issues as strong investment opportunities, the company said.

"The need for pollution control, clean water and energy efficiency is not going away," Brian Gaffney, managing director and CEO of Allianz Global Investors Distributors, said in a statement. "Investors perceive there is real opportunity here and they want to capitalize on it."

Gaffney said investors' positive outlook on the environmental technology sector reflects their perception of the area as a long-term opportunity. "Investors understand that robust demand for innovation and solutions will fuel growth, and consequently profits, for years to come," he said.

The survey found:

• 78 percent of investors believe that the Obama Administration in its first year will produce more policy promoting business investment in the environment than the Bush Administration produced during its entire tenure
• 74 percent believe that the new Congress will more strongly support policy promoting business investment in environmental technology
• 97 percent believe that exploring alternative fuel sources remains important despite declining gas prices
• 91 percent believe that resolving environmental problems will be a major issue for years• 69 percent consider it important to look at investing in companies that capitalize on addressing those problems.
• 78 percent say environmental technology has the potential to be the "next great American industry," and 64 percent considered the sector to be the "most desirable" investment opportunity among 10 categories surveyed
• 72 percent contend that plunging stock prices have had no effect on their inclination to invest in environmental stocks• 48 percent say they are "at least somewhat likely" to invest in environmental companies this year
• 22 percent in 2008 made investments in firms capitalizing in environmental trends compared to the 17 percent who reported doing so in 2007

The survey also found that 52 percent believe the Dow Jones Industrial Average will be higher a year from now than it is today. And 58 percent of the respondents said they think Europe is ahead of the U.S. in trying to tackle the problems — an aspect that could spur investors' interests in American firms engaged in environmental issues.

The survey polled 1,264 adults from December 12 to 19, 2008. GfK Roper Public Affairs & Media, a division of GfK Custom Research North America, conducted the survey over the Internet for Allianz Global Investors.

Participants were required to be at least 25 years old and have primary or shared responsibility for investment decisions in households with financial assets of at least $100,000. The survey conducted December 14-20, 2007 tallied responses from 1,003 completed interviews.

New Tool Devised to Measure Corporate Water Footprint

THETFORD CENTER, Vt. -- The nonprofit Center for Sustainable Innovation has come up with a resource that enables companies to measure their water footprint.

The tool called the "Corporate Water Gauge" is valuable, its creators say, because it takes into account corporate water consumption as well as the impact of usage on water supplies, the population sharing them, the geographic location, topography and watershed boundaries.

The tool is the result of a three-year research and development effort to "make triple bottom line measurement and reporting a reality," said CSI's Executive Director Mark W. McElroy.

"Given the increasing urgency of conserving and carefully managing rapidly declining freshwater resources on Earth, this is a management tool whose time has come."

Businesses can use the resource to assess water consumption and its environmental and social effects at a single facility, at all corporate sites or any subset of them, according to the center. The tool uses "sustainability quotients" to take measurements. More details are available here.

The Center for Sustainable Innovation, founded in 2004, works to develop advanced approaches for measuring and reporting the social and environmental sustainability performance of organizations. The center also devises tools and methods to enable triple bottom line management.

Wednesday, January 28, 2009

Increasing Diversity in Outdoor Recreation Presents Significant Opportunity for Outdoor Businesses

Key findings in the recently released 2008 Outdoor Recreation Participation Report suggest significant opportunities exist for increasing participation in outdoor recreation among Hispanics and African Americans. The findings – covering the trends and motivations of diverse participants and non-participants – are critical for outdoor industry companies working to engage growing numbers of outdoor enthusiasts and non-profits nationwide working to connect youth and the outdoors.

Perhaps the most interesting finding in the report is that, although the participation rate in outdoor activities is lower among Hispanics and African Americans than Caucasians, those who do participate get outside more frequently than Caucasians. This encouraging news emphasizes the significance of the opportunity diverse groups offer the outdoor industry.

Other highlights from the report include:

Participation in outdoor activities is highest among Caucasians for all age groups. Participation is lowest among African Americans. Participation among African American youth is markedly lower than Caucasian, Hispanic and Asian/Pacific Islander youth, and the consequences of this are evident in participation rates throughout adulthood.

When youth are asked what motivated them to start participating in outdoor activities, youth ages 6 to 17 of all major ethnicities cite parents, family, relatives and friends as the top motivations. Parents are the leading motivator for all groups, although parents are cited more often by Caucasians (74%) than Hispanics (59%), African Americans (59%) and Asians/Pacific Islanders (65%).

School programs are the fourth most common motivation for youth of all four ethnicities and cited most often by African American youth and Asian/Pacific Islander youth.

When youth participants ages 6 to 17 of all ethnicities are asked why they choose outdoor activities, they cite “fun” most often by a large margin.

Hispanic and African American youth cite a lack of access to places to enjoy outdoor activities in greater numbers than Caucasian and Asian/Pacific Islander youth.
In the coming years, the United States will become a majority minority population, and more than 85% of the population will live in urban communities. The insights in the 2008 Outdoor Recreation Participation Report will help businesses and organizations nationwide connect Americans and the outdoors, reverse the inactivity and obesity crisis and ensure future generations conservationists.

Monday, January 26, 2009

Did you hear?...Research says sporting goods up for a retail battle, consumers becoming practical

A recent research briefing noted that retail is up for a "big battle" at sporting goods in 2009, while many consumers are looking to become more practical in their spending habits.

Although focused mostly on sporting goods and mass, BIGresearch found that Wal-Mart barely edged out Dick's for the top spot and both are increasing their customer share. Dick's, however, has more followers among male shoppers. Click here to see a BIG Retail Ratings Report.

In its monthly "Consumer Intentions & Actions Survey," BIGresearch (www.bigresearch.com) found that Home Depot and Lowe's continue to hammer in the home improvement category (and we at SNEWS® know that both have toyed with stepping outside the home category into sporting goods and exercise equipment).

More than one of every two shoppers (57.3 percent, per the research) said they've become more practical and realistic in shopping and spending, up from 49.8 percent in December and up from 41.2 percent a year ago. Most are also saying they are more budget-conscious (53.4 percent up from 39 percent).

For the future, research revealed that more say they will spend less in the next 90 days than will spend more. Sporting goods' prognosis is flat over a month ago after showing down over a year ago. But that's not unusual: Per BIG, all categories are showing a down prognosis over a year ago. Showing "up" over a month ago were women's dress, shoes, home improvement, and lawn and garden.

What's hot? BIG's research showed physical exercise was on the list as "hot" -- right along with Jennifer Aniston and iPhones.

Obama’s First Bill Signing Will be a Big Win for Public Lands

The outdoor industry is likely to get an initial big win early in this Congress as one of the first bills President Obama will sign into law is the massive public lands package headed for his desk.

The legislation (S. 22) is a big win for the recreation and conservation community as it includes permanent recognition for the Bureau of Land Management’s National Landscape Conservation System. The NLCS encompasses 26 million acres containing the iconic desert landscapes of the western U.S. More than one-third of all recreational visits occur on these lands.

The bill's other provisions are equally as important as they will create 2.2 million acres of wilderness, designate three new national parks, designate several national trails, designate more than 1,000 miles of wild and scenic rivers and designate 10 national heritage areas.

  • The three new national park units would make the birthplace of President Bill Clinton in Hope, Arkansas, a National Historic Site; it would create River Raisin National Battlefield Park in Michigan on sites related to the War of 1812; and it would establish a national historical park around the water power system at Passaic Great Falls in New Jersey to recognize and preserve Alexander Hamilton's breakthroughs in industrial production.

The 15 different proposals for new or expanded wilderness areas are the largest expansion of the National Wilderness Preservation System since 1994. New wilderness includes:

  • 517,000 acres in the Owyhee-Bruneau Canyonlands of southwestern Idaho.
  • In Utah, more than 260,000 acres of land will receive wilderness designation and 166 miles of the Virgin River will receive wild and scenic status. The bill would also create two National Conservation Areas in Washington County, resulting in recreational opportunities on 140,000 acres.
  • 130,000 acres surrounding Oregon's Mount Hood will receive wilderness designation.

Finally, the bill will withdraw 1.2 million acres of the Bridger Teton National Forest south of Jackson Hole from future oil and gas leasing.

Youth Participation Findings in 2008 Outdoor Recreation Participation Report

Last week, The Outdoor Foundation released the 2008 Outdoor Recreation Participation Report, the only detailed study of its kind tracking American participation trends in outdoor recreation. The findings revealed that participation in outdoor activities is rising overall, but disturbingly, participation among children is declining significantly.

The report – based on an on-line survey capturing responses from over 60,000 Americans ages six and older and covering 114 different outdoor activities – examines trends in the extent and frequency of youth participation in outdoor activities and reports on the motivations of youth participants and non-participants.

The most concerning finding of the report reveals that participation among youth ages 6 to 17 dropped over 11% in 2007. The drop was sharpest among youth ages 6 to 12, particularly girls age 6 to 12 whose participation fell from 77% to 61%.

In an age of extreme video games, online social networks, infinite television options and rising obesity rates, connecting youth with the healthy active outdoor lifestyle is critical. The decline in youth participation in outdoor recreation highlights the importance of nationwide efforts to understand and reverse the growing inactivity crisis among youth and the growing disconnect between youth and the outdoors. The insights detailed in the 2008 Outdoor Recreation Participation Report are critical to these efforts.

Findings in the 2008 Outdoor Recreation Participation Report specific to youth include:

Participation among youth ages 6 to 17 dropped over 11% in 2007.

Participation among boys and girls age 6-12 experienced the sharpest drop. Girls had the biggest decline falling from 77% to 61%. Boys fell from 79% to 72%.

Most youth are introduced to outdoor activities by parents, friends, family, and relatives.

For youth, "fun" is by far the most common motivation for participating in outdoor activities. Other motivators include discovery, exploration, new experiences, and exercise.

Youth of all ages who do not participate in outdoor activities cite a lack of interest as their primary reason. Lack of interest is followed by a lack of time, competition from other responsibilities (primarily schoolwork) and a preference for screen media such as TV, computers and video games.

Friday, January 9, 2009

November Outdoor Sales Slow, Accessories Remain Bright Spot

The difficult economic situation slowed outdoor industry sales in November, according to the most recent edition of The OIA Outdoor Topline Report.

The day after Thanksgiving has long been the traditional kick-off of the Holiday shopping season. This year, Black Friday occurred on November 28, leaving only three big shopping days in November. Black Monday, traditionally the biggest day for Internet deals and sales, occurred on December 1, removing those online sales from November altogether. It remains to be seen how much of a boost Black Monday sales will give December, but the timing could only hurt November’s tally. Last year, Black Friday fell on November 23 and Black Monday fell on November 26.

November Sales
In monthly sales, retail sales for all core outdoor stores (chain, internet, specialty)* fell 11% in dollars ($407,383,909) compared to November 2007 ($458,334,314), the first month of overall dollar sales decline since the recession started in December 2007. All three store channels and all four major product categories (equipment, equipment accessories, apparel and footwear) declined in November.

Internet sales saw their first month of negative sales growth since the OIA Topline began tracking online sales in 2005. The channel declined 7% in overall dollars compared to November 2007. All four major product categories slid in November. Core outdoor chain stores lost 19% in overall dollar sales compared to November 2007, with declines coming from all four product categories. Specialty stores fell 8% from last November, as all four major product categories suffered losses.

All paddle product sales from all three channels (specialty, chain, and internet) fell 16% in units and 19% in dollars with retail prices dropping 4%. All three store channels declined in November, suffering across-the-board losses compared to November 2007. However, November is a very small month for paddlesport sales, accounting for less than 3% of each year’s total. Year to date, overall dollar sales were down just 2%.

Several bright spots emerged in November. Looking at all three channels, small items such as water bottles, headwear and handwear increased sales. Winter boots also fared well; the category grew 6% compared to last November.

November sales account for about 9% of a typical year’s total dollars. This November’s declines were not enough to affect the entire year. Year-to-date, all three channels together were up 5% in total unit sales and 6% in dollar sales. In YTD dollars, all equipment increased 8%, equipment accessories 10%, apparel 5% and footwear 4%. All three store channels’ YTD dollar sales remained in the black through the end of November.

Wednesday, January 7, 2009

NAKED SKIER AT VAIL

PICTURE OF THE DAY


Economic Stimulus Plan may Include

President-elect Barack Obama and congressional leadership have begun to develop the framework for an economic stimulus package. OIA has submitted, along with a diverse coalition of recreation partners, our recommendations on how to put Americans to work, revitalize the economy and invest in recreational infrastructure.

Congressional leaders hope the package will be ready to sign by the new president right after the inauguration. However with the ballooning cost of the package it may be difficult to pass it through both the House and the Senate as quickly as some have predicted.

The rumors around Washington now put the bill in the $850 billion range, which is larger than the recent financial bailout. Most of the money is earmarked for struggling state governments, transportation infrastructure projects which translate into jobs and federal investment in new energy alternatives. With that much money on the table, nearly every group in Washington has been sending their wish list up to Capitol Hill and the president’s transition team.

OIA sent our request directly to Speaker Pelosi and Majority Leader Reid outlining the specific details which includes $125 million for the Land and Water Conservation Fund (LWCF) State Assistance program and $100 million for the Urban Park and Recreation Recovery (UPARR) program. These programs will invest in local communities and give them the necessary resources to preserve, maintain and rehabilitate local recreation infrastructure.

Wednesday, December 17, 2008

PRESS RELEASE - Locals Have More Fun debuts at OR Winter Show

Locals Have More Fun debuts at OR Winter Show

For Immediate Release

Brian Kahn
www.localshavemorefun.com
brian@localshavemorefun.com
435-659-6217

Park City, UT, December 3rd, 2008 —

WHEN and WHERE: Jan 22-25 - Winter Outdoor Retailer Show at the Salt Palace Convention Center, Booth BR 724

WHAT: Locals and Visitors alike in Resort and Destination Towns are already identifying with that "Locals Lifestyle".

Locals Have More Fun depicts the locals lifestyle and provides a high quality, environmentally cool souvenir for resort town locals and tourists.

To learn more about Locals Have More Fun and to see their current products, visit the website
www.localshavemorefun.com

PRESS RELEASE - Locals Have More Fun - ORWM Carbon Neutral Cup Giveaway

For Immediate Release
Brian Kahn
brian@localshavemorefun.com

Salt Lake City UT, December 17th, 2008 —

Locals Have More Fun, located at booth BR 724 will give away biodegradable cups to be used at "happy hour" during the 4 day show.

The giveaway will occur Friday, Saturday, and Sunday at 1:30pm.Each cup is printed with "100 Tons = 200 Trees" as Locals offset 100 tons of CO2 while satifsfying its 1% For the Planet donation.

Brian Kahn, owner of Locals Have More Fun worked with Jeff Olson of the National Forest Foundation to learn about carbon offsets and develop a unique dual marketing program. The National Forest Foundation will be handing out material during the 4 day show at the Locals Have More Fun Booth.

Mr. Kahn thought hard how his new company could deliver the "green message" while doing something totally unique.

"It will be environmentally cool to see OR attendees walking around with our cups and knowing that each one represents a tree planted."

ABOUT LOCALS HAVE MORE FUN

Locals Have More Fun is a Park City based lifestyle line that depicts the locals lifestyle on sustainable materials. The line is geared to be cool enough for locals, yet seen as an environmentally cool souvenir for the tourist market.

Locals Have More Fun is a 1% For the Planet member and is proud to protect the places that locals live and play.

To contact Locals Have More Fun, please visit
www.localshavemorefun.com
brian@localshavemorefun.com
435-659-6217