SIA: Snow sports sales down five percent

According to SportsOneSource.com, SnowSports Industries America (SIA) reported today that the “cautious mood” seen in suppliers, retailers and consumers this season was brought on by fear about economic security. The report went on to say that the impact of the economic downturn on the snow sports market was unprecedented compared to past, less significant economic events, which had little effect on the industry.

SIA cites significant reductions in wealth and job security even amongst the highest income demographics as being a leading cause for the changes in consumer spending. 

“The peculiarities of this recession resulted in strangled credit markets, higher costs and reduced sales in the snow sports market that had significant negative impacts on both retailers and suppliers,” read the report.

The report also said that retailers are not planning on increased sales for next season either, as early pre-season orders remain down. The organization anticipates that, given the current climate, some retailers and brands will consolidate. 

“We saw some growth in our sales this season but we’re having some trouble with past due receivables and pre-season orders are smaller than usual. We are planning on some mid-season orders next season if snowfall is good,” Ben Anderson, Founder, Icelantic Boards told SportsOneSource.

According to the report, in the 2008/2009 season the snow sports market sales declined 5% in dollars and 3% in units. Overall sales went down to $2.82 billion compared to last season’s $2.95 billion. New equipment sales suffered the most, 75,000 fewer alpine skis, 8,000 fewer Nordic skis, and 34,000 fewer snowboards sold this season. In an effort to bring in customers, retailers drastically reduced prices on carryover items, which sold well.

“Overall, we did great on selling stuff; we just didn’t make enough money on it. Some retailers over bought, then panicked and put stuff on sale early. That was one of the problems. In March, we just ran out of customers. We did do well with selling median priced items like Burton and Rome boards, boots and bindings,” said Bill Langlands, Owner, Darkside Snowboards.

Current equipment sales went down 12% from last year and by March 31, inventories of unsold equipment had gone up by almost 19% in dollars and 12% in units compared to last year’s numbers.

Apparel unit sales increased by 2% while dollar sales decreased almost 6% this season, illustrating retailers’ pricing scheme. Accessories sales were close to last year’s numbers.

“If there was a bright spot in this difficult season it was the Internet channel, it broadened while Specialty shop and chain store sales declined significantly,” said the report.

According to SportsOneSource.com, SnowSports Industries America (SIA) reported today that the “cautious mood” seen in suppliers, retailers and consumers this season was brought on by fear about economic security. The report went on to say that the impact of the economic downturn on the snow sports market was unprecedented compared to past, less significant economic events, which had little effect on the industry.

SIA cites significant reductions in wealth and job security even amongst the highest income demographics as being a leading cause for the changes in consumer spending. 

“The peculiarities of this recession resulted in strangled credit markets, higher costs and reduced sales in the snow sports market that had significant negative impacts on both retailers and suppliers,” read the report.

The report also said that retailers are not planning on increased sales for next season either, as early pre-season orders remain down. The organization anticipates that, given the current climate, some retailers and brands will consolidate. 

“We saw some growth in our sales this season but we’re having some trouble with past due receivables and pre-season orders are smaller than usual. We are planning on some mid-season orders next season if snowfall is good,” Ben Anderson, Founder, Icelantic Boards told SportsOneSource.

According to the report, in the 2008/2009 season the snow sports market sales declined 5% in dollars and 3% in units. Overall sales went down to $2.82 billion compared to last season’s $2.95 billion. New equipment sales suffered the most, 75,000 fewer alpine skis, 8,000 fewer Nordic skis, and 34,000 fewer snowboards sold this season. In an effort to bring in customers, retailers drastically reduced prices on carryover items, which sold well.

“Overall, we did great on selling stuff; we just didn’t make enough money on it. Some retailers over bought, then panicked and put stuff on sale early. That was one of the problems. In March, we just ran out of customers. We did do well with selling median priced items like Burton and Rome boards, boots and bindings,” said Bill Langlands, Owner, Darkside Snowboards.

Current equipment sales went down 12% from last year and by March 31, inventories of unsold equipment had gone up by almost 19% in dollars and 12% in units compared to last year’s numbers.

Apparel unit sales increased by 2% while dollar sales decreased almost 6% this season, illustrating retailers’ pricing scheme. Accessories sales were close to last year’s numbers.

“If there was a bright spot in this difficult season it was the Internet channel, it broadened while Specialty shop and chain store sales declined significantly,” said the report.