sgb weekly 1235
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SGB Weekly 1235TRANSCRIPT
AUGUST 27, 2012ISSUE 1235
The Weekly Digital Magazine for the Sporting Goods Industry
TURNS 50!A16
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AUGUST 27, 2012 | SGBWeekly.com 3
Copyright 2012 SportsOneSource, LLC. All rights reserved. The opinions expressed by writers and contributors to SGB WEEKLY are not necessarily those of the editors or publishers. SGB WEEKLY is not responsible for unsolicited manuscripts, photographs or artwork. Articles appearing in SGB WEEKLY may not be reproduced in whole or in part without the express permission of the publisher. SGB WEEKLY is published weekly by SportsOneSource, LLC, 2151 Hawkins Street, Suite 200, Charlotte, NC 28203; 704.987.3450. Send address changes to SGB WEEKLY , 2151 Hawkins Street, Suite 200, Charlotte, NC 28203; 704.987.3450
NEWS 4 BYTHENUMBERS CABELA'STo Open First Stores In Virginia and Delaware 6 BASSPROSHOPS Announces Plans For New Store In Atlantic City NIKEPriortizes Customer Safety, Sets New Rules
FEATURES
8 RETAILMUSTHAVES for the Holidayss 12 A16Celebrates 50 years DEPARTMENTS
18 CALENDAR
The Weekly Digital Magazine for the Sporting Goods Industry
AUGUST 27, 2012ISSUE 1235
12
ON THE COVER: John Mead, president Adventure 16, in Yosemite
Senior Business EditorThomas J. Ryan
Contributing EditorsAaron H. Bible, Fernando J. Delgado,
Charlie Lunan, Matt Powell
Creative DirectorTeresa Hartford
[email protected] (x105)
Graphic DesignersCamila Amortegui
[email protected] 704.987.3450 (x103)
Sebastian Restrepo [email protected]
Advertising Sales Account Manager / Northeast
201.887.5112
Advertising Sales Account Managers / Midwest
Barry Kingwill & Jim [email protected]@sportsonesource.com
847.537.9196
Advertising Sales Account Manager / Southeast
Katie O'[email protected]
828.244.3043
Circulation & [email protected]
Group PublisherEditor In ChiefJames Hartford
2151 Hawkins Street • Suite 200 • Charlotte • NC • 28203t. 704-987-3450 • f. 704-987-3455
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A16 president John Mead pumps up the crowd at this summer's Outdoor Retailer tradeshow, where the company's 50th anniversary celebration went through six kegs in 30 minutes and had all surrounding booths involved in the party.
BY THE NUMBERS
8%Hibbett Sports, Inc. raised its fiscal 2013 guidance af-ter reporting net sales for the second quarter ended July 28 increased 8.0 percent to $165.4 million, compared with $153.1 million for the comparable period last year. Net income for the quarter in-creased 32.9 percent to $7.9 million compared with $5.9 million for the 13-week period ended July 30, 2011. Comparable store sales increased 4.8 percent.
9.5%Li Ning Company, Ltd., owner of China’s most popular domestic sporting goods brand, reported profits plum-meted in the first half ended June 30 on a 9.5 percent decline in sales as sporting goods continued to back up in retail channels amid declining demand and rising dis-counts. The company reported revenues fell 9.5 percent to RMB3.88 billion ($613mm), while stating that it an-ticipates full year revenue for 2012 will further decline and that the company may post a loss attributable to equity holders for the year.
$210.3 MillionPacific Sunwear of California reported sales improved slightly in the second quarter, to $210.3 million versus net sales of $200.9 million for the second quarter of fiscal 2011. On a GAAP basis, the company reported a loss from continuing operations of $17.5 million, or 26 cents per share, for the second quarter, which was even with a loss from continuing operations of $17.5 million, or 26 cents, for the second quarter of fiscal 2011.
9.3%Shoe Carnival, Inc. reported that revenues were up 9.3 percent to $182.2 million for the second quarter, with comparable-store sales were ahead 3.0 percent. The company saw a slight increase in earnings in the second quarter, to $2.9 million from $2.7 million. Earnings were 14 cents a share for both Q2 in 2012 and the comparable quarter last year.
Cabela’s, Inc. announced it will open its first stores in Virginia and Delaware in 2014, with construction expected to commence on both stores next year. The stores will be opened in Bristol, VA and Christiana, DE.
The 85,000-square-foot Bristol, VA store will anchor The Falls, a 1.5-million-square-foot development in Bristol close to Interstate 81’s Exit 5 along Lee Highway. The location will feature Cabela’s trademark style with an exterior of log construction, stonework, wood siding and metal roofing. Customers will be able to view much of the store’s interior as they approach the building due to large glass storefronts, while the interior itself will highlight Cabela’s next-generation layout, which is designed to maximize product assortment and availability.
“Cabela’s has a deep customer base not only in and around Bristol but across the region, people who share our passion for the great outdoors,” said Tommy Millner, Cabela’s chief executive officer. “These outdoorsmen and women have supported Cabela’s for a long time, shopped with us via our catalog and online, so it was time to bring them the unique Cabela’s retail experience.”
The Bristol community has welcomed the news of the store opening. “We are proud that Cabela’s has chosen Bristol as their first location in Virginia,” said Bristol Mayor Jim Steele. “The unique style of their retail locations parallels the natural beauty of Virginia. This, coupled with Cabela’s commitment to providing exceptional experiences for the outdoor enthusiast, makes The Falls a perfect location for a shopping stopover for locals and those traveling to Bristol.”
Cabela's will also begin construction next year on a 110,000-square-foot store in Christiana, DE. The store will be located at Christiana Mall, which also includes Nordstrom, Target, Macy’s and JCPenny, among other businesses.
Cabela’s currently operates 38 stores across the United States and Canada. The company will open stores this year in Rogers, AR, and Union Gap, WA, on August 30 and October 4, respectively. The specialty retailer has also announced plans to open seven stores in 2013 – Saginaw, MI; Columbus, OH; Grandville, MI; Louisville, KY; Green Bay, WI; Thornton, CO; and Lone Tree, CO. In 2014, a store opening is planned in Anchorage, AK.
CABELA’S TO OPEN FIRST STORES IN VIRGINIA AND DELAWARE
4 SGBWeekly.com | AUGUST 27, 2012
NEWS
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NIKE PRIORTIZES CUSTOMER SAFETY, SETS NEW RULES
The Wall Street Journal reported that Nike has instituted new rules for retailers related to launches of new shoes. The move comes in anticipation of the release of the new Lebron X Nike Plus basketball shoe, with embedded motion technology and an MRP of $315, the company’s first $300-plus basketball shoe.
One of the biggest changes is the end of midnight shoe releases, which has led in the past to store stampedes and problems with people camping out. According to reports, Nike retailers will not be allowed to pre-sell or take reservations for new shoes either. The Journal also reported from a Nike company memo that store chains are now banned from displaying new product descriptions and photos ahead of company launch dates.
Nike is the world’s largest sportswear maker, according to the Chicago Tribune, and is raising prices to account for increasing costs of goods sold. The Journal quoted Nike memos as saying, “If a retailer offers Nike products for sale under circumstances where the retailer knows or should know that consumer response is likely to be exceptionally high, it must do so in a prudent and responsible way. Retailers should assess what measures are necessary to secure the store and ensure the safety of personnel and consumers."
While violence surrounding Nike shoe launches is nothing new, recent surges such as last February’s Foot Locker cancellation of the Nike Air Foamposite ($220) release due to violence at a Florida mall, and last December’s outbreak in Seattle over the Retro Air Jordan XI Concord ($180), apparently prompted the company to act. Social media and secondary online markets were pointed to as part of the growing crowds at shoe releases, as well as Nike’s controversial strategy of limited-run releases. Nike now has its own online reservation system.
BASS PRO SHOPS ANNOUNCES PLANS FOR NEW STORE IN ATLANTIC CITY
Bass Pro Shops will be arriving in Atlantic City, NJ, as the retailer has reached an agreement to be a part of The Cordish Companies Phase IV development of The Walk in Atlantic City.
The new Bass Pro Shops outdoor super store will be located directly on Atlantic Avenue at the entrance to Atlantic City, which welcomes over 33 million visitors a year.
“We are very grateful for the opportunity to once again partner with Blake Cordish and the Cordish Company, this time to bring Bass Pro Shops to Atlantic City and be a part of one of the most dynamic, leading edge retail developments in America,” stated Johnny Morris, founder of Bass Pro Shops. “We are honored to join all of the other leading brand retailers that Blake Cordish has put together and it is even more exciting that almost all of them have introduced new cutting edge concept stores.”
Morris added that the store “will be an excellent fit” with the Casino Reinvestment Development Authority’s (CRDA) “vision of attracting even more visitors to Atlantic City.”
“This will be a home run for Bass Pro Shops and for Atlantic City,” stated John Palmieri, CRDA executive director. “Governor Christie created the Tourism District to be able to attract world-class amenities, activities and investment in Atlantic City. And, through our continued successful private public partnership with The Cordish Company, we are getting it all in the world’s number 1 outdoor retailer, Bass Pro Shops.”
The store will offer equipment and clothing for fishing, hunting, hiking, backpacking, wildlife viewing, camping, outdoor cooking and more. A gift and nature center will also provide a wide selection of outdoor-related items from lamps and dishes to bird feeders and furniture. An expansive boat showroom will feature Tracker, Nitro, SunTracker, Tahoe, Grizzly and Mako boats built by Tracker Marine Group, the world’s largest manufacturer of fishing boats.
Groundbreaking of the 70,000-square-foot-plus store is planned for the spring of 2013, and the store is scheduled to open in late 2013 or spring of 2014.
Bass Pro Shops currently operates 58 retail stores in 26 states and Canada visited by over 112 million people annually.
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8 SGBWeekly.com | AUGUST 27, 2012
s a retailer, obviously the term holiday season has dif-ferent connotations for you than it does for the rest of the country. Consumers won’t start warming up the wallets until the snow falls, and manufacturers are already looking a full year ahead. But for retailers, now is the time to prepare for a successful holiday shop-ping season.
Point-of-purchase products and accessories may not make up the bulk of retail sales, but they do offer good margins, reliable sell throughs and added value. Picking the right accessories is the primary battle: items that are trendy yet time-tested, that your staff can stand behind and easily recommend and sell.
Popular POP items include sunglasses and sunglass ac-cessories, waterproof cases for electronics, multi-tools, hand warmers, and even watches, knives and other higher-ticket items. And ultralight everything, such as stoves by Optimus and cookwear by GSI, continue to do well. Water bottles are another exploding market, with a continued emphasis toward eco-friendly and health-conscious construction. Of course new offerings in headlamps continue to shine as well.
According to messenger bag frontrunner Timbuk2, electronics continue to lead the accessory charge. “For the 2012 holiday sea-son, iGadgets continue to be the ‘apple’ of consumers' eye, and they want to take them everywhere,” CEO Mike Wallenfels said. “This means that outdoor stores should look to sell protective cas-es and covers to supplement the iPhone, iPad, and other portable
A
tech devices.” For Timbuk2, these cases include the Element Sleeve and Mission Cycling Wallet, which keep the elements at bay but allow full use of iGadgets while biking or skiing. “Another trend is GPS-enabled toys that consumers can use to bike, hike or run to track location and also share that information over social networks. Examples include the Garmin Edge or Contour digital POV cameras,” said Wallenfels.
Electronics sales continue to impress, according to retail point-of-sale data compiled by SportScanInfo for OIA VantagePoint.
“The increased access to GPS devices across a wide spectrum of products is an exciting driver for the overall electronics busi-ness,” said James Hartford, CEO and chief market analyst at The SportsOneSource Group, which manages the OIA VantagePoint plat-form. “Hand-held outdoor GPS systems have generated over $32 million in sales for the five-month fiscal year-to-date period through June and GPS-enabled wrist-top combos were up more than 50 percent to nearly $20 million for the period.”
Brick-and-mortar / online success story Mountain Gear agrees that electronics are where it’s at for accessories. “The things that continue to do well are the pinnacle products, the best in class. Things that blend multiple technologies into one amazing new tool for people,” said lead buyer Travis Nichols. “Fall’s going to be an interesting one. My head always turns to snow sports. There’s tremendous opportunity in the Alpine Touring boot category, with strong offerings from multiple brands,” he said. Nichols also points to electronics such as multi-pur-pose watches, first-person cameras and cases for smart phones as important accessory categories.
Rob Wykoff, accessories buyer at Backcountry.com, agreed with Nichols and added to his list: the Pentax Optio GPS camera and the Casio Protrek triple sensor altimeter watch. Wykoff also recommended sunglasses by Oakley, Costa, Julbo, Smith and Revo, as well as the Zeal iON camera/GPS goggle and the Smith I/O Recon goggle.
Salt Lake City’s Kirkham’s Outdoor Products looks to winter as well. Owner Jack Kirkham recommended plenty of winter accessories such as hats, gloves, and socks in particular. “Socks are a, really strong holi-day item for us,” he said.
Following is a look at a few more hot selling accessories for the holidays this season. ■
RETAIL FO
R TH
E
HOLiDAYSMUST HAVES
A look at the accesories that will helpbuild margins this holiday seasonBy Aaron H. Bible
AUGUST 27, 2012 | SGBWeekly.com 9
10 SGBWeekly.com | AUGUST 27, 2012
BIOLITE CAMPSTOVE converts heat from a small fire into usable electricity and recharges your phone and LED lights while you cook. Unlike solar, the wood-burning BioLite CampStove is an on-demand source; it is also an eco-friendly option that uses renewable resources for fuel. MSRP $130
GREEN GURU SPINNER BACKPACK is made of upcycled bi-cycle inner tubes and PETE fabric from recycled bottles. Boulder, CO-based Green Guru offers a full line of upcycled accessories for retail floor and countertop. MSRP $100
JULBO TENSING MOUNTAINEERING SUNGLASSES are lightweight, durable and protective with a wrap-around design guarding against high-altitude sun and wind. A dual injected frame combines strong outer material with a flexible in-ner for comfort. Available with the Spectron 4 lens. MSRP $50
LIFEPROOF IPHONE CASEis slim and allows functionality of all buttons in a fully waterproof case. It’s useable underwater for photos and videos as well as in snow and dust. MSRP $80
LIGHT & MOTION SOLITE 250 RE-CHARGEABLE HEADLAMP is an award winning, USB re-chargeable Solite headlamp delivering 250 lumens of white light and features a low-light 100-hour reading mode and new red sidelight allowing hikers, climbers and bikers to be seen from the side. Light & Motion products in bike and dive also excel. MSRP $150
PELICAN products introduces PELICAN PROGEAR a collection that includes urban backpacks in four styles of ballistic nylon that are lightweight and made to house a crushproof Pelican case or protect a tablet or laptop; the 9420 RALS, a portable, remote ar-ea-lighting system featuring a rechargeable lithium battery; a Mi-cro Case series and Hardback series of cases to protect portable electronics with automatic pressure equalization and anti-scratch foam; the P1075 weapon and accessory case; and a Sport Wallet built to withstand extreme conditions that is crushproof and water-resistant. Pelican also has a new flashlight and headlamp collection.
POINT6 launched a redesigned collection of performance cycling socks for Spring 2013 that is gaining traction as a favorite amoung athletes for high quality, comfortable and long-lasting merino wool products. The collection includes 10 styles with new colors, designs, trends and sock construction techniques in heights from one- to seven-inch cuffs. Point 6 socks are en-gineered with sport-specific cushion for fit.
STERIPEN FREEDOM SOLAR BUNDLE includes an 8,000-treatment Freedom UV portable water purifier, a travel pouch, palm-sized solar charger, A/C wall adap-tor, integrated LED flashlight, patented water sensor, USB cable and a half-liter BPA-free bottle. The Freedom is the smallest, lightest and first USB-rechargeable SteriPEN on the market that kills more than 99 percent of bacte-ria, viruses and protozoa in 48 seconds using the same technology used to treat major municipal water supplies. Its impact-resistant quartz bulb treats up to 4,000 liters of wa-ter saving 8,000 plastic bottles from the landfill using renewable solar power with an instant-on, button free design. In-dustry-leading safety features in-clude water sensors, auto-timer and LED treatment indicators. MSRP $15
PRINCETON TEC APEX RECHARGEABLE HEADLAMP is Princeton Tec’s brightest line at 200 lumens and uses a USB cable to charge its Lithium Ion battery. The battery can be worn on the back of the head or in a pocket with an extended cord. It has a published burn time of 90 hours with two types of LEDs and two modes. MSRP $150
SNOW PEAK LAPEL TORCH offers hands-free lighting by using a simple magnetic clip attached to a jacket, shirt or shoulder strap. The light can be tilted and turned to focus its beam in any direction. MSRP $66
SUUTO AMBIT WATCH blends multiple functions into one high-quality machine. Includes a heart rate monitor, GPS, and 3D compass. It will give altitude, baromet-ric pressure and tem-perature. MSRP $600 (with heart rate belt)
12 SGBWeekly.com | AUGUST 27, 2012
CELEBRATES 50 YEARS By Aaron H. Bible
Long-time A16 president Mic Mead shows off one of the company's ground-breaking baffled down jackets, shown here in 1974.
ICONIC OUTDOOR SPECIALTY RETAILER ADVENTURE 16 TURNED 50 THIS YEAR, AND NONE OF THE COMPANY’S INDUSTRY FRIENDS OR CUSTOMERS WERE LIKELY TO MISS OUT ON THE CELEBRATION.
AUGUST 27, 2012 | SGBWeekly.com 13
began the party by adorning each of its
five retail locations in southern California with giant timeline posters, with the same heritage information and photos on the company’s website, adventure16.com.
Having been around since 1962, the local papers took an interest in the subject as well, and A16 staff joined in on their original hometown’s local parade in La Mesa, CA. In May, there was a special one-day “Sale-a-Bration” in the parking lot of the San Diego retail location, complete with a vintage and antique gear collection on display, an “old gear contest” and games with prizes and giveaways. The same party is happening at the company’s West Los Angeles store next week.
The company held an industry block party at its booth at Outdoor Retailer Summer
Market, Saturday afternoon of the show, at which A16 was one of the original attendees. The amount of imbibements enjoyed by hundreds of attendees right in the middle of the main show floor was a true testament to the number of friends A16 has in the industry, partially due to its role as both a specialty retailer/buyer and as an international outdoor accessories distributor, not to mention its rich history in outdoor gear manufacturing.
“It was just a great way to help celebrate the occasion with industry friends and with our customers,” said A16 president John Mead. “We decided to make it a block party. You know, this industry’s been great for us, so lets’ make it convenient and open to everyone and throw it on the show floor...all the surrounding booths joined in and we went through six kegs in 30 minutes, so I believe everyone had fun.”
Before the 5 p.m. celebration on the Outdoor Retailer show floor, the company hosted another special party, honoring its alumni, of which at least 50 of whom are still working in the outdoor industry. “I have yet to find another company that has that many alumni still in the industry,” Mead continued. “About 40 of them came to the party. A16 has a unique culture and that’s what helps bind us all. They still feel a part of that family and that culture we’ve created.”
And the party isn’t stopping there. “In the fall or early winter we hope to have a celebration party for our 90 employee owners,” said Mead.
After 50 years of innovation, Adventure16 is still known as a place to hang out where customers are welcome to stop by and chat, look at maps, meet up for activities. The company also serves as a backroom for
Adventure 16 alumni gather for a group photo at this year's Outdoor Retailer Summer Market in Salt Lake City. About 40 of the 50 company alumni still working in the outdoor industry have a special bond and keep in touch through Facebook and industry gatherings.
A16
14 SGBWeekly.com | AUGUST 27, 2012
more than 1,000 other independent retails shops worldwide, with its wholesale distri-bution division for outdoor accessories. “We saw a need and we filled it, starting back in the ‘70s,” Mead explained. “Small shops needed a consolidated source for accesso-ries. We started our next day shipping pro-gram at that time.”
From the company’s beginnings in the 1960s, up through the late 1980’s, A16 was also known for its gear manufacturing. Some may be surprised to learn that the Explorer Scouts and dads who founded the company (originally intending to make high-quality 16mm films of their outdoor adventures) invented the first external frame/hip belt system, created the first down fill sleeping bags using only Highest Grade Available down, the first baffled down jacket with underarm vents and shoulder protection, and, developed the first two-layer dome tents for backpacking as well as pioneering the use of alloy aluminum poles. Jansport quickly followed A16’s lead of abandoning fiberglass poles for aluminum, and the rest of the industry joined in, just as it did with A16’s pack designs, bag designs, and tent designs.
"... A16 has a unique culture and that’s what helps bind us all. They still feel a part of that family and that culture we’ve created...”
Adventure 16 was the creator of a backpacking system that put most of the pack's weight on the hips, a convention that was adopted by every major pack manufacturer. Shown here is the company's first pack, invented in the early '60s.
Mic Mead, who ran A16 from 1970 to 1995 and was responsible for a number of its innovative products and business practices, pokes his head out of one of the company's game-changing double-walled dome tents, at Tuttle Creek in Yosemite National Park.
© 2012. Yupoong and Flexfit are registered trademarks of Yupoong Inc. All rights reserved. USA Patent #5715540 E.U. Patent #0639338 Australia Patent #671359 Canada Patent #2092362 France Patent #9406840 Korea Patent #082922
New York: 1.800.424.4464 www.flexfit.com California: 1.866.941.2555
Adventure16 has a rich legacy in the manufacturing, distribution, and retail facets of the outdoor industry, dating back now 50 years in 2012.
AUGUST 27, 2012 | SGBWeekly.com 15
© 2012. Yupoong and Flexfit are registered trademarks of Yupoong Inc. All rights reserved. USA Patent #5715540 E.U. Patent #0639338 Australia Patent #671359 Canada Patent #2092362 France Patent #9406840 Korea Patent #082922
New York: 1.800.424.4464 www.flexfit.com California: 1.866.941.2555
16 SGBWeekly.com | AUGUST 27, 2012
Mead himself has been hanging around the shop since 1970 when his uncle Mic Mead and his father David teamed up and recapitalized A16 - and worked summers until joining the company full time in 1979 after finishing college. John Mead became general manager in 1987 and assumed his current role as president in 1992, while his uncle stayed on and continued to run things until 1995.
Mic acquired the Granite Stairway Mountaineering brand in 1981
and began to grow the company’s wholesale distribution business. Not yet satisfied, in 1987, he began a program to make every employee an owner, which was accomplished in 2001 with 90 percent employee ownership.
Today, A16 continues to focus on exceptional quality and customer service, and remains a true local, cutting-edge outdoor specialty gear shop, with at least another 50 years in them. ■
At Outdoor Retailer Winter Market 2011, Adventure 16 president John Mead took some time to describe the influence that Scouting has had on his life and how it was the genesis of the company. Click on play icon to view video.
A16 West Los Angeles Store in 1974
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FOR INFORMATION CONTACT 704.987.3450 OR [email protected]
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