Omaha, NE – Longitudes Group today announced the release of its 2006 Market Trend Report on USA Off-Course Golf retail. The research tracks the growth and contraction of the off course retail market in 189 markets analyzing the last year’s metro-by-metro changes both in the number of doors and total square feet. In the overall off-course retail segment, the trend shows the large format retailers are aggressively opening stores across the country, putting some smaller stores "out of business". Expansion and contraction are the key words as the ‘Big Box’ stores grew by 20%, while 15% or 188 of the small and boutique golf stores less than 5,000 square feet closed versus 2005.
Key findings include:
– Square footage in the channel nationwide grew this year by 1%, while the number of new doors contracted by a very significant 8.5%.
– Big Box stores over 10,000 square feet represent 15% of all doors, up from 11% last year. In square feet, Big Box formats manage 48% of the US market’s floor space, up from 40% in 2005.
– 8.7 Million square feet is the estimated retail space dedicated to the off-course channel today in the US marketplace
– Tampa-St. Petersburg suffered the largest number of store closings, followed closely by Atlanta and Indianapolis.
– Overall, out of the 189 markets that have Off-Course retail, 47% lost doors, 23% gained doors, and 30% remained the same from 2005 to 2006.
Success in Off-Course Golf specialty shouldn’t be left to chance. Significant market differences were uncovered with a number of cities indicating that there may be new opportunities for off-course retail expansion. The 2006 report provides a complete assessment of average square footage growth and contraction for the industry by categorizing store segments based on size from Big Box down to Boutiques. For the first time, Driving Ranges with a dedicated retail space over 4,000 square feet were included in the analysis.
Each metro area represented a unique mix of supply and demand variables indicating any number of influences that can impact the success of a location and local/regional market dynamics.
The retail research was conducted by contacting every Off-Course golf retailer in the USA and Canada. Initiated in 2004, the third year of calling retailers was conducted from Longitudes Group outbound research and call center from March-May of 2006. The annual survey establishes a baseline count of stores, store size and product categories carried. Retailers that have gone out of business, moved locations or incorrectly categorized as brick and mortar stores were removed or updated. Additional sources were then utilized such as on-line yellow page list services, in-market personal interviews with industry participants, press releases, real estate sources and company websites.
Sara Killeen of Longitudes Group said, "The overall net loss of golf retail doors this year strongly indicates that the large format stores have taken three to four years to impact their local competition. Many small golf retailers hung on longer than expected by moving locations, changing strategies or playing the discounting game. After a certain point though, the marginal performers can hemorrhage no more." Killeen also stated the small retailers that are surviving against the big guys are those that offer exceptional service, custom fitting, unique products, and a high-traffic location.
The 2006 Off-Course Retail Market Trend Report is a must-read for manufacturers, retailers, real estate professionals and many in the business of golf who will discover it as a one-of-akind report analyzing this important channel of distribution. It is an invaluable guide for initial due diligence research and a comprehensive market overview showing macro and metrolevel trends. The report is affordably priced at $375 per copy through Longitudes Group website, www.longitudesgroup.com/reports . For further information on the preparation of a custom analysis please contact Sara Killeen at (402) 991-6620.
About Longitudes Group, LLC, headquartered in Omaha, Nebraska, is a research and marketing company providing unique analysis on the travel and spending behaviors of avid golfers. Armed with a database containing information on the behavior of 6.0 million avid golfers mapped by county and zip code, Longitudes Group uses a geo-demographic approach to probe both the location and travel behavior of the avid golfer population. On the supply side, Longitudes Group has built the most up-to-date database of golf retailers including 16,000 golf facilities, 1,650 off-course retail stores and 2,000 chain sporting goods store. For more information, visit the company online at www.longitudesgroup.com.
Contact:
Sara Killeen
Longitudes Group, LLC
sara@longitudesgroup.com
(402) 991-6620