Outdoor Gear Retail Sales Down

[Bill in Roswell]

<p style=”text-align: left;”>The outdoor industry publication Outdoor Retailer has reported on down turns in outdoor retail. Patagonia and North Face have had layoffs. Several Public Lands stores are closing. REI has cut worker hours. There doesn’t seem to be any one answer. What do you think are reasons for the downturn in outdoor retail?</p>

[bradmacmt]

A lot of buying during the pandemic, and since then inflation cutting into budgets for non-essentials. Might also be that the Instagram generation got infatuated with “outdoor activities” (like backpacking) only to discover it’s not as cozy, or easy as social media makes it look.

[Hopearotie]

I agree with @bradmacmt…Inflation. Recreation isn’t essential and gear lasts a long time after the initial investment. Most people that typically weren’t into outdoor recreation got into it during the pandemic and have the gear they need (If they are still participating). As for me, I know I’m not buying anything extra unless I NEED it. Don’t have the extra cash for gear right now. I would rather go on a trip vs. buy gear. Would I like to upgrade??? Sure, but It’s either upgrade or use the money to get out on a trip. Now I have to choose… I would rather get out than have gear I can’t afford to use lol.

[Terran Terran]

I go to REI and I don’t find what I want. I like Patagonia, but I won’t pay a full $200 for a hoody. I buy them on sell. I have the essentials. I replace things that wear out, but most always at a discount. Usually I can do better online where there’s a lot of competition and a lot more choice.

[George H]

Does the article talk about small makers?

Some of those shut down this year: Waymark, Groundbird, Hummingbird Hammocks comes to mind. The former was unable to make ends meet; the latter got kids while hit with a predatory ADA lawsuit! Groundbird Gear just disappeared one day.

Appalachian Gear Co also went awol

Loco Libre got swallowed up by the Dutchware empire just recently. Good or bad?

Rockgeist was hit hard by Helene and seems to struggle to return.

And not to forget Blackrock Gear and the little down beanie. The Covid era did them in

 

[Murali C]

backpacks are still very expensive…..tents seem to be more competitive nowadays….prices need to come down…..fewer people buying will hopefully bring prices down.

Will Trump’s tariffs now increase Durston/Tarptent products coming from China? MLD and Zpacks will not be affected that much perhaps…hopefully they don’t increase prices.

[Terran Terran]

Durston, Zenbivy, Garage Grown Gear. I used to shop at Fedmart, Kmart, Gemco, Now I shop at Walmart, Amazon, GGG, or whoever has the best online price or the best quality product for my needs.

How many manufacturers now make sleeping pads, tents, hammocks? How many styles of backpacks? Its nice to have the selection, but unless the product is truly original, it doesn’t matter who you buy from when its all basically the same product. I have no loyalty to name brands. I try to support the cottage industries, but like most of them, I’m out to support myself. I owe them nothing. Remember Sears, Montgomery Wards? Remember America?

[Bill Budney]

There was a time when REI was the best place to buy outdoor gear. That was many years ago. There was a time when North Face made the best outdoor gear. That, too, was a long time ago. Similar for Patagonia, although they do still make some great stuff, but it has become a mixed bag.

Look at Garage_Grown_Gear’s growth. I’ll bet that it isn’t “outdoor gear sales” that are down. It’s just that the big players have changed.

Oh, but you said “RETAIL sales”. Like all retail sales, they have moved online. Covid forced that change, and it is probably permanent. Subscription shipping plans that limit shipping costs (such as Amazon Prime) have been extremely popular.

 

[Dan @ Durston Gear]

“Will Trump’s tariffs now increase Durston products coming from China?”
Most of our gear is built in Vietnam. Only our Pro tents are built in China because they are the only factory that can hot bond DCF. Everything else (regular X-Mid’s X-Dome, Kakwa packs etc) is from Vietnam, Austria or Taiwan.

[Terran Terran]

It matters not which country. Its not just China. The point is to limit any outside competition even if we end up with high priced junk. You should spend a few mil building a factory here. Even if you have to close it in four years when nobody can afford your tents. Heck, we have Coleman. I think.

[Sam Farrington]

Whew!  Still making (and improving) my packs and tents.  So don’t have a clue of what’s going on in the markets, even though BPLing for many years.  Still need other items though, like Mids and have found the best come from Vietnam and Europe.  Kind of miss the party life of old, but this makes me even healthier.  Only concern is the increasing climate change that is obviously not being addressed.  And the aliens are not about to fly in and save us.

[Zero Flight]

It seems like a lot of the bigger names are seeing slower sales overall (maybe net sales rather than gross) but also seems like there are far more newcomers on the market over the last few years, whose sales are increasing.

[Bill Budney]

In addition to a shift from mega stores to cottage specialists, a related concern (for all brick-and-mortar stores) is the aging population. Younger people buy stuff (because they don’t have it yet), while older people have what they need and save more. As the population ages, the number of people buying new stuff decreases.

Some of this is just demographics. That part will get worse before it gets better (decades from now).

[Sam Farrington]

>  fewer people buying will hopefully bring prices down.

Yay!  More MYOG and small biz for you and me.  Maybe even gear made in the US.  Or just more time spent in the wilds and not in the stores, bars and restaurants.  And Jack Stephenson’s life long example will set the tone.  And maybe we will actually make stuff.  And no need for tariffs.  And thanks Dan for reminding us where we get our gear from now.  Even our brains and health will benefit, especially for those who come after us.

 

[Bill in Roswell]

Stephenson was my icon around 1980. Tents and sleeping bags light-years ahead of others.

[Haakon R]

a related concern (for all brick-and-mortar stores) is the aging population. Younger people buy stuff (because they don’t have it yet), while older people have what they need and save more. As the population ages, the number of people buying new stuff decreases.

Some of this is just demographics. That part will get worse before it gets better (decades from now).

This is for sure true if we look at all spendings lumped together, but I’m not sure the picture stays the same if we single out outdoor gear.

If I look back at my own acquisition pattern, I definitively had more need to acquire outdoor gear from I was about 16 to about 25, so while I probably bought more outdoor gear then I should through that time, I also had very little money to spend. I had to save for most purchases and even then I’d usually had to opt for a more affordable version than I’d prefer.

25-35 income certainly improved, but so did expenses. Kids, buying a home, all that stuff.

35-45 That’s still not very old I guess, but this is probably where my spending hit the high mark. A comfortable financial situation allowed me to replace my older, mid tier, rather heavy equipment with newer, top tier equipment.

45-55 is a road not yet travelled, so I don’t have the data yet :)

Based on my observations of the Norwegian marketplace, I think there’s a couple of things going on.
1. Because of travel (boarder crossing) restrictions during Covid, sales of outdoor gear skyrocketed.
2. When the travel restrictions ended, outdoor retailers still had stock and future deliveries dimensioned for the Covid-era. This led to panic sales to move inventory and free up cash.
3. During the period of constant sales, where every dealer tried to out-sale each other, customers got used to getting anything they needed at a discount – so this changed the customer mentality to expect anything we need to be on sale if we just give it some time.
4. While the industry is now finding ever more creative ways to undo the predicament they’ve put themselves in, they still struggle to make a healthy profit on their sales.

Aaand, in addition to the market being so saturated with gear right now, I don’t think it makes the situation any better that the large outdoor companies have tried (and largely succeeded) to make outdoor gear into fashion. While initially great when it’s in vogue, you’re setting yourself up for trouble when that trend fades out. And if the fade out coincides with a saturated market, that quickly turns into a double whammy.

[David D]

My sister’s boyfriend works for the company that bought Backcountry.com (in distress) and this sequence of events sounds familiar.

[Brad W]

Sales are down-from when? From the pandemic boom? Need specifics. That is to be expected.

[David Thomas]

“Younger people buy stuff (because they don’t have it yet), while older people have what they need and save more. ”

But the younger generation is less into stuff in general, opting to borrow or rent when they can.

Like online dating and not having a landline, these are generational changes that aren’t going to reverse.

[Bill Budney]

Like online dating and not having a landline, these are generational changes that aren’t going to reverse.

Yes, that is my greater point: Don’t worry so much about the “why” of buyer behavior because it is a small factor compared to the the inevitable (and not quickly reversible) decrease in market size (because the population itself will soon shrink for at least a generation or more).

In other words, companies should plan for decreasing markets and decreasing economy. We’ve never faced that before, so it will be a new thing. It’s coming slowly but surely, like a slow-moving steam roller.

It is better to adapt sooner rather than later.

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