Insight of the Day: Consumers Spending Less On Outdoor Pursuits
- InsightTrendsWorld
- Mar 29, 2024
- 2 min read
Key points from the article:
1. Decline in Outdoor Retail Sales: The Outdoor Industry Association's annual report indicates a 3% decline in outdoor retail sales in 2023, totaling $27.5 billion. This decrease was observed across all three retail channels: athletic specialty/sporting goods, independent specialty retailers, and retail ecommerce.
2. Performance of Different Retail Channels: While athletic specialty/sporting goods saw a relatively minor decline of 1% to $20.4 billion, independent specialty retailers experienced a significant drop of 9.7% to $4.2 billion. Retail ecommerce also saw a dip of 7.5% to $2.9 billion.
3. Product Category Performance: Accessories were the only category that gained, driven by bag sales and hydration products. Apparel, footwear, and equipment all experienced declines in sales.
4. Impact of Pandemic-related Changes: The pandemic initially led to a surge in outdoor activities and related retail sales. However, in 2023, despite the continued participation of new outdoor enthusiasts, sales declined. Casual participants, in particular, are shifting the product mix towards items like running shoes, casual pants, and non-technical bags, rather than big-ticket items like skis and camping gear.
5. Shift in Consumer Behavior: Many consumers, especially newcomers to outdoor activities, are exploring retail options beyond specialty stores. They are turning to online platforms like Amazon and direct-to-consumer brands for their outdoor gear purchases.
6. Continued Interest in Trail Running: Despite the overall decline in outdoor retail sales, trail running remains a bright spot. The Sports & Fitness Industry Association reports continuous growth in trail running participation over the past five years, with outdoor brands like Merrell, Salomon, and Columbia maintaining a strong presence in this category.
7. Study Methodology: The study was conducted by the Outdoor Industry Association in collaboration with Circana, a market research company, based in Boulder, Colorado.
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