2010 Off-Course Retail Report Tracks Slowing in Store Closures

Portland, OR – Longitudes Group today announced the release of its 2010 Market Trend Report on USA Off-Course Golf retail. The reduction in Off-course stores continued its slide in 2010. The golf market has experienced a 32% reduction in stores since 2006, the peak before the economic downturn that brought many retail sectors devastating losses. "Big Box" golf stores maintained relative strength and staying power while the smaller format, independent retailers perished in the downturn.

First released in 2004, Longitudes Group annually tracks the growth and contraction of the Off-Course retail market. The report includes a complete analysis of 176 markets tracking last year's metro-by-metro changes both in the number of stores and the expansion/contraction of total retail square feet. In the overall off-course retail segment, 2010 has followed previous years with the large format, "Big Box" stores gaining significant market share as the smaller, independent retailers were forced to close. These "Big Box" stores continue to grow their influence with manufacturers and golfers alike, now representing 24% of all stores, but 64% of all retail space in the channel.

Key findings of the 2010 research include:

• Total square footage of off-course retail decreased by 5%, while the number of total off-course doors decreased by 11%.
• Overall, out of 176 DMAs that have at least one off-course golf retail store, only 12% gained doors, while 39% lost doors and 49% remained the same.
• Nine out of the top 10 cities, ranked by Off-course square footage, experienced net losses in both the number of doors and total square footage.
• Golf Galaxy, Golfsmith, and PGA Superstores account for 42% of the total market square footage and 174 doors in the USA off-course retail market.
• Tampa - St. Petersburg, FL suffered the largest number of net store closings (8) followed by Dallas, TX, Orlando, Fl, and Nashville, TN with (6) net closures.

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. Success in Off-Course Golf is not a simple matter of luck. Understanding the significant market differences is crucial to the success of manufacturers, retailers, real estate professionals and many in the business of golf. This one-of-a-kind report uncovers these market differences and will be an invaluable tool in discerning new opportunities for off-course retail expansion.

“Although the market continues to contract, the reduced number of closures versus last year does leave us hopeful that the worst is behind us,” stated Sara Killeen, President of Longitudes Group. “More than 50 new stores opened demonstrating that some retail groups see opportunities and are moving aggressively.”

The Research
Calls to retailers were conducted via Longitudes Group outbound research and call centers, based in Omaha, Nebraska and Portland, Oregon. These phone surveys established a baseline count of stores, store size and product categories carried. Retailers that had gone out of business, moved locations, or were incorrectly categorized as brick and mortar golf retailers were removed from the list or updated. Additional sources were utilized such as on-line yellow page list services, in-market personal interviews with industry participants, and company websites.

The report is affordably priced at $395 per copy through Longitudes Group website. For further information on the preparation of a custom analysis please contact Sara Killeen at (503) 477-6284.

Longitudes Group, LLC, headquartered in Portland, Oregon, is a research and marketing company providing unique analysis on the travel and spending behaviors of avid golfers in the US and Canada. 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 geodemographic approach to probe both the location and purchase 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, 1,104 off-course retail stores and 1,800 chain sporting goods store. Canadian Market Analysis are also available.