Golf Datatech: A year beset by uncertainty

Golf Datatech is a world leader in golf industry research. It provides the trade with specialised market research covering retail sales, inventory, pricing, distribution, along with strategic sales and marketing consultancy.

In the UK, Golf Datatech research is based on an average of 2,000,000 records per month, recorded by EPOS systems at the point of sale.

At this time, it is well worth looking back to see how the year developed to assist in setting accurate budgets for 2020. It has been a year set against some of the most difficult trading conditions for retail in general and golf shops. Surveys have shown that most shoppers continue to be worried about the economy and political uncertainty, which effects their purchasing.

January to March

Overall sales in value terms for this quarter were at first sight good when compared to 2018 at +8.9%. A note of caution must be added here however, as last year’s first quarter was not the greatest.  A comparison with 2017 brings us down to earth with a bump at -2.3%. Four out of the five main product groups – clubs, consumables, light durables and others – outperformed 2018. The exception was apparel at -0.3%. However, excluding outerwear which suffered from very dry weather in January and February, apparel’s results are very different at +9.7%.

Unit sales in the quarter continued to develop slower than value at +3.4% against 2018 and -11.9% against 2017. Price rises accounting for the difference between the two parameters. The top performing group was others: trolleys and distance devises and the weakest, not unexpectedly, outerwear.

Sales, other than outerwear, no doubt will have been assisted by the weather: temperatures generally above average, rainfall below and sunshine above. At least something was in golf’s favour!

April to June

Following a good start to the year a downward trend set in. By the end of June sales values compared to the same time last year had fallen to +2.0% and +3.8% compared to 2017. Only three out of the five main groups were showing growth: clubs, importantly owing to their large share of the product mix, were +2.4%, consumables+3.5% and others+19.1%. Clubs performance, at a time when the purchase of many higher price pointed items were being postponed owing to the general feeling of uncertainty, is very welcome news even more so when compared to 2017 at +9.5%. Apparel including outerwear was -3.4% and light durables -2.1%

Unit growth continued to lag behind value, a pattern that has set in over many, many months. This quarter’s sales compared to last year’s was down by -6.2% and -8.8% compared to 2017. Unit sales give us a guide on the numbers of golfers purchasing particularly for higher price point items for example woods and electric trolleys.  This suggests that fewer golfers are purchasing but thankfully they are willing to pay more. Good news in the short term but worrying for the long term.

July to September

The bad news is that September signals the end of the main selling season as the darker winter nights draw in. The good news, however, is that the downward trend in value sales slowed and at the end of the third quarter the industry is still experiencing growth compared to the same period last year of +1.0% and +0.3% compared to 2017. This compares well with retailing in general as reported by The British Retail Consortium. Their data shows a fall in like-for-like sales to the year ending September of -1.7%. The difference between these two is partly accounted for by higher price rises seen in golf.

In short

So, the years trading started off comparatively well in the first quarter assisted by some very unseasonal weather. Growth compared to 2018 was +8.9%. The second quarter suffered from the uncertainty created by the ”B” word – try as I might not to mention it, but it has been a major factor! Growth continued compared to 2018 but at a decreasing rate finishing the half year at +2.0%. The third quarter saw the rate slow further, finishing with a respectable +1.0%. Higher than retail in general but aided by significant price rises.

Golf Datatech is a world leader in golf industry research. It provides the trade with specialised market research covering retail sales, inventory, pricing, distribution, along with strategic sales and marketing consultancy.

In the UK, Golf Datatech research is based on an average of 2,000,000 records per month, recorded by EPOS systems at the point of sale.

For greater detail contact John Hassett on 07775 951794