After a positive start to the year with overall sales values seen in January, February sales fell back to -4%. Out of the five main product groups four showed growth ranging from +2.6% for light durables to +5.9% for consumables. The largest category, clubs, with generally high price points, returned a decline. Year to date sales with one month up and one down not unexpectedly are showing a small decline of just -1.3% compared to last year.
Drilling down to individual hardware products saw seven out of the eleven showing growth ranging from +3.3% for wedges to +22.7% for trolleys. The other good news was that ball sales remain firmly positive suggesting that golfers continued to play. At the other extreme, the two categories showing the biggest decline were the two main club categories – woods and irons. The picture for apparel was mixed having four out of the eight product groups down from some as low as – 7.0%. Four categories were up – the best being headwear, up over 20%. However, this only covers 1.5% of the overall product mix.
So, what is behind these figures? A major boost to sales in January came from club sales which were up by +3.0%, very different to this month’s performance. This was a bit of a surprise considering all the new product launches. Initially it might appear that it’s the bigger ticket items that were suffering but this wasn’t true for all high ASP categories as Trolleys had a good month.
Was it the weather, as we know it can have a massive effect? Temperatures were close to the average for the time of year with the North of England and Scotland being a shade warmer. Rainfall was 76% of the average although it was a little heavier in Central and Northern England and the North of Scotland. Sunshine for the UK was a little below average at 93%. Scotland, however, was above average, particularly in the North. So, in reality we cannot find blame here.
Was it major increases in average selling prices? Well, out of the nineteen products tracked by Golf Datatech average selling prices were up a little for thirteen and down for six, but at a level almost expected in today’s environment compared to last year.
Was it a lack of stock in the trade? I don’t think so as fourteen products categories were showing greater stock levels. Of those that were down the range was -0.8% for ladies’ shirts to – 32.6% for club packs. The latter being an item that saw a +60.3% growth between December 2023 and 2024. Something to consider!
So, almost boringly we come back to the state of the economy and perhaps the level of uncertainty with all the global headlines. There has been very little news to cheer customers and encourage them to spend. In fact, the reverse forcing us to use a little double entendre in the headline for last month’s 2024 annual review – “A taxing year.” The government has told us that they are focusing on growth. That is good news but unfortunately many pundits struggle to understand how this will be achieved particularly in the short term, which will have a massive effect for retail in general. Until customers feel a bit more confident the purse strings might remain tight. GR
Golf Datatech is a Circana Company and the 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.
Golf Datatech research is based on millions of transactions per month, all recorded by EPOS systems at the point of sale.
For greater detail contact John Hassett on 07976 797081
