COMMUNITY NEWS
THE STATE OF SPECIALITY RETAIL SALES: CAUTIOUS OPTIMISM e data points used in the following sales and inventory update were collected from monthly sales reports and survey results from Grassroots Outdoor Alliance members and vendors.
large part of the growth from two historic years. Inventory levels have largely had an inverse—and in many cases equally dra- matic—trend over the past several years. Beginning in late 2022, pandemic-related supply chain issues began to dissipate, which coincid- ed with the beginning of a decline in sales across most channels. This led nearly 70% of retailers to indicate they were “over-inventoried” in spring 2023. Fast forward to fall 2024, and there has been a dramatic improvement, with only 35% of retailers indicating they are “over-in- ventoried.” While the vendor commu- nity did not indicate similar widespread inventory issues at the beginning of 2023, fall 2024 is the first season that shows a marked change, with more brands in healthy inven- tory positions. e general economy will continue to play a large role in the unfolding of future con- sumer demand, but sales show- ing signs of stabilization and inventory levels continuing to move in the right direction both at the retail and brand levels support a cautiously optimistic outlook for 2025. — Grassroots Outdoor Alliance
Without a doubt, it’s been a bit of a roller-coaster ride at specialty outdoor retail the last few years. In 2021, the Grassroots Outdoor Alliance network of retailers saw successive growth in each quarter and 28% annual sales growth— equivalent to what, for most retailers, is a decade of growth compressed into a single year. e following year, 2022, added another 6% growth to 2021’s record-breaking status. Seeing consistent double-digit average growth across estab- lished retailers serving stable communities will likely hold a record for decades in the outdoor industry. In Q1 of 2023, Grassroots aggregate sales dipped for the first time in two years, and there have been declines each successive quarter since then. at being said, the deepest comp decline came in Q4 of 2023 (-9.9%) and, since then, Q3 of 2024 signals the best quarter since the beginning of 2023 at a decline of 1.5%. In total, aggregate sales within Grass- roots were down 7% in 2023, and are down 2.8% year to date through September 2024. While unsavory, these sin- gle-digit declines coupled with signs of stabilization point to an industry that is retaining a
Multiplicity eses Grassroots retailers expanded, opening doors in new locations over the past year. Looking for a sign of optimism in the outdoor marketplace? While expansion can be a risky strategy, it’s also a sign of a robust brand with a culture that resonates with customers. According to the 2024 Grassroots Annual Report, while 65% of Grassroots retailers are single-door operations, 35% are multi- door—and that number is growing, spearheaded by the follow- ing shops that opened new storefronts over the past year. • Gearhead Outfi ers, Glenwood Springs and Grand Junction, Colorado • High Country Outfi ers, Peachtree Ba le Shopping Center, Atlanta, Georgia • Walkabout Outfi er, Merchant’s Square, Williamsburg, Virginia
6 GRASSROOTS STORIES
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