NSGA Report: SPORTING GOODS STORES SELL MORE GOLF CLUBS IN LAST 10 YEARS

Full-line sporting goods stores showed dramatic improvement in sales of golf clubs over the last 10 years, according to data contained in research published by the National Sporting Goods Association (NSGA). The Associations Sports Goods Market reports showed increases in both dollar sales and market share by sporting goods stores in the clubs in sets category, the largest in the $3.6 billion golf equipment market.

Comparing 1999 to 1989, sales increased from $172.7 million in 1989 (13.3% of clubs in sets) to $624.1 million in 1999 (34.1%). This increase came at the expense of pro shops, whose sales of clubs in sets dropped from $409.0 million in 1989 (31.5%) to $302.0 million in 1999 (16.5%). Specialty golf shops improved market share slightly during the same 10-year period, with sales rising from $364.9 million in 1989 (28.1%) to $529.0 million in 1999 (28.9%).

The growth in club sales for sporting goods stores has been recent, with market share jumping from 16.5% in 1997 to 34.1% in 1999. At the same time, the market share of pro shops dropped from 26.0% in 1997 to 16.5% in 1999.

Discount stores continued to dominate the second-largest portion of the golf equipment market, golf balls. Discount stores accounted for approximately one third of all golf ball sales during the period 1990-98. Sales of golf balls at discount stores increased from $207.9 million in 1990 (33.8%) to $281.9 million in 1998 (31.8%).

Pro shops ($215.4 million), full-line sporting goods stores ($193.3 million) and specialty golf shops ($102.8 million) showed increased sales of golf balls during that period. Pro shops gained market share, growing from 18.5% in 1990 to 24.3% in 1998. Sporting goods stores also gained share, increasing from 17.9% in 1990 to 21.8% in 1998. Only specialty shops lost market share, falling from 16.1% in 1990 to 11.6% in 1998.

Specialty shops and pro shops each accounted for a quarter of the current utility/individual club market, combining for more than $280 million in sales. From 1989-99, specialty shop sales of utility clubs grew from $42.3 million (26.9%) to $140.8 million (28.0%), while pro shop sales increased from $50.4 million in 1989 (32.1%) to $140.3 million in 1999 (27.9%). Sales of individual clubs rose at full-line sporting goods stores from $30.2 million in 1989 (19.2%) to $89.5 million in 1999 (17.8%).

Sales of golf bags from 1991-99 increased at pro shops, sporting goods stores and discount stores but fell at specialty golf shops. Pro shop sales of golf bags increased the most, from $56.1 million in 1991 (20.6%) to $101.9 million in 1999 (30.9%). Sporting goods store sales of bags rose from $49.3 million (18.1%) to $68.6 million (20.8%) during that period, and sales at discount stores increased from $47.1 million (17.3%) to $59.0 million (17.9%).

While still ranking second among channels of distribution, sales of bags at specialty golf shops dropped from $85.8 million (31.5%) in 1991 to $73.9 million in 1999 (22.4%).

The data suggests golfers are not waiting until they get to the course to purchase their equipment. Sporting goods stores and off-course golf shops have gained sales at the expense of pro shops.

Internet sales, although rising, have yet to make a major impact on sales of golf equipment. In 1999, the Internet accounted for 2.8% of sales of clubs in sets, $51.2 million of the $1.8 billion dollar market. The Internet's share of sales of utility clubs was 0.8%, or $4.0 million of a $503 million market.

The Sporting Goods Market in 2000 is available for $175 for members of the Association; for non-members, the cost is $250. For additional information, contact Thomas B. Doyle at NSGA, 1601 Feehanville Drive, Suite 300, Mount Prospect, IL 60056-6035. Phone: (847) 296-6742, Ext. 107; E-mail: info@nsga.org, or fax: (847) 391-9827.