Temperatures across the globe are increasing regularly, and CEOs of cold weather companies are noticing. When the weather is warmer, there is less of a consumer need for a really warm jacket, a new pair of gloves or a new hat, and sales revenues are reflecting that decrease in consumer demand. As an effect, the outdoor industries are changing the game plan.
“Examples include ski resorts beefing up their snowmaking capability while simultaneously investing in zip lines and mountain bike trails. Some national retailers, meanwhile, are trimming pre-season orders for winter goods, pushing back deliveries of heavier weight apparel, and shifting inventory dollars away from snow sports equipment toward other faster growing sports such as cycling, running and yoga,” said a Outdoor Industry Association article published March 14, 2013.
Here are a few industry tid-bits we’ve compiled from a news sources we trust:
- Vail Resorts is investing $25 million into ziplines, ropes courses, climbing walls, mountain bike trails and other summer amenities. Read the source.
- “We have to go back to the drawing board on how we think about the risk and reward relationship between inventory and sales in our snow business,” Zumiez CEO Rick Brooks told analysts late in 2012. “Snow in general is just a changing business for many reasons, including the fact that it doesn’t snow as much.” Read the source.
- The 2011-2012 winter season was the fourth warmest on record for the U.S. Read the source.
- The number of skier visits nationwide dropped by 15 percent. Read the source.
Here at Agloves we have a similar situation. We have noticed that the “winter sales season” is shortening. March is no longer a winter month, despite a majority of its day technically being winter. You get to the end of February and sales hit a wall.
It’s funny to take a step back and look at what is really happening. As a business owner, it sometimes feels like things are always possible as long as you work at it. But no matter how much business savvy you have, how many marketing dollars you have, or how viral your YouTube video goes….Mother Nature trumps all. We are doing business as a consequence of the weather and the environment in which we all live. It’s funny.
Well, no matter. We love winter for business and gloves. We love summer for vacations, warmth and –best of all – margaritas!