Q2 DTC + RETAIL SKYROCKET
Who would have thought that an out-of-control pandemic would create an environment in which DTC sales of Outdoor products would be off the charts! Bike, camping, hiking, camping, RV, motocross, fishing – if it happens outdoors in any place close to wilderness, it took off both online and in-store!
Consumers shopped and then headed to the hills to be with family and friends, or just to find sanity by trying to escape reality and the never ending pandemic news cycle.
MALL RETAIL IMPLOSION ACCELERATES
A record 9,300 retail locations closed across America in 2019. USA Today reported last month that forecasted closures in 2020 will push 25,000 locations! Some 55-60% of those closures will come in shopping malls. Fortunately, most Outdoor retailers are bucking this trend with storefronts outside mall environments.
OUR THOUGHTS ON Q3
Predicting future trends is tricky given the up-and-down pandemic news and resulting political whirlwind. We expect DTC to stay strong though, and our guess is another strong quarter for all things Outdoors. We believe most brands will continue investing more in digital marketing to pivot resources toward a DTC strategy, just as Nike is doing. As reported by Reuters, 50% of overall business is Nike CEO John Donahue’s aim for the shift to digital sales. “Our vision is to create a clear and connected digital marketplace … So we’re accelerating our approach,” he said.
Q2 numbers may be impossible to match due to seasonality, return to school, and limited product availability, but all signs point to a continuing shift toward accelerating online sales.