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Exclusive: Where Ski Retail Is Headed in the New Normal

Retailers are heading into this next season with a tremendous amount of uncertainty. Covid-19 has changed everything in our life, our livelihood, our passion ... aka the ski industry. There will be a new normal, but it will be far from any “normal” that we have experienced before. There is no playbook to get through this, nothing we can look back on as a point of reference -- just nothing. Retailers are going on gut feelings because we have even less of an idea now what will happen than we did when the industry closed down one Saturday last March.

We have been attending numerous industry webinars, and underlying the discussion is the sobering opinion that Covid-19 didn’t change anything that wasn’t going to happen to the ski industry eventually, it just accelerated the process by a few years. There is a sentiment that the ski retailer purely as a commodities mover is a dying model and the only way to survive will be to adapt and focus on service (this will be the topic of Part 2). This reshaping of the industry was to be a gradual change over the next few years, but the events of the past 120 days have turned it into a complete shift that must happen as soon as now.

While retailers were writing their 2020-21 orders, the entire ski industry came to a screeching halt. Not only did shops lose those orders, they also lost their spring sales, A ski shop's financial timeline goes something like this: Most retailers are on extended terms with their suppliers (the manufacturers). The gear that they receive in the fall and sell over late winter is paid for in late winter. Spring is when shops hope to bring in revenue that will be their profit. The income from these sales is what most retailers use to pay the last of their bills for the season. Think “Black Friday” for the industry, not as in a big sale for the consumer, but when retailers go into the black and start seeing a return on their year-long investment. But Covid hit, and shops lost those spring sales, which are vital to their financial stability.

Because of new buying trends in an Amazon-fueled era of two-day shipping and instant gratification, “click and add to cart” retailers will need to adapt and adapt fast -- as in immediately. If a retailer does not have an interactive website and either an online presence or access to the virtual consumer, they might as well plan on an exit strategy. What got them here in their business -- ie, waiting for consumers to walk in the front door with cash in their hands -- will not be getting them where they need to be to survive moving forward.

I reached out to retailers, buyers, and industry insiders; all have different philosophies with their orders for the coming season. Some are very calculated, some are all in, still others have just whipped out their trusted Magic 8 balls. Some have even thrown in the towel, shutting the doors and getting out of retail completely.

Let’s look at the spectrum here. One of the largest retailers, Vail Resorts, canceled all of its pre-orders, and we are hearing it is abandoning its retail stores as we know them. Yes, that is huge news … but this is an industry-wide change, not just one retailer, even as large as Vail Resorts Retail is. Canceling everything? Well, that is a very conservative (or is it risky?) path; VR is one of the most financially diverse organizations, so it can afford to take this direction. Next are the service-oriented shops acting on the safer side, which means just trimming their orders and banking on skis and boots that have been tried-and-true sales successes. They are adjusting the variety of their selections and not really focusing on the depth of a model collection. Other shops think there will be excess production from these previous models and expect that there will be demand, that affluent skiers will still be buying gear and will need a place to do it.

The one thing that most shops agree on is that they need to change how they access and interact with their customers, and how they get product to them. More now than ever, a retailer's online presence is paramount. This can be either through their own database or through sites and communities such as Pugski.com. Skiers will be making purchases, but many will be unwilling to come into a shop. Curbside pickup, shipping, and any other “hands-free” method of interaction will be more important than ever. These past few months have shown that a sale is made before a consumer ever enters a store via independent reviews, interaction with influencers, and a click of the mouse.

The question I have for every retailer and supplier reading this: Are you ready, and what have you prepared moving forward?

Disclaimer: This research was compiled over a weeks at the end of last season. Think about what we thought we knew a month ago as compared to what we know today, and remember that what we think we know today will be different than what we will know next month.
About author
Philpug
I started skiing in the mid-70s in the Pocono Mountains of Pennsylvania; from then on, I found myself entrenched in the industry. I have worked in various ski shops from suburban to ski town to resort, giving me a well-rounded perspective on what skiers want from their gear. That experience was parlayed into my time as a Gear Review Editor and also consulting with manufacturers as a product tester. Along with being a Masterfit-trained bootfitter I am a fully certified self proclaimed Gear Guru. Not only do I keep up with the cutting edge of ski gear technology, but I am an avid gear collector and have an extensive array of bindings as well as many vintage skis.

Replies

Simply, the demise of the ski shop is not the internet, the demise is self inflicted for many of the reasons mentiond here. This is why I said initially, that is happening now was inevitable, it just was excellerated.
When I find a really knowledgeable person at a shop, who is willing to listen to me, I feel as if I’ve struck gold, because it is rare around here.

I worked last fall in a shop that is known for excellent service, but I realized that they had a gender problem. The guys who worked there were able to learn the ropes in the workshop and explain hardgoods to customers without interruption. I, on the other hand, was not allowed the opportunity to work in the tune shop, and I was always interrupted by the owner when with a customer, and he would just repeat what I told the customer. When I offered to build an interactive website they declined, while allowing a 21 year old with a short attention span and maturity issues to be their Twitter presence (mostly in snowboard gear). SO frustrating. I was basically there to zip up jackets and straighten up the soft goods. Another female employee who had experience tuning and mounting bindings had the same experience....she worked the register and straightened up jackets and helmets. I escaped to my local ski hill, where I was immediately given a lot of responsibility in different areas.....huge difference.

Covid19 is going to require shops to be innovative and forward-thinking in order to survive. Knowledge and service are going to be just as/more important than inventory. Case in point: My go-to bike shop is one run out of converted back yard shed by an experienced bike mechanic, because he’s a pro and is very responsive, kind, and respectful.
 
Covid19 is going to require shops to be innovative and forward-thinking in order to survive. Knowledge and service are going to be just as/more important than inventory. Case in point: My go-to bike shop is one run out of converted back yard shed by an experienced bike mechanic, because he’s a pro and is very responsive, kind, and respectful.

There is a model there for sure. Definitely possible to run a decent service and retail operation on a small scale based around real expertise and personal service. Manufacturers can even facilitate it if they are prepared to sell stuff on back order rather than getting all the inventory and risk out to retailers early season. Imagine you local guy who stocks maybe 15-20 pairs at a time but can order you anything form say 5 brands he has a trusted relationship with. Does savvy buys so he can offer binding/mounting combos.

Now I understand that doesn't satisfy the need of the industry sales folk to think big - but if what we're seeing is orders from the bigger chains like Vail Retail and Christys etc drying up - maybe they need to get themselves away from the idea of an order being 1000+ skis at a time and get a bit agile - mass customisation is where things are headed (& I mean in this case of the customer experience not necessarily the product).
 
There is a model there for sure. Definitely possible to run a decent service and retail operation on a small scale based around real expertise and personal service. Manufacturers can even facilitate it if they are prepared to sell stuff on back order rather than getting all the inventory and risk out to retailers early season. Imagine you local guy who stocks maybe 15-20 pairs at a time but can order you anything form say 5 brands he has a trusted relationship with. Does savvy buys so he can offer binding/mounting combos.

Now I understand that doesn't satisfy the need of the industry sales folk to think big - but if what we're seeing is orders from the bigger chains like Vail Retail and Christys etc drying up - maybe they need to get themselves away from the idea of an order being 1000+ skis at a time and get a bit agile - mass customisation is where things are headed (& I mean in this case of the customer experience not necessarily the product).

This is exactly the way Japanese retail used to work (big box was not possible under older Japanese retail law). It's all fine and dandy, but you WILL pay full retail which is IMHO why the small guy model will only work for services.
 
I recently bought an AT setup (skis and bindings) through an on-line retailer (Curated) whose business model is to pair the customer with an "expert" who's job it was to work me through the various options and help me pick something that would fit my needs. Now, it was not a coincidence that my "expert" was someone that I patrol with and who knows how I ski, so my experience may have differed somewhat from a buyer who logged onto their site and was assigned to someone at random. Nevertheless, I thought this was an interesting hybrid approach to selling skis.

This process was very helpful, in large part because I recently transitioned back to fixed heel skiing after 20-some years on tele gear, so I did not really know that much about AT gear. Also, my "expert" used to be a backcountry guide, and was very knowledgable about AT gear and the tradeoffs involved in choosing skis and bindings (I knew this already). We did skip over the conversation about skiing styles and ability, but it was clear that that would normally have been part of the process. I can't say whether "agism" would have been an issue with someone not familiar with my abilities (I am 68).

I don't know how their back-office operation works, but I was able to get gear that was otherwise sold out or back ordered (I looked), and the price was close to what I could have gotten as a pro patroller. Shipping took under a week. Skis and bindings were shipped from what I assume was their warehouse in Connecticut, which makes me believe that they had an inventory. I bought skins separately, and it actually took longer for them to arrive from SLC (I am in Montana) than the shipment from Connecticut.

Overall, it was an interesting experience.
 
This is exactly the way Japanese retail used to work (big box was not possible under older Japanese retail law). It's all fine and dandy, but you WILL pay full retail which is IMHO why the small guy model will only work for services.

Doesn't have to be full retail price only. Depends on how much of his margin the little guy is prepared to give away and the amount of discount he gets from the trusted relationship with brands - imagine if he always paid upfront so no credit risk? Remember smaller non flashy premises no big staff roster etc etc.
 
Doesn't have to be full retail price only. Depends on how much of his margin the little guy is prepared to give away and the amount of discount he gets from the trusted relationship with brands - imagine if he always paid upfront so no credit risk? Remember smaller non flashy premises no big staff roster etc etc.

Little guys still have expectations of taking care of a family, etc... that takes a bit of volume at low margins, and volume always needs 'more' .
 
Here is a troubling indicator: At Sun Peaks this past season it was a near record for snow, the best in 10 years. 60cm fell the week before Xmas and another 70cm during Xmas week including a new single day skier visit record when it snowed 45cm the night before and during the day on Xmas Eve Day. ...And yet skis sales were almost non existent at Elevation Ski&Bike. We became a Black Crows dealer in 2019/20 and didn't sell a single pair except to several staff (including me---great skis). Granted they are a premium priced ski and staff do get a good price, but still other skis weren't selling either. Poor ski sales during a great snow year was a shocker to me. :huh:
 
When I find a really knowledgeable person at a shop, who is willing to listen to me, I feel as if I’ve struck gold, because it is rare around here.

I worked last fall in a shop that is known for excellent service, but I realized that they had a gender problem. The guys who worked there were able to learn the ropes in the workshop and explain hardgoods to customers without interruption. I, on the other hand, was not allowed the opportunity to work in the tune shop, and I was always interrupted by the owner when with a customer, and he would just repeat what I told the customer. When I offered to build an interactive website they declined, while allowing a 21 year old with a short attention span and maturity issues to be their Twitter presence (mostly in snowboard gear). SO frustrating. I was basically there to zip up jackets and straighten up the soft goods. Another female employee who had experience tuning and mounting bindings had the same experience....she worked the register and straightened up jackets and helmets. I escaped to my local ski hill, where I was immediately given a lot of responsibility in different areas.....huge difference.

Covid19 is going to require shops to be innovative and forward-thinking in order to survive. Knowledge and service are going to be just as/more important than inventory. Case in point: My go-to bike shop is one run out of converted back yard shed by an experienced bike mechanic, because he’s a pro and is very responsive, kind, and respectful.
A man wrecked my boots. A woman fixed them.
 
Thank you to those who shared your subpar experiences with small Mom & Pop ski shops. I thought I was alone in getting crap service. It seems if you don’t fit a certain profile, you may as well not exist.

This is why I‘m so loyal to the shops who treat me well. Footloose Sports in Mammoth Lakes has been consistently friendly and attentive to my needs (not exactly local but with frequent trips to Mammoth, it’s as close enough). Also Val Surf in Valley Village does a nice tune and the people working there are always polite. Unfortunately I cannot use them as a local shop because their snow-sports inventory is limited to snowboards.
 
My ski purchase pattern is as follows:

1) compile a list of potential skis based on reviews
2) demo
3) purchase only after demoing

Naturally I gravitate toward shops where I can demo. I also prefer shops who give me the freedom to redeem my demo-credit later in the season. Out of curiosity I‘ve shopped online after demoing but the savings did not warrant the hassle of the online purchase. And even if the savings were more significant, I would still want to give my business to shops who provide me the opportunity to demo.

Demoing is a value-added service that cannot be underestimated. I would like to try J-Skis but the demoing options are very limited. I emailed J-Skis about this and they promptly replied with a generous love it or exchange it policy but I’m still reluctant to make the purchase because if I don’t love the ski, I don’t want the hassle of exchanging skis in the mail. I envy those of you who get to enjoy demo-day event.

Boots, on the other hand, are a less fun purchase. I feel like I am at the complete mercy of the boot fitter. For my next boots I plan to to go to a local bootfitter whose shop motto is “if you don’t love it, you don’t own it.” Seems reasonable to me.
 
"I am glad you are here, while we loved dealing with you, we could not tollarate going in that other shop any more." I will say, making a customer feel comfortable and not feel like they are talked down to or mansplained (yes, guys don't like it either) is something I am pretty good at. .​

Bumped just cos I was re-reading this. I remember in the early 00s going into a pretty reputable local indy ski shop and kicking the tyres on skis. I was eyeing up and seriously considering the original Seth in long when the shop manager came by and said that's a real specialist ski only for deep powder not conditions we usually get in Europe like he was trying to talk me out of it. WTF I thought a) have you even seen my size I'm right here in front of you and b) you've chosen to stock this ski why? I got the feeling they only wanted the ski on the wall for some halo effect and maybe so they could pretend they were the only gods capable of mastering the beast (laughable really in hindsight for what is now quite a puny 97mm ski).

Needless to say I left them to it, and bought some Motherships elsewhere for less from a place that was much more on my wavelength. I did return to pick over their carcass in their "at least 50% off closing down fire sale" though so there's that.
 
Are any of the ski shops near you guys mentioning any changes in their operations due to Covid, on their websites? Or has anyone been in a shop recently where there’s been a change (or not)?

One local (multi-location) shop here is reopening Oct 1 (they usually close for the summer anyway). There’s no mention of anything different other than a banner thanking healthcare workers.

The shop I used to work at still has their (minimal) 2019 pages up. Nothing new. They weren’t exactly into a big web presence but I’m surprised there’s not some mention of “Hey! We’re open! Come see us!”
 
Have an internet presence? Of course. That’s pretty basic.

Focus on selling skis on-line? No. Then you are just a commodity player. On-line shoppers will just go where the prices are cheapest.
 
Have an internet presence? Of course. That’s pretty basic.

Focus on selling skis on-line? No. Then you are just a commodity player. On-line shoppers will just go where the prices are cheapest.

Replace 'skis' with 'boots', and you're spot on. We all know the follie of online boot purchases.
 
Replace 'skis' with 'boots', and you're spot on. We all know the follie of online boot purchases.
Internally and people" in the know" are aware but Joe and Jane Skier? Not so much.
 
Internally and people" in the know" are aware but Joe and Jane Skier? Not so much.

I think all the local ski retailers, small through large, have our local population better trained than the average region. We're incredibly fortunate to have a good pool of basic understanding in the bootfit world around, and a solid handful and couple extra fingers of some pretty talented fitters. :)
 

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