More Americans are devoting their time and money to experiences and adventure than ever before. But unfortunately for outdoor brands, changing attitudes are not translating to increased purchases.
At an NPD-hosted trend seminar at Outdoor Retailer Summer Market last week, analysts Matt Powell and Julia Day delivered data and insights on the overall retail landscape, as well as the stagnating outdoor market.
Overall retail sales growth across all categories slowed in the first quarter of 2019, dropping from about 3 percent growth in the fourth quarter of last year to under 2 percent growth this spring.
That’s bad news for the outdoor market, where growth has remained virtually flat year-over-year.
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Even though consumer insights show that shoppers have shown a renewed interest in getting outside, it hasn’t translated to a bump at retail. Many brands at the show could be heard blaming gloomy weather for sub-par sales, but based on NPD’s data, it’s probably due to the fact that consumers are still diverting wallet share to the more popular and versatile athleisure category.
In both footwear and apparel, athleisure styles lead over fashion and performance styles. In footwear, athleisure sales have broken the $3.5 billion mark, up from around $3.45 billion in April of last year. By contrast, performance footwear styles have continued to plummet, down to around $2.2 billion from around $2.4 billion in April of last year. Outdoor purchases have remained flat, and vastly lower than both, hovering at $500 million year-over-year.
There are small victories to be found in the outdoor category, in certain segments. While apparel is down 0.5 percent ($17 million in overall sales), footwear grew 0.6 percent ($6 million). Accessories also grew by 0.2 percent ($1 million) from last year.
E-commerce sales have picked up for outdoor where retail business has slumped. With footwear in particular, online sales are up 19 percent.
Within the breakdown of styles hitting hardest with consumers, an interesting winner emerged this past year. Sales of sneakers made for trail running are up 33 percent, making up $73 million in sales. The only higher grossing category in the outdoor footwear space was hiking boots, predictably, at $129 million (though the category only grew by 15 percent).
Though sales data hasn’t given brands and retailers much to get excited about for 2019, a potential long-term win for outdoor brands is the fact that their values generally align with their next target consumer group: Gen Z.
While these younger consumers (roughly between the ages of 7 and 22) don’t have the same purchasing power as their millennial counterparts yet, savvy brands know that they’re the group to entice going forward. And, research shows that Gen Z is a more socially and ecologically conscious demographic—already a strength for many outdoor brands who champion sustainability and conservation efforts.
According to NPD research, Gen Z consumers are committed to changing the world through activism, and they expect to see the same values demonstrated by the brands from whom they buy. “The public expectation of your brand has never been greater,” read one slide.
Though they’re tech-dependent, they’re not content with mindless scrolling through social feeds, NPD’s data shows. They like to get out and experience the world, especially through travel. It’s possible that at some point, their spending habits might reflect their spirit for adventure.
