So maybe you’re wondering when the effect of the economic contagion — deep and widespread as it is — would move from negligible to obvious to overwhelming within the golf market. Telltale signs already include aslowdown in new golf course (and related home) construction;fewer rounds played; and asoftness in tournament sponsorships, be they of the title or supporting nature.
Less obvious (but not less important) barometers to watch include retail sales figures at the big boxes: 84-unitGolf Galaxy(owned by Dick’s Sporting Goods) and 74-unit Golfsmith. Styled to a Tee believes that these retailers serve as thede factowell-merchandised, inventory-heavy pro shops for golfers who aren’t members anywhere.
On the other side of that are the wholesale suppliers, the brands and marketers. We heard this week that Nick Price Apparel, a five-year-old niche player that markets upscale men’s sportswear to about 500 better resorts and clubs, is seeking an investor after its unnamed lead investor pulled out a month ago.
"We’re pursuing other financial options," Neil Stratford, a spokesman for Nick Price Apparel, told Styled to a Tee. "One of which might be to not move forward. Right now, we’re honoring all commitments while seeking financial banking. It’s a tough encomonic climate and we’re pursuing various options based on the loss of our lead investor. We’ve got a tremendous line. There’s already been interest from other players in the industry."
Those who visit this site know that golf apparel is an over-competed space with too many brands chasing too few retail outlets, be they resorts, private clubs, daily-fee venues or off-course golf specialty stores. The Nick Price Apparel operates at the better, pricier end of the spectrum, selling primarily to resorts and private clubs. As a stand-alone business based in Pinehurst, N.C., however, it lacks the efficiencies that many brands achieve through size or by being licensed to larger apparel firms, where economies of scale can be recognized in design, distribution, and SG&A. — Robert Lohrer
