Tips for retailers

Outdoor footwear: The retail bestsellers

What does the average SA customer want when buying outdoor footwear? Genuine outdoor sports utility shoes, or lifestyle driven styles?

The array of answers to this question is intriguing.

Generally, the type of retail outlet would dictate who the targeted customer is, position itself, and structure the assortment and range according to the estimated needs and desires of the customer. Very few retail outlets can, however, keep their offering within rigid theoretical guidelines.

The main reason for this is the impact of the outdoor lifestyle trend on consumer culture. From a practical point of view, seasonality also plays a major role in the peaks and troughs of the various types of outdoor footwear.

GfK classifies six general types of outdoor footwear:

» Technical hiking
» Light hiking
» Outdoor multi-functional
» Outdoor sandals
» Water shoes

Technical hiking, the smallest market of the six in pairs sold, can generally be found in specialist stores around SA.

Light hiking has a wider distribution, appearing in various outdoor outlets, shoe shops and even the fashion chains.

Outdoor multi-functional and outdoor sandals are the categories where most of the above mentioned overlap occurs, with outdoor lifestyle offerings in specialist stores, chains and fashion outlets.

Water shoes are mainly supplied through sports stores and specialist chains.

The total outdoor classified footwear market size for 2008 was estimated at some 450 000 pairs through all channels, including retail, direct sales and farmer’s co-ops.

GfK tracked (Retail Market only) 356 000 pairs during the same year. This was up 4% from the 2007 number of 343 000 pairs.

Considering that the average retail price across all types was R392 in 2008, that meant that the turnover of the retail sector was almost 1.4-bn in outdoor shoes alone.

More recently, January to April comparisons between 2008 and 2009 show only a 1% growth in units sales, compared to an 8% growth in revenue.

This means the slow-down on sales volumes have been counteracted by an increasing price trend, where revenues are thus showing signs of linear growth.

Light hiking is well below last year’s levels and has had a difficult start to the year. These shoes normally sell in relatively higher price brackets — anywhere between R300–R1 000, but the April 2009 average was around R460, which is 10% higher than the April 2008 figure of R416. Light hikers tend to have a strong seasonality over the SA winter months.

Outdoor multi-functional, in contrast, have done very well so far this year. Normally selling in a similar price point to light hiking, average prices have not moved up, staying around R515 for April 2008 and 2009.

Seasonality in outdoor multi-functional is somewhat flatter, but still notable over winter, once again.

Outdoor sandals, dominated by two main brands and some house labels, has an extreme seasonal trend towards the summer months and holiday seasons. Average prices for these styles have declined from R228 in April 2008, to R211 in 2009.

Seasonal trends would indicate to some extent that the boots and shoes are being used for outdoor sport purposes.

However, more and more indicators of shifts in lifestyle preference and choices will be the key for growing retail share and sales.

A retailer’s total customer offering will need to encompass not only a rudimentary outdoor image and brand salience of footwear, but the total packaged outdoor lifestyle offering, reinforced through retail positioning, store layout, fitting, pricing strategy — and very importantly, knowledgeable staff who can relate, direct and advise the valued customer.