Golf Shoe & Club Maker Sales Down 26% Year on Year
Recently reported figures for Callaway are not looking too good this quarter. Total sales down 26%; US sales down 23% and international sales down 28%. They have cut their workforce by 10%. But they are still hoping to grow market share in the rest of the year. But it doesn’t look to me that they are saying how? (Nike’s last results were only 2% down.)
One way would be to either discount to fight a depressed economy spending pattern or to focus on lower priced golf shoes/clubs and fight for market share that way whilst keeping saleswithin the brand. But both compress sales – after 2007 being down 5% industry wide and 2008 as yet exactly defined but looking like 10% down across the board.
Maybe sell golf shoes on credit? Not so stupid, trust me!
I know a thing or two about credit and retailing in tough times from my pre Golf Shoes Blog days and this could be the way. No deposit – even pay nothing for six months or other schemes? (Repossession would be a problem for worn shoes but a name and shame campaign could see off non-payment.) However credit sales could mean escaping the discount route and can add useful profit.
PS The golf shoe shown is the Callaway X Series Hyperbolic Golf Shoe, which retails at about $120.
