In the wake of a remarkable surge in outdoor gear sales during the pandemic, the outdoor gear industry finds itself confronting a new set of challenges. While some independent outdoor retailers are feeling the pinch, the demand for used gear is skyrocketing.
Bent Gate Mountaineering, a staple in downtown Golden for three decades, has weathered economic storms before. Yet, the store now faces stiff competition in an increasingly crowded outdoor retail landscape. The ubiquitous “HUGE HUGE HUGE SALE” banner hanging outside serves as a testament to the pressures gripping not just Bent Gate but other independent retailers as well.
The rollercoaster ride of the outdoor industry began during the pandemic when a wave of people, both seasoned enthusiasts and novices, sought solace in outdoor activities. This surge led to unprecedented sales for stores like Bent Gate and Golden Bike Shop. However, the euphoria was short-lived as the market became flooded with goods, triggering intense price competition. Direct-to-consumer sales from manufacturers and wholesalers further squeezed margins for independent retailers.
Ryan Mayer, general manager of Bent Gate, acknowledges the necessity of perpetual sales to stay afloat amidst this fierce competition. The challenge lies in striking a balance between offering competitive prices and maintaining profit margins.
The industry also faced headwinds from inflation, exacerbating the already precarious situation for retailers. Despite these challenges, industry veterans like Jon Dorn remain optimistic, viewing the recent downturn as a natural correction after a period of explosive growth.
REI, a giant in the outdoor retail sector, experienced significant setbacks, leading to layoffs and a shift in strategy. However, there remains a strong underlying desire among consumers to engage in outdoor activities.
In the midst of this turbulence, businesses like Feral Mountain Gear and Wilderness Exchange are thriving by capitalizing on the demand for used and discounted gear. Feral’s focus on offering quality used gear has positioned it for continued growth, with plans to expand into new markets.
Similarly, Wilderness Exchange has found success by subverting traditional retail models, offering consignment and discounted merchandise. However, they acknowledge the challenges posed by aggressive promotional tactics from vendors.
Despite the current downturn, industry experts remain confident in the resilience of the outdoor retail market. Economic indicators suggest a potential rebound in the coming years, fueled by increasing wages and GDP growth.
Ultimately, the allure of outdoor recreation remains undiminished. As Don Bushey of Wilderness Exchange emphasizes, the connection between people and nature is intrinsic and enduring. Regardless of market fluctuations, the call of the wild will continue to draw adventurers seeking solace and challenge in the great outdoors.