Adam Schupak files an interesting report in the August 9 issue of Golfweek about a significant drop in second quarter equipment sales. That's right, the second quarter, which is known as one of the most profitable, had Acushnet and Callaway citing double-digit declines. Schupak writes:
Retailers and analysts say consumer spending domestically has stalled over concerns about an economy wracked by foreclosures and soaring fuel prices. Adverse weather has limited rounds played in key areas, which also is affecting equipment sales, they say.
But what jumped out at me most is something we don't hear enough about...
Retailers also say they’re being hurt by shorter product life cycles. The growing practice of launching products in almost rapid-fire succession is conditioning consumers to wait, say six months, to buy a premium-priced driver because they know it will be marked down. That consumer behavior has become more pronounced during a sluggish economy.
“That mindset has come back to bite us,” (Mark) Marney (CEO of The Golf Warehouse) says.
