Golf Business News – America’s golf market challenges with improved trade performance

The UK’s leading golf retailer, American Golf, has today provided an update on its trading performance (February – August 2024), highlighting the increase in sales and market shares, as well as the outstanding results of the newly refurbished stores.

American Golf reports a 1.8% like-for-like (LFL) sales increase and a 1.4% LFL market share increase. The increase in sales was driven by equipment, clubs and shoes, which is a clear indication that the Producer’s aim to be a one-stop shop for everything a golfer needs continues to appeal to their core customers and new customers alike.

American Golf’s success continues despite a challenging start to the season, with wet weather conditions across the UK causing the average number of rounds played per course to drop by 8%, with the Midlands and North of England the worst (-12% fewer rounds and -13% sub-rounds respectively).

In the face of these challenges, American Golf has continued to invest in its national store. Through 2024, several key stores in American Golf’s 80+ portfolio have seen investment, through improved signage, top-to-bottom renovations and a continued focus on customer experience and service.

The American Golf Thurrock store, which has benefited from significant expansion and investment, has already reported a 35% increase in LFL. As part of the renovation, the store now has an additional custom-fit area with market-leading technology, multiple brands, and green installations. Similarly, the newly relocated Norwich store, which has been upgraded with additional custom fitting facilities, saw a 65% increase in LFL sales following the re-opening.

The business has included an increased focus on customer experience, engagement, and loyalty, such as targeted and personalized campaigns, investment in new ‘listening tools’, a new behind-the-scenes loyalty program, and an ongoing approach to treating all customers as VIPs. This has driven year-on-year increases in customer frequency (+2%) and average usage (+7%).

The business has also invested in its portfolio of specialist Brands such as Benross, Stromberg, Greg Norman, Fazer and Rife, providing golfers of all levels with a ‘good, better, best’ offering to suit all budgets. With the support of dedicated brand campaigns, industry product reviews and influencer involvement, each Brand continues to grow in sales and market share.

Nigel Oddy, Chief Executive Officer, American Golf said, “We are happy with the way we played even though the golf season has been delayed due to the unusual rainfall. Although the financial year has started slowly, we have seen strong results in the past months, and I am confident that we will continue this growth until the end of the year. I’m very proud of the progress we’ve made in improving our stores and customer experience – this remains our top priority in 2024 and beyond. Investing in new technology, dedicated resources and maintaining our high standards of customer service will keep the brand in good shape throughout the year.”

Along with individual stores, American Golf has invested in new and powerful partnerships, including its first-ever franchise with leading retailer GO Outdoors, to continue expanding the store’s offerings. A 3,000 square foot concession opened at GO Outdoors Gloucester in August 2024, with another store to follow in late 2024.

Nigel added: “Along with focus on our marketing initiatives, new strategic partnerships remain central to American Golf’s vision of being a ‘One Stop Destination for All Your Golf Needs’. Thanks to our exclusive Brands and partnerships with other big names in golf, helped by the good weather, we are confident that the golf season can be extended, and American Golf can support golfers through the winter months.”

In addition to the store’s offerings, American Golf also invests heavily in new customer acquisition, encouraging players of all ages, backgrounds and backgrounds to participate in the game. Part of this drive comes from the seller Game changers campaign, a targeted campaign designed to shine a light on the number of trail blazers that make golf accessible. Along with partnerships and sponsorships from individual game changers, a range of special offers and discount codes have been launched to target new golfers.

In response, new customer acquisition increased by 6% and sales of package sets (ideal for new golfers) and additional entry products all performed well. Another focus is Game changers the campaign is to increase the number of young golfers taking up the game, and in August alone – the sale of Juniors equipment has increased by more than a third compared to last year. This was aided by offering practice sessions for Junior golfers in all stores across the country during the summer holidays, as well as competitions and product incentives.

Summary

American Golf is improving trade performance, despite record rainfall at the start of the year, by investing in its 80+ retail portfolio, enhanced strategic partnerships, and its exclusive Brands.

The data shows that the average number of rounds of golf played in the UK fell by 8% in the first half of the financial year, impacting the retail golf market by more than 10%.

About American Golf

Founded in 1978, American Golf is the UK’s largest golf shop, dedicated to supporting and developing all golfers, regardless of their experience.

Comprised of 80+ stores and an online retail offering, American Golf employs more than 350 PGA Professionals and certified fitters who provide the most comprehensive, courteous custom fitting service available on the market today.

Offering a wide selection of golf clubs, equipment, apparel and footwear, American Golf stocks brands such as Under Armor, TaylorMade, Callaway, PING, Titleist, Adidas, and Nike. They also carry specialty brands like Stromberg, Greg Norman, Fazer, Benross, and Rife.

www.americangolf.co.uk

Weather data from Sporting Insights Ltd – 30/07/24. The information contained is collected from a sample of up to 200 subjects across Great Britain.

Market data is available from Datatech.