MOSS ADAMS CAPITAL: Apparel and foowear market monitor highlights notable deals, stock prices and results.
Details on Industry Insight.
Here's the email message from Andy Tompkins to ASR customers and posted on the ASR Facebook page:
Dear Valued ASR Customer:
As you well know, the action sports industry has been undergoing profound change over the past several years. Recent consolidation among major brands and even meaningful changes in the retail environment has significantly altered the landscape.
As a direct reflection of the marketplace, the ASR shows have experienced the cause and effect of these market shifts. We have worked diligently to evolve the format of each show to keep ASR, the industries largest west coast trade shows, ahead of the changing economic environment while also meeting the evolving needs of this industry.
Although this has been a particularly challenging period of adjustment for the market, we are confident the industry will thrive and continue to evolve for years to come. The action sports lifestyle has huge consumer appeal and favorable youth demographics along with leading, creative and successful brands and retailers.
However, given the competition among key brands and the consolidation among retail shops, it appears for now, to be mostly a market share battle for floor space.
This dynamic, combined with tight credit markets, has been hard on the new, smaller or up-and-coming brands as well as many independent surf, skate and boutique retailers. We expect this consolidated and competitive situation to continue to characterize the action sports industry in California for some time to come.
Given these fundamental changes, it has proven to be increasingly difficult for the ASR shows in San Diego to serve the new needs of the action sports marketplace. Therefore, we are indefinitely suspending these events.
We recognize, however, the continued need for brands in the market to not only maintain strong relationships and partnerships with current retailers but also to seek prospective new domestic and international retailers with which to grow.
To this end, we will be increasing our efforts to expand the retail and brand base as well as the culture of the Outdoor Retailer Trade Shows in Salt Lake City to better serve the growth needs of the action sports communities.
On page 2: More about the Outdoor Retailer show and outdoor market