Memories came flooding in. Buying my first pair of ski boots after 2 hours of special fittings by the salesman. Meeting the President on a plane to Mammoth and being introduced to Vistage by him. Stopping in to get a new pair of running shoes every couple of years, because they could explain why this pair and not that one.
In 2014, they were purchased by a VC firm out of the east coast who told the staff on Friday that it was all coming to an end.
How do I know when they heard? We got in the car and drove to the flagship store yesterday afternoon. It was crowded like Christmas time. 10% discount signs were posted throughout the store. Customers groused over the small discounts. Still, the check out line wound all the way back to the shoe department. I thought those VC guys knew how to squeeze the most out of the closure. I wondered why they hadn’t done a better job managing their new asset.
After they took over, they cut staff, so you could no longer get the individual attention Sports Chalet had been known for. Prices were high and everyone could compare them on their phone to Internet providers. When I finally got up to the register, the cashier told me he had worked for Sports Chalet for over 18 years. Over 1200 people will be laid off at the end of the month.
Logically, we know that this is what is happening to retail. Sports Authority just went into Chapter 11. Pac Sun just went into chapter 11. Quicksilver filed in 2015. Clothing sales were driving profits for Sports Chalet and customers had changed their purchasing to quick fashion stores like Forever 21, H & M and Zara, or on-line. Even as we watch retail decline, and personally enjoy the benefits of on-line convenience, it is sad to see stores that we knew and possibly loved disappear. With Sports Chalet closing 47 stores there will be more vacant space, more unemployed, and a hole left in our community.
How are you evaluating changes in trends in your industry? Are your customers buying from other suppliers because they have something you don’t carry? Or, is it easier to buy through a different channel? What in the story of Sports Chalet feels uncomfortably familiar? Talk about this with your management team this week and see if there is one action step you can take ASAP to improve your market position this year.
Illustration courtesy of yawzaoffers.com