Fort Walton Beach Council agenda — 06-17-08 special agenda — reading text

1970s, first at the store he co -owns in South Easton, Mass., Joe & Leigh' s Dis- count Golf Pro Shop, and now online at 313alls. com. " The numbers are telling the story that dollar sales are up, but in our store, the numbers have leveled off," says Bader. " You could walk out my door and go to any one of 13 Dick' s Sporting Goods and buy equipment. That' s put a lot of THE TOTAL NUMBER OF OFF -COURSE RETAIL LOCATIONS independents out of business. We con- sider it a victory that we' ve survived." HAS SHRUNK BY 25% IN THE LAST FIVE YEARS In the same way the equipment manu- facturing business is distilling to the four or five largest companies —Callaway, Ti- business forecasts don' t tell the full story. tleist, TaylorMade, and Nike accounted for 65 %, or $4. 1 billion, We do a pretty good job keeping score both on and off the of total golf equipment sales in 2007 —small retailers are being course in the golf industry," says Joe Steranka, CEO of the PGA pushed out by big -box stores like Dick's and megaretailer Edwin of America, which represents 28, 000 club professionals. " Our Watts. According to Longitudes' retail data, the number of off - figures tell us participation is up 20/c [ NGF, 2000 to 20o6l, and course retail locations has shrunk by a staggering 2507c in the last we' ve had real economic growth in the game. We went from a five years. But the square - footage devoted to retail golf equip- 62 billion industry in 2000 to $76 billion in 2005. We' ve grown ment sales has increased by 7% over the same period. from a boutique industry to a real industry:' A growing —and harder to measure —piece of the equipment pie Although surveys like the ones done by Longitudes and Golf is the used -club market, flourishing online through auction sites 20/ 20 —a group that includes the PGA, PGA Tour, LPGA Tour, like eBay. " I see our brick -and -mortar business staying healthy, and USGA—are consumer samples or estimates of market size, though not trending up, but online sales and the secondary mar- net sales figures from the major manufacturers reflect the total ket are very promising," says Bader, whose online used- equipment of real merchandise changing hands. Callaway sold $912 million store sells more clubs on eBay - 400,000 last year —than anyone. in clubs in 2007, a 13% improvement over 2oo6 and its most ever. We' re all chasing the same core group of avid players, but so much Fortune Brands' golf division, which includes Titleist, Footjoy, of golf is consumables—things like balls —and that' s a function of SPORT 2003 2007 % CHANGE COURSETYPE 2003 2007 % CHANGE millions)' ( millions)' Snowboarding & 6 10. 1 53.0 Bowling ! Skiing • - 19.0 Participants, defined as playing at least once a year Data: National Sporting Goods Assn. Some courses are counted in more than one category Data: Longitudes Group BUSINESSWEEK I GOLF DIGEST I MAY 26, 2008 Page 58 of 59  r 04 0 075 of kids since 200o, and CEO Joe Louis TIME, MONEY, AND SKILL ARE STILL THE BARRIERS TO Barrow Jr. believes the same kind of ini- tiative could work to bring adults to the ENTERING THIS GAME," SAYS THE PGA' S JOE STERANKA sport. " I' d partner with the 16, 000 golf courses out there to offer a set program for adults to learn the game and develop rounds played. I' ve never seen a cycle like this one." a love for it;' says Barrow. "We found that if you introduce peo- Industry experts joust about the validity of participation sur- ple to the game in a set curriculum, then ask them to come back veys - and even the golf business' prognosis - but they agree on with people they learned with, they push through that learning one point: The game needs to find more players and encourage barrier that exists at the start" them to stick with a sport that can be daunting for beginners. If the recruit„} glat.da:iues re. maple take If you go back and read state -of- the -game stories from the up tba4awfi,! Lviaa't,boQ& i i atom Ome*%4 hasbeen 1920S, 1940s, and ig6os, they have the same industry focus," over_ e aoo` poWifffonave, says Steranka. " Time, money, and skill are still the barriers to entering this game. We asked people to rate what the most im- an paweWal p yerMP!,11i ttitm. ftli ' ptayers dontt portant element of the golf experience was in terms of enjoying k t e} atYl€ ea er recee e ti+ tyrt fees at country it, and it's hitting good shots" clu with#hese e laal ] alters do. To that end, the PGA started its Play Golf America program in Golf is not beginner -friendly," says Haney, who is spending 20 04. One aspect of the initiative connects potential players with more time at his International Junior Golf Academy in Hilton teachers through its Free 10- minute Lesson Program (started by Head, S. C. " Everything is designed for people who already play. GolfDigest and the PGA), with hopes that they develop a long- Juniors are a noble cause. But what we need are 50 - and 6o -year - term interest in the sport. " When we track the people who come olds to get into it, because they' re real, live consumers. They have in for a free lesson, 3007c are new customers to the facility," says an interest in playing, but nobody's making it easier for them." Steranka. " Each of those facilities that participates ends up get - How well the industry makes those aging boomers feel wel- ting a $2, 400 lift from the program, in terms of what those people come will define the game' s next five -year phase. Fail, and it's a spend on green fees, lessons, or equipment" long wait - and more course closings - before that generation of The First Tee program has introduced the game to millions juniors Haney mentions get their own checking accounts. i BW with reminder dots to show the cor- DRIVER ED rect hand location, and every shot is hit from a rubberized tee and mat that helps a player' s alignment. The First Tee hopes to draw kids to golf in gym class The golf component was designed to fit seamlessly into the standard phys -ed curriculum developed by Golf organizations and manufactur- golf instruction, rules, and etiquette. the National Association for Sport & ers have spent millions to draw young We want to be where the kids are," Physical Education. Kids get multi - people to the game - and create the says First Tee CEO Joe Louis Barrow week exposure to basic golf move- next generation of golfers. But it Jr. " One of the broad challenges facing ments, rules, and etiquette, just as might be grade - school gym class that the sport is that it' s elective. Unlike they do in basketball or kickball. finally changes the math. going outside and tossing a baseball Count the kids who are projected The First Tee, a nonprofit orga- or shooting baskets, you' ve got to to be introduced to the game through nization founded by the PGA Tour, make a commitment to play golf. The the National School Program - 3. 5 to 4 LPGA, Shell Oil, and others and that' s National School Program is building million in 4, 000