What Have We Learned?

by Desane Blaney, AGM Executive Director

At our January Retail Conference, James Dion, keynote speaker said "May You Live in Interesting Times." Based on the events of the past 12 months, indeed we do! We witnessed a seismic shift in consumer behavior and spending which resulted in high inventory levels in the shops and cancellations in the industry. Eventually the panic subsided and retailers acknowledged the need to "change the way they do business to stay in business."

An on-line survey of our merchandiser members conducted this week reveals that while sales are still sluggish, inventory levels now correlate to actual activity. Planning sales and inventory levels on current trending has made a difference. It is important to note that 42.3% members report inventory levels are lower than usual and 41.6% say levels are just about right. Only 16.1% are experiencing higher than usual inventories. These figures represent a significant improvement in what happened last year at this time when 37.1% of respondents indicated levels were higher.

Members need to continue monitoring their stock-to-sales ratio to ensure "just in time" and not "just in case" deliveries of merchandise. Fresh goods need to flow and seeking out products that give the best margin will result in better profitability even if overall sales are lower.

In this issue of the AGM e-Tailer:

• AGM Members Can Plan for Profit at the 2010 PGA Merchandise Show by Sherry Major
• Notice of the Annual Meeting and Election of Officers/Directors
• What's the State of Golf Retail?
• Tis the Season to Shop by Emily Gifford
• AGM Members' Creative Ideas to Generate Interest and Increase Sales for the Holidays
• Golf Datatech Report by Suzie Phillips
• National Rounds Played Report and Key City Specifics
• New Members
• Member News

Click here to view this month's AGM Photo Gallery

AGM Members Can Plan for Profit at the 2010 PGA Merchandise Show

by Sherry Major, PGA Golf Exhibitions

The scope of the 57th PGA Merchandise Show is far-reaching. Influential golf manufacturers will exhibit, international leaders will address key industry issues, timely education seminars and relevant best practices will be offered, new golf employment initiatives will be launched and professional networking will build important relationships as a blueprint for industry growth in 2010 will be established at the PGA Merchandise Show, Jan. 28-30, 2010, in Orlando, Fla.

"In planning the 2010 PGA Merchandise Show, our goal is simple - offer engaging content delivering real-life value to every type of facility and golf professional, so that when an attendee returns from the PGA Merchandise Show they can produce an immediate, positive impact on their business and the health of the game overall," said PGA Worldwide Golf Exhibitions Group Vice President and General Manager Ed Several.

The 2010 PGA Merchandise Show will include:

1,000+ Golf Vendors & the Opportunity to Explore What's New
More than 1,000 golf companies all under one roof to personally meet with market leaders and discover emerging companies new to the market.

• Top vendors include: Callaway Golf, Titleist, PING, Cleveland Golf/Srixon, Fairway & Greene, E.P. Pro, Zero Restriction, Greg Norman Collection, Under Armour, Gear for Sports, Callaway Apparel, Ahead, Club Car, Wilson Golf, Mizuno, Bridgestone Golf, Adams, Imperial Headwear, Antigua, E-Z Go, Cutter & Buck, Polo/Ralph Lauren, Divots Apparel, Yamaha (see updated list at www.pgashow.com).

65+ Education Seminars & Pro-to-Pro Best Practices

• More than 65 educational seminars including: "Technology for Player Development Programs," "PGA World Junior Player Development Strategy," "Where is the Golf Property Market Now?"
  
• Participate in Pro-to-Pro best practice sharing forums in merchandising, teaching, management and more - all designed to provide golf professionals with peer-proven ideas that give them the edge to be the best experts in the game and business of golf.

Outdoor & Indoor Demo Days - Largest PGA Professional Testing In The World

• Outdoor Demo Day on Wednesday, January 27th features more than 90 top golf companies within 100+ hitting bays, practice greens and the vendor village of the 42-acre practice facility of Orange County National Golf Center.
  
• Indoor Demo Days features a scalloped design with 47 hitting bays, two putting greens and a practice pitching area for personally testing the latest products right on the Show floor.

Keynote Presentations & Program Introductions

• Global golf leaders will address issues impacting golf including international growth initiatives, U.S. government legislation impacting golf, the USGA Grooves Ruling, social media applications to drive golf revenue, the women's golf movement, plus teaching & merchandising best practices. Leading manufacturers will offer new profit-making programs including club fitting, ball fitting and short game revenue programs to meet the needs of every size facility.

Inaugural Career Fair

• Major industry employers on hand to conduct interviews.
• Resume building and career workshops.
• PGA presentations on "Your PGA Blueprint," new PGA employment programs, plus PGA Career Counselors on hand to provide immediate employment assistance.

Industry Special Events & Networking

• AGM Product Preview, Wednesday, January 27th, Orange County Convention Center. On the eve of the Show opening, the Association of Golf Merchandisers will host their Annual Product Preview & Buyers' Reception featuring a preview of products and services by AGM Vendor Partners and an industry reception.
• PGA Awards Night, Thursday, January 28th, OCCC. The PGA of America presents their most prestigious national awards at PGA Awards Night including the First Lady of Golf Award, PGA Professional of the Year, PGA Merchandisers of the Year, plus additional national award winners.
• NEW Industry Concert, Friday, January 29th, OCCC featuring an international 70's Rock Band sensation - free to all show attendees.

AGM members may register for free in advance of the Show, take advantage of early travel discounts and find detailed event information at www.pgashow.com.

Notice of Annual Meeting and Election of Officers/Directors

The annual membership meeting of the Association of Golf Merchandisers will be held on Wednesday, January 27, 2009 from 12 noon to 1:30 p.m. at the Orange County Convention Center in Orlando, Florida.

The Nominating and Election Committee, chaired by immediate past president Vicki Bernstein and consisting of Stephen Cryan, Kathy Denton, Jackie Jacquemoud and Amy Lee Olson, presented the following slate of candidates for election to the Board of Directors:

• President - Ken Morton, Jr. - Morton Golf / Haggin Oaks GC, Sacramento, CA.
• Vice-President - Darcy Ryan - Congressional CC, Bethesda, MD
• Secretary / Treasurer - Tracy Moffatt - K & K Consulting, Naples, FL
• Northeast - Sheryl Bindelglass - Sheryl Golf, Martinsville, NJ
• Southwest - Patrick Casey - Brentwood CC, Los Angeles, CA
• North Central - Cary Cozby - Wichita CC, Wichita, KS
• Mid-Atlantic - Caroline Basarab Dennison - The Sea Pines Resort, Hilton Head, SC
• Southeast - Dan Gawronski - La Playa Resort, Naples, FL
• South Central - Julie Kizzire - La Cantera / Troon Golf, San Antonio, TX
• Canada / International - Leigha Main - Green Grass One, Mississauga, ON, Canada
• Canada / International - Rob McDannold - King Valley GC, King City, ON, Canada
• Mid-West - Brian Morrison - Olympia Fields CC, Olympia Fields, IL
• Pacific / Hawaii - John Nosek - The Golf Courses at Incline Village, Incline Village, NV
• Rocky Mountain - Sharie Racine - Castle Pines GC, Castle Rock, CO
• New England - Sam Wiley - Wee Burn CC, Darien, CT
• Northwest - Becky Wilkins - Retail Management Associates, Sunriver, OR

Members who are unable to attend the meeting may request a proxy ballot by contacting AGM Headquarters at info@agmgolf.org.

What's the State of Golf Retail?

AGM merchandiser members were recently asked to complete a short questionnaire to give us a snapshot of the state of business at their facilities.

Here's what they had to say:

• Compared to this point in time last year:
  65% reported lower sales
  21.9% - about the same
  13.1% - higher
• If lower, by what percentage?
  Lower / 15.5%
• If higher, by what percentage?
  Higher / 12.3%
• Has any one classification been affected more than another?
  Yes / 55.5%
  No / 44.5%
• What classification has been affected more than another?
  42.6% reported Hardgoods was most affected
  39.8% - Men's
  17.6% - Women's
• Rounds of golf - 2008 compared to 2009:
  37.9% reported lower rounds
  43.2% - about the same
  18.9% - higher
• Guest play - 2008 compared to 2009:
  58.1% reported lower guest play
  25.6% - about the same
  16.3% - higher
• Inventory levels:
  42.3% reported lower levels of inventory
  41.6% - just about right
  16.1% - higher than usual
• Have you viewed new lines for Spring delivery?
  Yes / 92%
  No / 8%
• Have you made firm commitments (placed orders) for goods?
  Yes / 86.1%
  No / 13.9%
• Are you withholding orders to submit at a later date?
  Yes / 52.2%
  No / 47.8%
• Are you planning to attend the PGA Merchandise Show in Orlando?
  Yes / 78.9%
  No / 21.1%

In next month's AGM e-Tailer, we'll outline what steps some of the best merchandisers are doing to improve their business model.

Tis the Season to Shop

by Emily Gifford

We adopted a new slogan for the holidays - "Tis the Season to Shop the Shoppes at Boca West." As a private club in South Florida, we are surrounded by numerous discount retailers who spend millions of dollars in advertising which is clearly not in our budget. We have, however, taken an aggressively creative approach to promoting our shop and reaching out to our members and customers this year.

Our marketing initiative has created brand recognition for our retail operation. In today's economy, the reality is that price sensitivity can easily divert business from our golf shop to a competitor; therefore, we found it critically important to create brand awareness through advertising and implementing programs to improve and build upon customer loyalty.

"Tis the Season to Shop the Shoppes at Boca West" is at the top of every advertisement that goes out to the membership whether it be a TV ad, our monthly magazine article, an e-mail blast or an update on our retail website. Additionally, we have also created our own vendor signage throughout the golf shop featuring the slogan, vendor logo and a professional photograph of the merchandise. The signage created a feeling of vendor exclusivity as it appears as though vendors have created the signage specifically for our shop.

We also initiated an "I Didn't Know That..." marketing campaign aimed at reminding our membership of the extent of merchandise and services available in our shop. For example, "I Didn't Know That... the golf shop has SPF 50+ sun protective golf shirts" or "I Didn't Know That...Boca West will be hosting the 1st Annual Junior Golf Demo Day in December."

Other programs we have implemented to increase sales include birthday certificates and gift with purchase. Every member receives a birthday card with a certificate for $25 off a purchase of $100 or more. Incrementally, the member who purchases $100-$199 receives a sleeve of logo balls and purchases of $200 or more receive a dozen logo balls as a gift with purchase promotion.

Our marketing campaign and promotions have significantly increased the traffic flow in the shop and have accounted for a large portion of our sales in a challenging economy.

Emily Gifford is the Director of Retail at Boca West CC in Boca Raton, FL.

AGM Members' Creative Ideas to Generate Sales for the Holidays

The National Retail Federation (NRF) projects 2009 holiday sales to be 1% lower than in 2008. If the projection holds, holiday sales, which represent the months of November and December, will represent $437.6 billion.

Early indicators of the mood of the holiday season will be measured in the activity of both Black Friday and Cyber Monday. Traditionally, Black Friday was coined as the day of the year that retailers went from being in the red (debt) to being in the black (profit).

However, according to the NRF, "Black Friday is known to consumers as the ceremonial kickoff to the holiday shopping season, an important day for retailers to bring shoppers into their stores with sales and promotions. Cyber Monday is the on-line equivalent to Black Friday."

So what's happening in the golf shops? Many members are hosting a Holiday Open House with hors d'ouvres and libations featuring merchandise specials, free gift wrapping, free local delivery, as well as a packing & shipping service.

Other ideas to drive traffic and sales for the holiday season include:

• Joe Angelino, Grand Cypress Resort, Orlando, FL: Golfers can shop their way to lower or even free green fees depending on how much they spend in the shop. We also have a holiday sale that we promote via direct mailings, e-mail blasts, texting, Tweeting and Facebook.
• Larry Dornish, Muirfield Village GC, Dublin OH: Every Saturday between Thanksgiving and Christmas, we are having a selected Vendor Day. We have partnered with a local ski shop that will set up for one day and offer our skiing members the opportunity to see what's new.
• Ashelynn Falkenberg, Robert Trent Jones Golf Trail, Birmingham, AL: Hello Social Marketing! We implemented a Facebook page for each of our locations and are posting specials.
• Katherine Gull, Lady Golf Classics, Portland, OR: Thinking a little differently this year to drive more traffic - purchased an advertisement in the local newspaper's "Gift Guide" which runs the Friday after Thanksgiving - cost $656.
• Jackie Jacquemoud, St. Andrews Golf/Las Vegas Golf & Tennis, Las Vegas, NV: We are embracing Gorilla Marketing this holiday season - arrow twirlers on street corners and specialized banners!
• Linda Mortarotti, Retail Consultant, Northern California: In addition to our annual Sip and Shop, and in an effort to lower our inventory levels prior to year's end, we will add an employee sale the week before Christmas which will allow the staff to take advantage of some tremendous discounts on merchandise as they shop for family and friends.
• Dale (Big Daddy) Robbins, Dale's Winning Edge, Knoxville, TN: Book signing with Pat Summitt, special in-house guests, photos with Santa & his Reindeer - many promotions to drive traffic and stimulate sales.
• Vanessa Salomons, Shaughnessy Golf & CC, Vancouver, British Columbia: This year we produced our BIG Book of Christmas ideas in catalogue form and mailed it to the members. They get a comprehensive look at what's available and can call us to purchase items.
• Mark Thush, Desert Mountain, Scottsdale, AZ: We're embracing Black Friday and extending the incentives and discounts through Saturday. We'll also offer a gift with purchase for December sales.
• Faye Whade, Glenmoor CC, Cherry Hills Village, CO: We coordinated our golf shop promotions with our Food & Beverage department to attract the social members. We have stocking stuffer items wrapped and ready to go. We promote no waiting in line, free wrap, no hassles with parking, pack & ship and free delivery within the city. We're also using e-mail and e-magazine with links to our website.
• Mark Wheatley, On-Site Golf, St. Joseph, MO: We're stepping out of our store (literally) and opened a satellite seasonal store at the local mall to increase sales and to introduce folks to all the merchandise we carry in our main store throughout the year.
• Angie Young, Ballenisles CC, Palm Beach Gardens, FL: We have a diverse membership and therefore, we decided to abandon our one Holiday Sale and offer both a Hanukkah and a Christmas sale each for four days. We're offering a Ladies Only Shopping Night this year.

Golf Datatech Report

by Suzie Phillips

Total Units & Dollars
On & Off Course Shops Combined
Total Year to Date Through September 2009
2008 Compared to 2009

Product	Total Units	Total Dollars	Average Price
GOLF BALLS	(000's Doz.)	(000)'s Omitted	Per Dozen
2008	16060.37	$431,530	$26.87
2009	14227.06	$397,882	$27.97
Percentage Change	-11.4	-7.8%	4.1%
WOODS	(000's Units)	(000)'s Omitted	Per Club
2008	3839.78	$650,327	$169.37
2009	3401.32	$557,558	$163.92
Percentage Change	-11.4%	-14.3	-3.2%
IRONS	(000's Units)	(000)'s Omitted	Per Club
2008	6427.96	$461,287	$71.76
2009	5593.52	$384,783	$68.79
Percentage Change	-13.0%	-16.6%	-4.1%
PUTTERS	(000's Units)	(000)'s Omitted	Per Putter
2008	1109.58	$151,225	$136.29
2009	914.65	$125,472	$137.18
Percentage Change	-17.6%	-17.0%	0.7%
WEDGES	(000's Units)	(000)'s Omitted	Per Wedge
2008	888.96	$82,488	$92.79
2009	863.61	$80,314	$93.00
Percentage Change	-2.9%	-2.6%	0.2%
GOLF SHOES	(000's Units)	(000)'s Omitted	Per Pair
2008	2719.74	$229,455	$84.37
2009	2441.31	$204,213	$83.65
Percentage Change	-10.2%	-11.0%	-0.9%
GLOVES	(000's Doz.)	(000)'s Omitted	Per Glove
2008	924.34	$141,339	$12.74
2009	836.94	$127,805	$12.73
Percentage Change	-9.5%	-9.6%	-0.1%
GOLF BAGS	(000's Units)	(000)'s Omitted	Per Bag
2008	1071.70	$128,321	$119.74
2009	899.58	$112,934	$125.54
Percentage Change	-16.1%	-12.0%	4.8%

For more detailed reports covering retail sales for golf products including apparel contact Golf Datatech, sphillips@golfdatatech.com or call 888-944-4116.

National Rounds Played Report & Key City Specifics

Rounds were up by 4.1% for the month of September 2009 and up by 0.5% year-to-date. The findings represent 4,225 reporting courses.

Percentage Change in Rounds Played Volume

2009 vs. 2008	September	Year-to-Date
U.S.	4.1%	0.5%
Public	4.6%	0.8%
Private	2.5%	-0.7%
Pacific	-2.3%	0.3%
Mountain	-1.7%	-0.5%
West North Central	6.6%	5.0%
East North Central	10.2%	1.5%
South Central	-0.9%	0.4%
South Atlantic	2.5%	-2.4%
Mid-Atlantic	4.2%	0.3%
New England	13.5%	1.2%

Key City Specifics

2009 vs. 2008	September	Year-to-Date
Washington-Baltimore	8.3%	-0.9%
Orlando	-0.4%	-3.7%
Naples-Ft. Myers	2.6%	-0.3%
Atlanta	-19.9%	-8.3%
Hilton Head	15.8%	-0.2%
New York City	7.9%	-2.5%
Chicago	21.4	2.4
Philadelphia	0.9%	-3.7%
St. Louis	6.0%	7.3%
Houston	28.4%	3.5%
Los Angeles	-2.0%	-1.1%
San Diego	-0.3%	0.8%
Phoenix	-7.6%	-2.9%
Las Vegas	4.3%	1.8%
Seattle	-5.7%	-2.0%

The National Rounds Played Report and Key City Specifics are a joint effort of Golf Datatech, National Golf Foundation, PGA of America and the National Golf Course Owners Association.

New AGM Vendor Partner Members

The following golf companies joined the AGM during this past month. Please support these new members as well as the many other AGM Vendor Partners. Click here or go to the Vendor Partners page to view all of the fine offers and services available for AGM members.

Daphne's Headcovers

Jane Spicer, President/Co-Owner

Daphne's Headcovers was founded by Jane Spicer and her mother, Daphne. Each Daphne Headcover exhibits the Daphne Difference. From conception to completion, each and every headcover is created with an eye on quality, function, form and attention to minute detail. All of our headcovers bear our label, factory phone number and Daphne's name. Daphne's Headcovers will be your partners in displaying marketing and caring for your customers. Give us your suggestions, tell us your animal stories and influence our next creation! We are here and we are listening.

For additional information, visit their website at www.daphnesheadcovers.com or contact Jane Spicer at 602-279-7457.

New AGM Merchandiser Members

Please welcome the following merchandisers who joined the professional ranks of the AGM this past month. For contact information on all of the AGM members, please visit the Members Only pages at www.agmgolf.org.

Paul Anderson

Student, PGM Program at Arizona State University - Chandler, AZ

J.D. Clayton

Student, PGM Program at Arizona State University - Mesa, AZ

Paul Clivio

PGA Head Golf Professional/Dir. of Retail Operations, St. Andrews Country Club - Boca Raton, FL

Preston Easley

Student, PGM Program at Arizona State University - Mesa, AZ

Sarah Freeman

Student, PGM Program at Arizona State University - Goodyear, AZ

Kevin Hildebrand

Student, PGM Program at Arizona State University - Gilbert, AZ

Brandon Iott

Student, PGM Program at Arizona State University - Gilbert, AZ

Christine May Jaramilla

Merchandiser, The Los Angeles Country Club - Los Angeles, CA

Scott McAulay

Student, PGM Program at Arizona State University - Gilbert, AZ

Donna Mulvey

Retail Buyer/Manager, St. Andrews Country Club - Boca Raton, FL

UK - Je Sung

Student, PGM Program at Arizona State University - Mesa, AZ

Member News!

• Patrick Casey - a past president of the Southern California PGA Section was named a Honorary Life Member. Patrick is the Director of Golf at Brentwood CC in Los Angeles, CA.
• Susan Roll - owner of the Carlsbad Golf Center is the recipient of the Horton Smith Award for the Southern California PGA Section.
• New Arrival - Brianna Stumpf recently welcomed the arrival of a baby boy. Brianna is the Merchandise Manager at the Redstone GC in Humble, TX and the 2005 AGM Top Retailer.

The AGM eTailer is published monthly for the members of the Association of Golf Merchandisers. To submit news, articles and information for an upcoming edition of the eTailer - please contact us at (602) 604-8250 or click here.

To print this newsletter, click here for a printer-friendly version.