#pgatss

[bunkershotgolf]

Golf Retail at Two Club Lengths

By ED TRAVIS

Retailing has taken an unprecedented hit. According to the U.S. Census Bureau the Sporting Goods/Hobby/Musical category had 38% lower sales in April than in March and Adobe’s Digital Economy Index reported online purchasing increased 49% in April.

It is easy to see the most immediate task for all retailers is to figure how to take advantage of the “new normal,” whatever that may be.

As shelter-in-place restrictions are being removed stores of all sizes are faced with figuring out how to attract customers, perhaps in ways never considered previously. E-commerce was already a major factor but due to the recent health requirements the trend is sure to gain momentum. Consumers, many for the first time, are taking advantage of the inventory variety, ease of comparison shopping, speed of ordering and often lower prices.

According to one major golf retailer, PGA TOUR Superstore (PGATSS), the solution is continuing a customer-centered instore experience and doing business at “Two Club Lengths.”

Dick Sullivan, President and CEO of PGA TOUR Superstore, has a reputation for dynamic management that is readily apparent while leading the company for the past decade. PGATSS’s results and his leadership were recognized in 2018 when he was the first retailer to be elected chairman of the National Golf Foundation. We had the opportunity to ask him questions about the present retailing situation and what it means for his operation.

Ed Travis: With store closings forced by the efforts to contain transmission of the COVID-19 virus did PGATSS lay off employees? If so, will they all be eventually reemployed?

Dick Sullivan: Our number one priority remains health and safety of Associates and customers. After that our focus is on preserving jobs. We have not furloughed Associates or had pay cuts. Our vision and business strategy are driven by a long-term approach in everything we do. That means making good, smart decisions for our business for the months and years ahead.

ET: An online ordering program with Curbside Caddie pickup was initiated. Considering the circumstances do you consider it a success?

DS: Absolutely, we were still able to accommodate our customers in our local markets while the stores remained closed to the public. We conceived the Curbside Caddie idea and integrated it into our digital experience in less than 48 hours. It has represented approximately 25-50% of our total e-commerce orders since launch.

ET: During the stay-at-home period were hard goods sales hurt more or less than soft goods?

DS: There has been significant demand in the accessory’s category because the majority of our sales are being driven by people that are out playing golf or practicing at home. Not surprisingly, many Customers have bought training aids, push/pull carts and golf balls, etc.

375% reflects the increase in push/pull cart sales from April of this year, compared to April of last year. With nearly 95 percent of golf courses open across the US, many facilities have put in place walking only protocols. Golf is a game that offers many physical and well-being benefits. Walking nine holes of golf is equivalent to 5,000 steps.

What has been the consistent number one category of products sold online was clubs. Our online club sales were up 120% vs. prior year and we attribute this to excellent blended offering of both repositioned and new clubs. It’s interesting to note, we’ve seen a noticeable increase in women’s packaged sets being purchased. Soft goods have seen smaller comp increases during this time compared to hard goods.

ET: With approximately two-thirds of your locations reopened have there been problems for employees and customers with social distancing and other preventative measures?

DS: We’ve done a good job of “doing the right thing.” Sanitation supplies, on the way in and out of the store, signage to reinforce social distancing, Associates wearing masks and we provided them with individual hand sanitizers in addition to multiple sanitation stations throughout the stores. We are also regularly wiping down clubs that are being demoed, golf balls that are being used in the simulators and on the putting green, and high traffic areas and surfaces.  

We implemented a new ‘Starter’ position to help customers navigate the rules and to clean any equipment that is brought in for repairs or regripping. It gives the customer an opportunity to ask questions and hear what we are doing to help make them comfortable and safe.

We have also established a que line at check-out and labeled spacing to ensure social distancing guidelines.

ET: Will the costs of extra cleaning, etc. result in increased prices?

DS: No. Putting people first has always been our top core value. The health and safety of our Associates and customers will always be our top priority. Comfort, care, and cleanliness, has been our operational approach driving us during this time. For example, we have secured disposable masks, reusable masks, gallons of hand sanitizer, individual hand sanitizer, gloves and set up 450 hand sanitizing stations.

We also set up social distancing protocols reminding people to stay “two club lengths” (six feet) away from each other. And, then there is the signage throughout our stores and at the Store Support Center reminding people to practice social distancing, frequently wash hands, etc., all based on CDC and other government guidelines and recommendations.

ET: Before the closings, the growth trend in both instore and online sales had been extraordinarily strong. What special promotions or other initiatives will be done to reestablish that growth?

DS: We will continue to manage online business as we have working different exclusive promotions and offers. For the stores, we will celebrate Father’s Day with our usual focus on gifts for Dad and special offers. After Father’s Day, we will assess the results including what we heard from our customers and Associates and then plan the balance of the year as needed. I think it goes without saying that we are moving into uncharted territory with the season shifting to the second half of the year. The typical playbook is not going to work in 2020 and we want to be as agile and responsive as possible.

ET: Instore sales at the Altamonte Springs, Fla. location have shown a very significant increase since reopening May 4. What were the contributing factors and have similar results been seen in other locations?

DS: We have seen a significant year over year sales increase since re-opening our Altamonte Springs location. This is due to a couple of factors. The first being that a local competitor closed their location prior to and unrelated to the COVID-19 pandemic.  Secondly, the Altamonte Springs location relies more on its residential community rather than tourists. As you know, when they rank the top cities in the US for golf, Orlando is always in the top-10. http://theaposition.com/golf/courses-and-travel/1526/the-a-list-what-is-the-best-golf-city-in-the-us

ET: Given the depressed conditions some retailers are permanently closing locations while PGATSS is opening a new store in Palm Beach Gardens, Fla. What is your thinking about such expansion right now and are more new store openings planned in the near future?

DS: Our brand has tremendous momentum and many markets that are not yet served. We support a game that is well-positioned to serve a higher purpose – particularly right now. Our growth plans have not changed. Not only Palm Beach opening, but we will open a store in Columbus, Ohio the week of the Memorial.

ET: An attraction and strength of PGATSS stores has been the “experience” consumers get when making a visit. How do you see that going forward?

DS: We have a very strong brand and history of consistently delivering positive experiences and trust for our Customers. Customers have thanked us for creating a safe environment for them to continue to enjoy shopping in our store and leveraging all that our store has to offer – putting green, hitting bays, fitting studio and more. We have made many enhancements to continue to facilitate the in-store experience that our customers enjoy. Their feedback and input have validated that they feel comfortable, are easing back in gently but looking forward to getting back into the store.

ET: The stay-at-home rules and retail shut down resulted in an immense increase of online transactions. According to some analysts this means basic changes to retailing in general as many shoppers may have simply gotten the “online habit” rather than making trips out to stores. Do you share that view, or do you see retailing returning with a similar buying pattern as it has had in the past due?

DS: We expect to continue to have strong online sales and will continue to elevate the digital experience – as we always have. That said, given the strong retail results we’ve been experiencing, as well as the feedback and insights directly from our Customers over the past month, we believe that our retail experience will be an opportunity for consumers to get custom fit and connect with others over their shared passion for the game, as well as continue to be mindful of their own self-care – mind, body and spirit. Golf is the game that provides that solution.

[swingjuice]

BREAKING: The early returns are in from PGA Tour Superstores @pgatss and SJ Tees are a SMASH! So Amazing. We are also adding 9 (NINE) more locations to the mix over the next few weeks ( Sup Jacksonville, Delray Beach, Naples, N. Myrtle Beach, Tucson, Chandler, Phoenix #2, Palm Desert, and Plano TX). We Can't Thank You guys enough for the continued support out there, You guys ROCK! . . . . . . . . . . . . . . . . . . . #golf #golflife #instagolf #pga #pga365 #golflifestyle #golfer #whyilovethisgame #golfporn #golfcourse #golfisgreat #golfislife #swingjuice #golfandtacos #golfishard #golfbro #thegolfstagram #pgatour #golfandhiphop #golf #mastersandchill #golfandpizza #weekend

[bunkershotgolf]

“Culture Eats Strategy for Breakfast.”

By ED TRAVIS

Matt Corey, Chief Marketing Officer for PGA TOUR Superstore, leans forward to make his point, “Culture eats strategy for breakfast.”

In other words, all the grand plans in the world won’t work unless the company’s people are committed and feel part of the them.

It sounds simple however that doesn’t mean it’s easy. The proof is in the doing…and PGATSS is doing in spades.

The golf merchandising landscape is littered with failed ventures that attempted to sell to consumers conditioned with “gimme a deal” mentality fostered by Internet sellers and marginal brick and mortar operators whose primary strategy was continuous discounting in the hopes of producing sales.

So why is the privately-owned PGA TOUR Superstore succeeding?

In a wide-ranging interview Corey emphasized the answer for them is being able to engage a customer’s emotions, desires and wants as well as needs. He talked about the essentials beginning with ensuring store employees interact positively with customers. This goes beyond simply having a company policy to greet visitors walking in the door and speaks directly about employee training and even more importantly to the attitude they bring to the job.

“They go out of their way to say yes,” Corey said with a slight smile that didn’t mask the intensity of a mantra reflecting the culture of the entire organization. Making visitors into customers and customers into advocates is all about the employee/customer interaction plus the facility itself.

Each location is designed for customer involvement and it starts with the huge putting green just inside the front door that’s ideal for testing out any of the hundred or so putters lining the perimeter. Down one side of the store are hitting bays with golf holes projected on a screen and launch monitors making it easy for golfers to try the latest driver or irons. Trained club fitters and PGA Professionals for swing improvement are on hand or the bays can simply be a practice range when the weather outside is frightful.

Corey used almost the exact words as President and CEO Dick Sullivan did in an earlier interview to point out a basic philosophy that sets them apart and produces a massive advantage over other retailers saying, “This is a relationship business not a transaction business.”

Though perhaps not the most profound description for the almost startling success for the Roswell, Georgia based company, it is dead-on particularly when applied consistently and enthusiastically day to day.

Corey explained the three keys to success in what can be for consumers a bewildering marketplace with choices running the gamut from green grass to big box retailers to small shops and then of course there’s the elephant in the room, the Internet. His list starts with offering a complete depth and breadth of service, something impossible for Internet sellers and very difficult for small shops. Next is engaging customers in the process which includes having fun testing equipment using the hi-tech systems capped off with employing passionate people not on sales commission.

Corey joined PGATSS in 2013 and currently responsible for marketing and the e-commerce business plus he manages the company’s partnership with the PGA TOUR, the Golf Channel, multiple corporate sponsors and the Drive, Chip and Putt program. He earned an MBA from Georgia Tech and before joining PGATSS was Chief Marketing Officer for Golfsmith.

A good example of management’s “outside the box” thinking was their booth on the floor of the PGA Merchandise Show in January manned with company executives looking for candidates to fill slots as teaching professionals, in sales and in event marketing. The results were exceptional with approximately 50 qualified candidates.

Asked about this ongoing concern to find, hire and retain the right people Corey says a presence at the PGA Merchandise Show was more than appropriate, so to speak fishing where the fish are. It also gave the company the opportunity to support and expand relationships with Show-sponsor PGA of America and the LPGA plus the various university golf management programs.

This recruiting effort is not to be thought of as some “major strategic initiative,” to use the current buzz words, but simply an example of the kind of thinking that puts PGATSS in its unique position.

Owned by Arthur Blank, co-founder of Home Depot and owner of the NFL Atlanta Falcons and MLS Atlanta United, they presently have 36 locations in 16 states and plans for 50 by the end of next year. In 2018 they had 7.5 million customers and it is evident the company works hard to make each store a place where families are welcome--play on the simulators, use the hitting bays and putt on the artificial green.

Especially impressive are the array of lessons for women (individual, group, Get Golf Ready) and for juniors (individual, U.S. Kids Junior, LPGA Girls Golf) not to mention free Saturday morning clinics open to all skill levels.

PGATSS also puts time and effort into development of employees and consider it an investment in the company’s future not just another business expense. A large part of that development is having detailed knowledge of the products being sold so in January 160 staff members met at Streamsong golf resort with equipment company representatives for the latest information on the 2019 lines of clubs and balls.

A multimillion-dollar investment was also made last year to improve the company web site and mobile portal acknowledging the pervasive use of smartphones with the goal of making the online experience especially checkout to reflect what customers experience in the stores. Corey described them as the best in the industry.

Five more stores are scheduled in 2019 and management is aggressively investing in store growth though Corey was quick to point out many times the location of a new store is predicated on the real estate. The numbers have to work from the start and entering a particular “good golf market” may hinge on the cost of the real estate. New locations this year will include Sarasota and North Miami in Fla., Denver, Austin and a second store in Boston.

Measured in sales numbers their approach is working. In 2018 sales grew by 14 percent with strong increases in same-store volume plus double-digit growth in e-commerce. The good news was shared across all departments with clubs, men’s apparel and golf footwear leading the way.

But make no mistake. The essence of the PGATSS success is the culture or as Corey put it, “A culture with the spirit of wanting to help our customers play better.”

[bunkershotgolf]

Women a Focus at PGA Tour Superstore

By ED TRAVIS

PGA Tour Superstore (PGATSS), the largest golf-specific retailer in the U.S., continues to have record sales while expanding the number of locations and says clubs, apparel, and accessories specifically for women are an important focus to fuel additional growth.

In an exclusive interview with CEO and President Dick Sullivan he described how the company is working to erase the traditional male-centric approach to golf retailing and the ongoing program to create a woman-friendly experience in their stores. This initiative is an important part of Sullivan’s plans for PGATSS’s future and is already producing impressive results.

To illustrate Sullivan related how at the grand opening last August of the new store in Fairfax, Va. a long line was queuing prior to unlocking the doors and the fire marshal-imposed occupancy limit of 375 was hit within a half an hour. Perhaps this could be considered not too surprising as PGATSS prides itself on each customer’s visit being “experiential” which is a strong attraction in today’s post-pandemic retailing. Sullivan however also told me that the Fairfax grand opening saw more women’s apparel sold than men’s, a complete reversal of the usual pattern.

Consumers respond to retailers with a large stock of aggressively priced inventory where salespeople are friendly and knowledgeable. This of course applies to golf and especially when targeting women golfers, many of whom are new to the game and are looking for help purchasing equipment, plus they are demanding functional yet stylish apparel. Golfers of both sexes are drawn to PGATSS’s size with locations up to 50,000 square feet having multiple hitting bays offering computer simulators for lessons or practice, in-depth inventory of not just equipment but shoes and clothing and in fact most anything needed to play or improve.

As the pandemic changed everyone’s life it was soon realized golf was a perfect antidote for cabin-fever stress and an outdoors activity in which the entire family could participate. The number of golfers and number of rounds saw a dramatic rise of roughly 3 million in 2020 and the National Golf Foundation is forecasting the number to be higher in 2021. A major part of the increase was due to women finding the game fun and recent data shows about 40% of new participants on and off course are women.

According to Sullivan, “Thirty four percent of the new women golfers are under 18 years of age, and we plan to encourage them with more in-store events such as clinics.” He added women’s golf apparel has very much become a reflection of their lifestyle and pointed out, “Women are shopping for and choosing functional apparel and are used to a more relaxed wardrobe.”

“Fitness and wellness spending is exploding. Wardrobes are more casual, and more and more people are OK with a casual environment on the golf course.”

Emphasizing women have been and will be a focus of PGATSS efforts to grow participation in the game the company began “Get Golf Ready,” a series of six one-hour group sessions for novices. The goal is to make women more comfortable with golf’s sometimes-bewildering jargon, etiquette, and rules not to mention with the arcane world of equipment. Participants are taught the basic swing with PGTSS supplying clubs if the student needs them.

PGATSS is the official retailer of the nationwide Women’s Golf Day and a sponsor of other programs introducing women to the game. Showing the across-the-board commitment is a slogan the company often uses, “Girls Got Drive.” Growing-the-game is a long-term goal, so each location runs weekly free clinics to help juniors become part of the sport and last summer a First Tee Leadership Summit for 40 teens was hosted at PGATSS’s owner Arthur Blank’s ranch in Montana.

Additional support is provided to several other organizations dedicated to bringing more women into the game including “She Who Golfs,” “Fore the Ladies, and “Women on Course”

Sullivan was candid about the company’s struggle during the pandemic. “All our stores were closed 54 days during the Covid pandemic, but every vendor was paid on time and not a single employee was furloughed.” A remarkable record few companies, especially in retail, can match.

There have been inventory and supply chain concerns since first quarter 2020 leading to some items being in short supply. Sullivan said for example push carts and package club sets for women and juniors, “were going out the door as soon as they come in.”

At times extraordinary efforts were called for to meet customer demand. Sullivan told of taking delivery of several thousand wedges with no grips as an expedient from an unnamed manufacturer. However, typical of the pervasive make-lemonade-from-lemons credo, not only were the wedges made available to golfers for purchase, but the lack of a stock grip meant “each could be customized for the individual golfer to match the grips of the other irons in the bag.”

Speaking of the bounce back from being hit with the problems from closure and inventory supply Sullivan said, “We were able to have a rapid recovery, quick pick up and there was no slow down going into 2021.”

As chairman of the National Golf Foundation’s Board of Directors Sullivan is a recognized industry leader in both golf and retailing and was the first retail executive to be elected to be board chairman in the history of the Association.

Addressing the future of PGATSS Sullivan said, “We did as much business in the first half of 2021 as all of 2019 which was a record year and projections for 2021 have been increased 20 percent.” The growth of the largest golf-specific retailer continues. By the start of 2022 there will be 50 stores nationwide with plans to add as many as 10 each year and a National Hiring Day was held in early November to find all the new employees required.

Typical of Sullivan’s personal focus he closed our conversation with, “We are most proud of overcoming traditional barriers in golf retail while keeping our culture and attitude to be customer friendly.”

[bunkershotgolf]

Spiegel Takes Over at PGA Tour Superstore

By ED TRAVIS

It’s been just a few months since Jill Spiegel took over the job as President of PGA Tour Superstores and already her presence and leadership style are being felt.

Spiegel succeeded Dick Sullivan, the former President, and Chief Executive Officer, who moved into the spot of Executive Chairman and CEO. Sullivan, who is considered by many to be one of the top golf retailing executives in the country, oversaw PGATSS growth to become of the largest specialty golf and tennis retailer.

The promotion to President makes Spiegel one of the highest placed women in the golf industry and she brings to the position more than ten years of experience with the company, most recently as the PGATSS Senior Vice President and Chief Merchandising Officer.

Michigan native Spiegel’s first job at PGATSS when she started in 2011 was Vice President Merchandising Soft Goods. Prior to that she held merchandising positions at Belk Department stores and was Vice President of Planning for New York-based Macy’s.

In an exclusive interview during the recent PGA Show Spiegel was frank in her assessments and how she plans to move store sales upward capitalizing on the steep growth over the past two years when PGATSS sales doubled.

She immediately emphasized a primary focus in the new year will be on customer club fittings with a revamped approach to the instore Studio experience in all their locations. This has already begun with additional training for club fitters and a multimillion-dollar investment in the Fitting and Services departments plus, and certainly a marker of the depth of commitment to employee education, a new Performance Training Center for store associates has opened.

Spiegel’s most revealing comment was, “We’re here to help the game’s growth through the relationship of our store associates have with customers.” Part of the relationship building will be the continuation of programs to bring new golfers into the game especially women and juniors.

Growth plans for this year include opening eight new stores in among other locations Raleigh, Oklahoma City, Boise, and Chicago. The same number were opened in 2022, all in cities where PGATSS did not have a presence and at the end of 2023 will bring the total number to 64.

In an aside Spiegel also pointed out women like to shop for apparel at PGATSS. She said there are large differences between selling golf clothing and golf clubs and a different focus is required. With a much shorter lifecycle than hard goods apparel must have the latest styling and a large brand assortment which requires seasoned apparel buyers on staff, tight inventory control with frequent markdowns plus creative display and knowledgeable personnel.

Its clear golf attire has become a lifestyle choice for many, and Spiegel said in fact that at some of their warm weather resort locations women’s apparel outsells men’s upending the usual thinking.

As the official retailer of Women’s Golf Day, PGATSS is a longtime supporter of growing the game and have a companywide program for young women called “Girls Got Drive.”

For PGATSS growing the game is not just a nice sounding phrase and hasn’t been for a number of years. Each store offers weekly no cost clinics to juniors plus there is additional support to organizations introducing women into our sport such as “She Who Golfs,” “Fore the Ladies, and “Women on Course.”

Spiegel also commented on the First Tee life and leadership training as well as golf instruction and how her company will continue to be involved.

For the third-year store general managers in conjunction with local First Tee chapters will teach a Leadership Series for teens. Upon completion of the Series, 40 students will be tapped to attend a First Tee Summit at PGATSS owner Arthur Blank’s West Creek Ranch in Montana. Four scholarships of $20,000 will be awarded at the Summit.

Plus, this year for the first time, in addition to the 40 students selected for participation in the Montana Summit, 48 students will be selected to participate in the week-long inaugural Atlanta Leadership Academy to be held in June.

An example of PGATSS’s progressive thinking a trial instituted at the new Milwaukee Wisc. store memberships to the nine simulator hitting bays have been sold. Seating behind the bays encourages friends and family to watch and play games on the simulators together. Spiegel said this was “not unlike a Topgolf entertainment center though on a much smaller scale and serves to foster socialization around the golf experience in a group activity.” It becomes one more step to involve new people in the game potentially converting them to oncourse play and purchase of apparel and equipment.

Spiegel also noted that pickleball racquet and ball sales are “exploding” reflecting the enormous increase in those playing and general interest in the game. This was apparent at the PGA Show where pickleball courts drew a constant crowd of attendees watching exhibition matches that included Tiger Woods’ former golf instructor Hank Haney.

Jill Spiegel steps into Dick Sullivan’s role as leader of an aggressively growing company that is a recognized leader in golf retailing and committed to programs making the game more inviting to women and juniors and turning nonplayers into players.

[bunkershotgolf]

PGA TOUR Superstore – Managed Growth in a Difficult Market

By ED TRAVIS

PGA TOUR Superstore hasn't bought into all the doom and gloom used by some to describe the golf equipment industry. For them the glass isn't half empty and in fact the Atlanta-based chain has been following a controlled plan of expansion to manage growth for the long term.

The opportunity for additional insight to this golf retailing success story came in an interview with Randy Peitsch, PGA TOUR Superstore's Senior Vice President of Operations. Peitsch has been in the top spot guiding day-to-day operations for the past two years after a five-year stint as vice president in charge of hard goods prior to which he was in divisional management at Sports Authority.

We questioned Peitsch about how PGATSS can accomplish growth in an unfavorable golf retail environment.

"It begins with hiring really good people, training them and then backing them," Peitsch responded. "We can then focus on the consumer experience. We are not in the transaction business. We are in the relationship business."

Well said but it should be pointed out that for the past several years the golf equipment business has euphemistically been called a "difficult market" with several events adversely affecting both the makers and sellers of equipment.

Golf retailers of all sizes have closed including the 463-store Sports Authority plus Golfsmith shuttered most of their locations after being purchased by Dick's Sporting Goods. Dick's, the sports retailing behemoth with over 700 locations, has reduced store floor space allocated to golf though recent statements by top management indicate they may be encouraged with the prospects for increases in golf equipment and accessories, particularly their private brands such as Top-Flite.

Manufacturers too have struggled with the largest, Acushnet Holding Corp (NYSE: GOLF), making a tepidly received public stock offering in late 2016. The former Fila Korea subsidiary, maker of several of golf's top brands including Titleist and FootJoy, reported flat sales in 2017 but an increase in net income of $47 million.

In May 2017 TaylorMade Golf, the third largest equipment maker, was sold by Adidas (OTCMKTS: ADDY) for a bargain-basement price to an investment company and in third quarter 2016 Nike closed its golf equipment division. Niche manufacturer Ben Hogan Golf filed for bankruptcy and during its recovery has opted for a consumer-direct strategy.

On the positive side the second largest equipment manufacturer Callaway Golf (NYSE: ELY) finished 2017 with 20% higher sales than the previous year mostly on the strength of its Great Big Bertha Epic line of metalwoods. Midsize manufacturers such as Tour Edge Golf, Bridgestone Golf and Cobra Golf also have said they did appreciably better last year and are looking forward to even more gains in 2018.

Many are saying we are seeing the first signs of some stability in golf retailing and certainly PGA TOUR Superstore is well positioned to take advantage. The company opened three new locations in 2017 for a total of 31 and number 32 opened in February with number 33 set for the Houston, Texas market.

Same store sales last year had a healthy increase of 15 percent plus overall sales increased 23 percent. Digging a little deeper there are even more signs of their expanding market presence:

-Black Friday 2017 same store sales up 20 percent and for the three-day Thanksgiving weekend up 15 percent

-Online sales for Cyber Monday increased an eye-popping 62 percent

-Customer club fittings topped 110,000 in 2017 and lessons hit almost 50,000

-Instore practice bays saw 100,000 participants during the year

Impressive, in fact very impressive, for a year when the number of U.S. golfers continued to decline. Golfer consumers are responding to PGATSS's extensive inventory, competitive pricing and perhaps even more to the service they receive whether online or in-store.

A trip to PGATSS has been compared with a visit to Home Depot and it should be since the private-held PGATSS is part of the AMB Group one of the Blank family endeavors along with the Atlanta Falcons (NFL), Atlanta United (MLS) and Atlanta's Mercedes-Benz Stadium. Family head Arthur Blank was one of the founders of Home Depot, retiring in 2001 as co-chairman.

Blank said of the success his stores have had in an uncertain retail environment, “At PGA TOUR Superstore we’re using the same philosophy that drove the Home Depot’s success and revolutionized the home improvement industry.  We offer a variety of products at value prices, incredible services and employ the best associates to provide a level of customer service that keeps visitors coming back because they love the experience.”

Most consumers acknowledge a visit to a PGATSS has a different feeling from the usual big box retailer. Employees invariably greet you and then thank you when you leave, an everyday example of customer relationship building.

Peitsch pointed out, "We focus on the consumer experience. If we do everything the right way, we win out over the competitors."

True certainly but beating the other guy also takes the proper pricing, inventory and profit margins.

According to Peitsch, "Margins have to be in the first sentence of any discussion and the partnerships with manufacturers are very important." Then as if anticipating my next question, "The trend in our margins has continued upwards."

Funds to pay for expansion must come from either borrowing or consistent profitability. Without the proper margins profits soon are nonexistent and discussing the entire business of PGATSS Peitsch made a critical observation, "Pay attention to the process and the results will come."

Questioned about expansion plans Peitsch then said, "The cost of retail space drives the selection of new locations." So, in addition to golfer demographics, brick and mortar economics dictate whether a site is viable or if even an entire market is suitable.

Peitsch commented that though they may be "under penetrated in the market we are the fastest growing and expect to open a store every other month, so we will have 50 by 2020." That would be a 50 percent increase in just three years and average store size at the end of 2017 was 40,000 square feet making them the largest off-course retailer in golf in terms of average space.

It's plain there is no "secret" to PGATSS success or maybe their secret is the relentless application of good business principles matched to an understanding of their customers.

Refreshing to say the least.

[bunkershotgolf]

Passion & Enthusiasm – A Formula for Success

By ED TRAVIS

Spending time with Dick Sullivan, President and CEO of PGA TOUR Superstore, one quickly gains an appreciation of the passion and enthusiasm that have led the company in the tumultuous business of golf retailing. His passion focuses on helping average golfers have more fun playing this maddening game wrapped in an enthusiasm that is both engaging and infectious.

Outside of the big box sporting goods outlets the number of golf retailing doors and square footage may be shrinking but under Sullivan’s leadership for the past ten years PGA TOUR Superstore (PGATSS) has shown impressive growth with continued plans for expansion. In February the company also celebrates a decade of ownership by the Blank Family of Businesses, owners of the NFL Atlanta Falcons and MLS Atlanta United, whose chairman Arthur Blank was co-founder of Home Depot.

Sullivan’s experience includes stints in senior management at Home Depot and the Falcons with the numbers telling the story of how he applied the Home Depot business model to PGATSS. Emphasis is placed on making customer-centric decisions every day not just the “strategic initiatives” touted by some companies as the solution to every problem. The result is a distinctive company culture with long reaching positives for both employees and customers.

Illustrating the industrywide respect Sullivan has earned, in 2018 he was elected chairman of the National Golf Foundation Board of Directors, the first retailer to take over the top spot in the Foundation’s history.

When the numbers were tallied at the end of 2019 sales for the past three years had increased 46 percent with same-store sales up 22 percent while the brick-and-mortar footprint grew 52 percent. PGATSS also made a significant investment in their e-commerce platform accessed both from PGATSS.com and through a link on PGATOUR.com. According to Sullivan, “Online sales not only were up over 90 percent in 2019 but have continued strong with 35 percent growth in 2020 so far.”

At present there are 42 locations across 16 states with two more opening soon with the customer base increased by roughly one-half million to a total of eight million.

Should there be any question about how this all was accomplished Sullivan put it succinctly when announcing 2019 sales results, “What sets us apart is that we offer our guests a fun, welcoming atmosphere inside our stores. Our knowledgeable associates are committed to helping people with their game so that their experience on the course is even more enjoyable – in fact we custom fit more beginner golfers in our stores than avid golfers.”

Sullivan describes the company as a “real business growth story” adding, “PGATSS is the largest golf-only retailer. There are about 15,000 golf shops and retailers in the country, and we account for almost 50% of all golf equipment sales.”

As to future plans, “We are looking for growth in small to medium size markets with stores in the 25 to 30,000 square foot range and 50,000 square feet in larger markets.” Planning for the next three years calls for another 20-plus stores which will boost store count by almost 50 percent while the long-term association with the PGA TOUR and off-course licensing of the TOUR’s name continues to be a positive particularly for e-commerce.

Market demographics dictate the viability of potential store locations and the cost of real estate for the new store must fit within an acceptable range based on the projected sales. To keep real estate expense in line PGATSS often takes over space in plazas vacated by unsuccessful retailers and additional store locations may not be confined to the U.S. Sullivan revealed, “Expansion plans in the future will include looking into Canada.”

Experiential is an apt word to describe a visit to a PGATSS. In addition to extensive displays of equipment and apparel there is a large putting green just inside the doors and several hitting bays with computer swing analysis for club fittings and lessons. Sullivan shared with us lessons are a big part of the experience saying, “Our locations in total gave over 60,000 lessons in 2019.”

He also spoke of a new concept soon to be rolled out called the Studio Experience. “The PGA TOUR Superstore Studio Experience is a specialized fitting facility, a store within a store, for those wanting the ultimate club fitting and will be included in our locations in certain markets.”

Retailing is a tough business under the best of circumstances, but Sullivan has shown even in very competitive environment by bringing passion and enthusiasm into the customer service equation it is possible to create a winning formula.

Photo credits:

Dick Sullivan, President and CEO of PGA TOUR Superstore (Travis)

Every PGA TOUR Superstore right inside the front door has a large area devoted to testing putters. (PGA TOUR Superstore)

One of the many services is regripping by trained employees in the in-store workshop. (PGA TOUR Superstore)

A major portion of the display space in PGA TOUR Superstores is apparel and footwear. (PGA TOUR Superstore)

[swingjuice]

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