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国产吃瓜黑料 Business Journal

Three Retailers on How the Pandemic Has Hit Them

As states begin to reopen, three independent outdoor retailers reflect on changes made to their businesses during the closure and what comes next

Published: 

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In recent weeks, we’ve seen a lot of suffering among retailers, as news of closures, furloughs, and layoffs rolls in. We’ve also seen the best in people鈥攃ustomers banding together to support independent shops, vendors implementing programs to keep their dealers afloat, and brands launching campaigns to get people thinking about the existential threat some of our beloved gear shops currently face. As states begin to reopen their economies this week, the landscape has changed for retailers yet again, with new challenges鈥攁nd, hopefully, some relief鈥攐n the way.

OBJ spoke with three retailers in states currently reopening to get some perspective on their day-to-day experiences: Joe Butler, board chair of Grassroots Outdoor Alliance聽and owner of Black Creek Outfitters in Jacksonville, Florida;聽Todd Frank, owner of The Trail Head in Missoula, Montana; and聽Tobias Albrigtsen, media and advertising manager at Beaver Sports in Fairbanks, Alaska.

 

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Joe Butler shifted Black Creek Outfitters to an appointment-only model during the closure. (Photo: Courtesy)

First of all, how is your business doing? What has changed in the last few weeks?

“For us, the closure has actually been successful. Because of what we sell, we fell into the category of essential business, so we stayed open, though not in the traditional sense. We worked on an appointment-only basis. It didn鈥檛 matter that people couldn鈥檛 spend as much time inside our store, because we do a lot of our business outside the shop anyway. We鈥檙e a paddlesports store and we鈥檙e located right on a lake, so even on a normal day a customer might be inside the shop looking at kayaks for five minutes and then out on the water for an hour trying out boats. We had a very successful April. I know that I鈥檓 an outlier in that. Another blessing was that we haven鈥檛 had to get rid of anybody. We did have some people choose to stop working for reasons that I think were valid鈥攂ecause they were older, or younger staff living at home with people who were at risk. Those employees leaving basically right-sized the organization without me having to let anybody go.”聽鈥擩oe Butler

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Todd Frank was forced to lay off 40 employees across The Trail Head’s three locations. (Photo: Courtesy)

鈥淚 have three locations here in Missoula and I laid 40 people off. We have essentially cancelled all remaining spring orders. We鈥檙e just going to manage what we have, pick and choose based on what鈥檚 working and not. Right now, our concern is more on the apparel side of the business. Consumers are still going out hiking, riding bikes, and getting on the river, but they鈥檙e not shopping for new jackets or anything like that right now. We鈥檙e budgeting for apparel to be off at least 60 percent this season.鈥 鈥擳odd Frank

鈥淭hings are looking more positive than they looked a month ago. We鈥檙e considered an essential business and we kept the whole store open but it鈥檚 been very slow the last few weeks. Our main competitor here in Fairbanks is REI, and we definitely saw some benefit from their closure, especially in our bike shop. Last month was actually the most successful April the bike shop has seen since 2012 when REI came to town.鈥 鈥擳obias Albrightsen

What helped you the most during the shutdown? What hurt the most?

鈥淚 think one key point is that none of our vendors cut us off in any way. They maintained price and continued to steer people to our store. A lot of them partnered with to show people what was in our shop. I actually think we were a little more prepared for this because Florida is the hurricane belt. We鈥檝e had to deal with disaster situations before that have forced us to look at inventory and expenses and assess everything. A few years ago we were too fat on inventory when a big hurricane hit and we had no cash when we needed it. After that we started to make adjustments to ensure we weren鈥檛 carrying as many payables during hurricane season, just in case we did get cash constrained. In some ways, this pandemic feels a lot like the days right before a hurricane. People are making runs on Home Depot and stocking up on supplies, things like that. The only difference is, with a hurricane it鈥檚 over in a week. COVID-19 has taken a much greater mental toll.鈥澛犫擩oe Butler

鈥淟osing much of our staff has definitely hurt. With the federal aid coming through, some employees that we laid off are getting even more money on unemployment than they were before this started. So I understand if some are hesitant to come back and put their health at risk. For seven weeks it鈥檚 been me here alone answering the phone, talking to vendors, making clear that we can鈥檛 take any new summer product on preseason orders. Right now, there鈥檚 no information out there from government about further steps of reopening. I can鈥檛 bring people back until I know what鈥檚 going to happen.鈥 鈥擳odd Frank

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Beaver Sports actually saw an uptick in its bike shop business, Tobias Albrightsen says. (Photo: Courtesy)

鈥淢arch hit us pretty hard and we were definitely struggling. We tried to predict some of our customers鈥 buying patterns鈥攚e thought we鈥檇 see an uptick in dried foods and other emergency items鈥攂ut those didn鈥檛 move at all. In the second week of March, we stopped placing new orders. Since then, we鈥檝e slowly started ordering again because the revenue started to tick up about two weeks ago. Hopefully we have a healthy May in front of us.鈥澛犫擳obias Albrightsen

Now that you’re reopening, what safety measures are you taking to keep customers and employees safe?

鈥淲e鈥檙e requiring customers and staff to wear masks. We also have new cleaning protocols in place. If someone tries on a piece of clothing, we鈥檙e going to set it aside, steam it, and let it sit for a few days.鈥 鈥擳odd Frank

“We have sanitation stations and most of our employees wear masks. We don鈥檛 require masks at this point but that鈥檚 probably going to change very soon. We got a comment online from someone who said they鈥檙e not coming back to the store unless everyone has masks. We haven鈥檛 had a new case in Fairbanks for a week now so I think most of our employees are pretty comfortable, but some of the online comments we鈥檝e gotten are clear about how customers are feeling. Another聽thing we do here that I haven鈥檛 seen anywhere else is sanitize the pens that customers use to sign receipts. We have two cups, one with dirty pens and one with clean.鈥澛犫擳obias Albrightsen

What challenges do you anticipate in the immediate future?

鈥淩ight now vendors are trying to get rid of products and we鈥檙e trying to do the same. It all has to go somewhere. I would guess that some brands are going to try to liquidate by pushing direct-to-consumer. For them, selling to consumers at preseason wholesale rates is the same as selling to us at the same price鈥攖hey won’t take a margin hit.聽As the summer rolls on, I think the gloves are going to come off and we鈥檒l see discounts of 50, 60, 70 percent. It鈥檚 going to be a bloodbath. Retailers will have to liquidate stuff to survive. That鈥檚 just my gut feeling. I hope that doesn鈥檛 happen, of course.鈥澛犫擳odd Frank

“Every vendor and retailer needs to think about trust right now. You don鈥檛 want to break trust from either side. That鈥檚 what keeps the business going. If you鈥檙e a retailer and you can鈥檛 make a payment, you have to be upfront. If you鈥檙e a vendor, you don鈥檛 want to cut out your retailers by pushing direct-to-consumer business. Some of these partnerships have lasted for decades. It’s critical that we don’t break that. People keep score in the way that you treat partners. It shows people what you really stand for.”聽鈥擩oe Butler

What’s top of mind for you right now?

鈥淲hen we first shut down, we knew it was going to be tough, but I always thought it might be even harder when we reopened. It鈥檚 a whole new world now. As retailers, the field was already tilted away from us with vendors getting product into the market below retail price through expanded pro deals, friends and family discounts, and direct-to-consumer channels. That鈥檚 been happening for years. But now the landscape has changed, and it might accelerate that behavior for some. The best predictor of how a brand is going to behave in the future is to look at how it behaved in the past.鈥澛犫擳odd Frank

鈥淚 think we’ve learned a lesson. The changes we made inside the business over the past couple months were relatively slow, to be honest. We changed as the mandates of the state changed. Looking back, I now see that taking action is a form of advertising in itself. Making your customers comfortable coming into the store is the main goal. Having said that, among the employees, morale is better every day. Now that we鈥檝e had a turnaround, people are excited to come to work again.鈥澛犫擳obias Albrightsen

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