Volume 8 | No. 3 | May / June 2020
A PUBLICATION OF THE NATIONAL SPORTING GOODS ASSOCIATION
COVID-19’s Sudden Impact Advocating For Retailers & Dealers In Washington, DC Working Remotely: Beware Of Email Scams Participation Up In 2019
For more information, please contact: teamsales-us@asics.com
TABLE OF CONTENTS
5
ADVOCACY NOW NSGA quickly reacted to the COVID-19 pandemic by lobbying on Capitol Hill and fighting for relief for retailers and dealers.
CEO NOW 4 March Changed Quickly For Everyone ONFERENCE NOW 10 CCOVID-19 Forces Cancellation of 2020
11 14 18 24 30 34
Management Conference
PERATIONS NOW O Beware of Email Scams While Working Remotely
RETAIL NOW
Preparing for a Different COVID-19 Retail Landscape
INSIGHTS NOW
NSGA Participation Reports Now Available
LOCKER ROOM NOW
NOCSAE Begins Developing Youth Football Helmet Standard
INDUSTRY NOW
Modell’s Bankruptcy Put On Hold by COVID-19
MEMBER SPOTLIGHT NOW
Give Me Five With Lisa Thomas, United Sporting Goods, Inc. NSGA NOW ®
>> May/June 2020 | 3
INow· NSGA OFFICERS Chairman NSGA OFFICERS Pat Donnelley Chairman of the Board Donnelley Sports, Twin Falls, ID David Labbe
Kittery Trading Post, Kittery, ME Past Chairman Treasurer/Chairman-Elect David Labbe Kittery CathyTrading PryorPost, Kittery, ME Hibbett Sports, Birmingham, AL
BOARD OF DIRECTORS Past Chairman Kevin Bezanson RandySource Nill for Sports, Cleve's Nill Bros. Sporting Goods, Kansas City, KS Halifax, Nova Scotia, Canada Rhett Johnson BOARD OF DIRECTORS Johnson-Lambe Co., Raleigh, NC Kevin Bezanson
Cleve's Source for Sports, David Lynn Halifax, Nova Scotia, Canada Dunham’s Sports, Troy, MI Pat Donnelley Greg Miller Donnelley Sports, Twin Falls, ID Universal Athletic, Bozeman, MT Rhett Johnson Jeff Miller Johnson-Lambe Co., Raleigh, NC Scholastic Sports Sales, Ltd., Manlius, NY GregMontgomery Miller Mick Universal Athletic, Bozeman, MT Denver Athletic Supply, Englewood, CO Jeff Miller Jerry Williams Scholastic Sports Sales, Ltd., Manlius, NY Schuylkill Valley Sports, Pottstown, PA
John Oehler
NSGA TEAM LEADERS Dunham's Sports, Troy, Ml Matt Carlson
Jerry Williams President & CEO
Schuylkill Valley Sports, Pottstown, PA
Marty Maciaszek Team Dealer Division, NSGA TEAM LEADERS Communications and HDA Matt Carlson Julie Pitts President & CEO Director, Public Affairs and President, NSSRA Marty Maciaszek Director, Team Nick Rigitano Dealer Division and HDA Director, Insights and Analysis Julie Pitts Director, Business Development and Research Jennifer Shaffer Comptroller Larry Weindruch Director, Public Affairs
Dan Wiersma
Chief Financial Officer
CEO NOW March is typically a big month in sports. It is not a secret that many independently owned sporting goods retailersThe andmen’s dealers have been under siege overtournaments the and women’s NCAA basketball last several years. captivate the public. Baseball players training in
Arizona and Florida is a sure sign spring is around Consumers turn to the internet, thinking it's a better option the corner. The NHL and NBA are in the home stretch for their purchases. The labor market is increasingly tight. toward their postseasons. Manufacturers try to go directly to the consumer and narrow It isof also a busy time for the sporting goods industry with their distribution products. kids gearing up for baseball, softball and other outdoor sports their challenges schools and youth leagues. Adults in Those are a few of thefor biggest independent retailers many parts of the country as arestruggling ready to put on their and dealers face. The effects are evident throughout the industry shoes Our or dust off their and put their businesses consolidate or close their running doors entirely. colleagues at bicycles NSGA's benchmark New Year’s resolutions to theAmerican test. associations, the American Booksellers Association and the North Retail Hardware Association, echo those concerns, none ofhow us issuddenly throwing everyone’s in the towel!lives can Then webut learned change by a force no one can see. No one can say with We always search for ways to help our core members in long their the ongoing battle to (COVID-19) succeed. any certainty how coronavirus Our new 'Verified Independent Dealer Program" hits the bullseye. The idea for the pandemic will impact us. program was sparked by a group of NSGA-member team dealers who wanted to All of our lives have been altered inknowledge an effort to slow the spread of the them virus through social emphasize how their experience, and service differentiates from distancing. Major sporting events and high school seasons in many states were canceled. their competition. Others are on hold and remain in doubt. Ski slopes, ice arenas, national parks, and many other venues were closed. Getting the public to understand the importance of working with a quality independent is one the critical theCanada NSGA Verified Dealer Adealer shutdown ofofmost of the components United Statestoand has notIndependent been fun and games for an Program. NSGA willon assist Verified Dealers by sharing explaining what means to befor industry that relies them. Sporting goods retailersand were forced to shutit their doors part of this program current and potential customers. extended periods like with manytheir other businesses.
The multi-trillion dollar question for nearly all business owners is when will life start to return The details about the criteria for the MVP and All-Star to normal? And how different will that normal be? If you haven’t already done these things in categories of the NSGA Verified Independent Dealer Program, response to the pandemic, here are some things to get done today: along with applications and other important information, can • Take advantage of the freedom from doing like it’s always been done. be found at www.nsga.org/verified. Youbusiness can also read more about it on page 22 of this edition of NSGA NOW. • Communicate with your Suppliers, Banker, CustomersWe and Employees. encourage team dealers, full-line retailers and specialty retailers involved • Look atinyour leases: check language for Force Majeure and Government Action. Use the hockey, skiing, running and other sports to apply. language to negotiate terms you can live with. Dealer bedon’t programming of the NSGA Verified Independent your Business Interruption Insurance Policy. FileProgram the claimwill and take “no” for Another • Look atbenefit foran the group at the 55th Annual Management Conference & 21 st Annual Team Dealer answer. Summit. This will be an excellent opportunity for verified dealers to get together and • Take care of yourself, your family, and your team. share ideas and concerns with their peers. NSGA quickly transitioned from preparing for the annual Management Conference & Team The Management Conference & Team relief Dealerefforts Summit May 19-21 in Braselton, Dealer Summit, to pushing for financial forheld retailers and dealers. In addition to working with our lobbyists in Washington, DC,ofNSGA was aspects regularlyof sharing updated information Georgia, is right around the corner. Some the best the sporting goods with the industry as quickly as possible to on support who needed helpnow with by the Paycheck industry's premier event are illustrated page anyone 11 of this issue. Register Protection Program. made sure weor, were sharing information about tax relief programs completing the formWe in the magazine, online at www.nsga.org/events. for employers as well. We hope everyone had a happy holiday season with family and friends and that you All of this information and more is available at a COVID-19 Resources and Information page closed out 2018 on a high note. Don't forget that NSGA is here to support you in making on our website (www.nsga.org). The page also includes tips to help your business during this 2019 even better! Fight the good fightl challenging time and an interactive map for state-by-state resources. This been an unprecedented version of March Madness no one will forget. But please Besthas regards, remember that NSGA is here to help you navigate the challenges yet to come. We’ve been Matt Carlson President knocked down, Inow it’s time&toCEO get off the canvas and prepare for our next fight. Let’s go!
NSGA works with the National Federation of State High School Associations (NFHS) to keep you informed of key rule changes.
Best regards, NSGACarlson NOW® (ISSN 1045-2087) is published bi-monthly for members of the National Sporting Goods Matt | President & CEO
Association, 1601 Feehanville Dr., Suite 300, Mount Prospect, IL 60056-6035; Phone: (847) 296-NSGA (6742); Fax: (847) 391-9827. Subscription price of $50 per year is included in membership fee. Non-member subscription information available from publisher. Periodical postage paid at Mount Prospect, IL 60056 and additional mailing offices. POSTMASTER: Send address changes to NSGA NOW,® NSGA NOW (ISSN 1045-2087) is published bi-monthly for members of the National Sporting Goods Association, 3041 Woodcreek Drive, Suite 210, Downers Grove, IL 1601 Feehanville Dr., Suite 300, Mount Prospect, IL 60056-6035. © by NSGA 2019. Printed in the USA. 60515. Phone: (847) 296-NSGA (6742); Fax: (847) 391-9827. Subscription price of $50 per year is included in membership fee. Non-member subscription information available from publisher. Periodical postage paid at Downers Grove, IL 60515 and additional mailing offices. POSTMASTER: Send address changes to NSGA NOW,® 3041 Woodcreek Drive, Suite 210, Downers Grove, IL 60515. © NSGA 2020 all rights reserved. Printed in the USA.
4 | NSGA NOW ®
>> May/June 2020
ADVOCACY NOW
NSGA Advocacy in Action Focuses on COVID-19 By Julie Pitts NSGA Director of Public Affairs The National Sporting Goods Association’s (NSGA) mission is to support its members’ efforts to grow the business and advocate on their behalf. During the month of March and into April, NSGA’s diverse advocacy activities have continued to put the viability of members at the forefront of every issue. NSGA has maintained its call for tariff relief and also participated in legislative intervention at the state level to protect its members. Early in the unfolding of the coronavirus (COVID-19) pandemic, NSGA reached out to all 50 governors asking for the establishment of economic injury disaster zones and subsequently lobbied for direct federal stimulus for independent sporting goods retailers and dealers. NSGA stands ready to advocate for its members and provide information resources to guide them through these challenging times.
COVID-19 Response Concerns about coronavirus began to escalate in March with the growing number of cases outside of China, businesses downgrading guidance and the suspension of professional sports seasons. NSGA jumped into action as it became clear drastic economic measures were required to protect the citizenry from the sweeping pandemic. On March 16, NSGA sent the governor of each state a letter requesting that the Small Business Administration (SBA) issue loans under an Economic Injury Disaster Loan (EIDL) declaration to provide financial assistance to sporting goods retailers and dealers who are impacted from losses due to COVID-19. Upon learning the federal government was likely to provide financial relief through stimulus measures, NSGA began aggressive advocacy efforts through its lobbyists in Washington, DC to earmark a portion of this Continued on Page 6 NSGA NOW ® May/June 2020 | 5
>>
ADVOCACY NOW Continued from Page 5
money for independent sporting goods retailers and dealers as they experience the ripple effects of school closures, the cancelation of athletic seasons, the suspension of park district activities and fitness programs and the closure of state parks, ski resorts and other outdoor venues. NSGA requested $280 million for the exclusive benefit of the sporting goods retail and dealer industry. The Coronavirus Aid, Relief, and Economic Security Act, referred to as the CARES Act, was signed into law on March 28 and provides $2 trillion in economic relief in response to the COVID-19 outbreak. While the federal government chose not to provide specifically earmarked funds for sporting goods retailers and dealers, NSGA believes its significant lobbying efforts helped to provide considerable financial relief for its members through the provisions of the CARES Act, such as the Paycheck Protection Program, which includes low-interest, no-collateral funding to retain staff and
State Advocacy: Overtime Exemption Rules Revisited in Maine LD402, proposed in the Maine State Legislature, seeks to restore overtime protection for workers. Through communications with bill sponsors and members of the Maine Labor and Housing Committee, NSGA challenged the bill, asserting that any increase in overtime exemptions, elevated wage thresholds and future indexed levels would be overly burdensome for owners and operators of sporting goods retailers throughout Maine. As of March 17, the bill has been carried over to any “Special Session of the 129th Maine Legislature,” which is a session of both chambers of the state legislature. NSGA continues to argue against increasing overtime exemptions as they represent significant increases in operating expenses for members.
loan forgiveness when funds are used for continued payroll costs.
NSGA will continue to champion the needs of its members through
Businesses can also benefit from employee retention tax credits
its advocacy efforts. Members are encouraged to visit the NSGA
and other relief provisions to help them weather business closures
website for additional information. Questions regarding the
and stay-at-home policies. NSGA sent sporting goods retailers and dealers frequent
COVID-19 relief measures and other advocacy concerns can be directed to info@nsga.org.
communications, informing them of the association’s advocacy efforts, as well as how to prepare to complete the SBA loan application. NSGA has COVID-19 resources, including a state-bystate interactive map, available on its website at https://www.nsga. org/advocacy/covid-19-resource-page/.
Americans for Free Trade: Tariffs Hurt the Heartland
Check Out NSGA’s COVID-19 Resource Page The National Sporting Goods Association (NSGA) provides you with an up-to-date COVID-19 Information and Resources page on its website at https://www.nsga. org/advocacy/covid-19-resource-page/. This page offers necessary information for sporting goods retailers and dealers on securing Emergency Loans via the Small Business Administration (SBA) through the Coronavirus
NSGA is a member of the Americans for Free Trade coalition, which is comprised of American businesses, trade organizations and workers united against tariffs. The Tariffs Hurt the Heartland campaign educates the public on the negative consequences of tariffs and fights for responsible tariff reform. The United States’ trade war with China has been costly as some estimates indicate as much as $46 billion and thousands of manufacturing jobs. With the economic toll of the COVID-19 pandemic, this will continue to worsen. The Trump administration recently announced it would not defer tariff payments to help provide economic relief, furthering the losses inflicted on businesses and consumers. However, some tariff exemptions were approved for select medical products and some items such as hand sanitizer.
6 | NSGA NOW ®
>> May/June 2020
Aid, Relief and Economic Security Act (CARES Act). This includes details/provisions for sections in the CARES Act such as the Paycheck Protection Program, Tax Modifications, Expansion of Unemployment Insurance, Changes to Sick Leave and Family Leave Benefits, and Sector-Specific Assistance. Stay informed with an interactive state-by-state map detailing each state’s response efforts as well as tips and tools for our retailers and team dealers navigating through this pandemic. Our page also provides the current status on national and state sports organizations in the US and Canada as it pertains to activity closures due to COVID-19.
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CONFERENCE NOW NSGA Cancels 2020 Management Conference & Team Dealer Summit Due to COVID-19 Pandemic NSGA closely monitored the growing coronavirus (COVID-19) global
and not something we want to put at risk by bringing together a large
pandemic and recommendations for size of gatherings by the Centers
group of people nationally and internationally. We wanted to let people
for Disease Control and Prevention (CDC) in early March. After careful
know as soon as possible so they have enough time to alter their travel
deliberation, the NSGA staff and Board of Directors decided on March
plans, hotel reservations and personal schedules.”
18 to cancel the 2020 Management Conference & Team Dealer Summit to be held May 17–19 in Phoenix, Arizona because of developments caused by COVID-19.
Over the coming days and weeks, NSGA will be addressing the many issues arising due to cancellation of the conference. All registration fees for the 2020 Management Conference & Team Dealer Summit
“The coronavirus pandemic is causing
will be returned. NSGA will also be
incredibly rapid changes that must be
addressing issues such as the Sporting
made in our daily lives and is also leading
Goods Industry Hall of Fame Class of
to a lot of uncertainty on what’s ahead,”
2020 induction of Peter Capolino, Robert
said Matt Carlson, President & CEO of
Greenberg and Klaus Obermeyer and will
NSGA. “As the pandemic escalated in
be working with Sporting Goods Industry
the United States, it became clear that
Hall of Fame Chairman Ken Meehan on
conducting this year’s Management
alternative solutions. NSGA will have
Conference & Team Dealer Summit was
additional information on this and other
no longer a wise or realistic option, particularly when the CDC made its most recent recommendation Sunday that organizers cancel or postpone larger events.
programming from the conference as it becomes available. “We truly appreciate our members and supporters sticking with us and having patience as we arrived at this decision,” Carlson said. “It
“Schools, restaurants and retailers closed to help prevent the spread of
is disappointing that we will not be able to hold the Management
the coronavirus. Major sporting events have been canceled and sports
Conference this year because we know how important it is to help our
leagues have been put on hold. Companies are instituting travel bans
attendees address many of the challenges they face. There are many
and major airlines are reducing flight schedules. The health and safety
more significant challenges ahead for everyone in the sporting goods
of our attendees, speakers and NSGA staff is of the utmost importance
industry and we wish everyone well as we navigate them together.”
Hall of Fame Class of 2020
PETER CAPOLINO
ROBERT GREENBERG
KLAUS OBERMEYER
Mitchell & Ness Nostalgia Company
Skechers
Sport Obermeyer
Founder
10 | NSGA NOW ®
>> May/June 2020
Founder And Chairman
Founder and CEO
OPERATIONS NOW Tips to Detect and Protect Against Email Scams By Lizz McCrindle NSGA Marketing Coordinator Email communication is an important component of everyday life
The golden rule: Assume that every email is suspect. Would
and business. However, this channel of communication is also a
you give your social security number to someone who called
feeding ground for scammers. As everyone pressed through the
you claiming to be from an important government agency?
start of the COVID-19 pandemic, the majority of the US workforce
Of course not. The same implies for an incoming email.
was forced to work from home and may continue to do so for
• Never assume that content, including email addresses or phone
the foreseeable future. That is why, especially when everyone is facing so much uncertainty, it is important to take the time to be alert to potential scams and aware of ways to protect yourself and
numbers, is correct. • Never blindly trust a link from an email. Scammers want you to click on the link, which will bring you to a site that looks authentic
your business.
and then prompt you to try to log in. The scammer will capture
NSGA Information Systems Manager Brad Thompson shared
your login information for later use and then direct you to the
some helpful hints on protecting yourself and your business from email scams.
real site to login.
A properly configured email firewall should be set up and monitored
the scammer (or his friends on the dark web) will try to
by your Information Technology professional. It is essential for helping limit email scammers. Equally important is educating your employees on what to look for when opening questionable emails. Is there a foolproof way to know it is a bad email? No, but there are some indications, that when put together, should raise alarm: • An email from someone you do not know asking for something • An attachment asking you to open it from someone you do not know • An email from higher management or the owner asking for urgent information when this is unusual
• Do you use the same password in multiple places? Well, use that same password for other sites.
• An example: The email requests that you change your password immediately. Instead go to the website directly, without using the link in the email. Is there any indication of an issue or message at the website?
• Is the email requesting data or money? Even if it appears to be a business partner, take that extra step and make a phone call to verify. It may be necessary to take a screen shot or snip of a scammer email to share with your team and make them aware of the scam and how it was identified. Never forward the actual attachment, share the captured image and use it as an opportunity to educate
• Misspellings or poor grammar
your team. Ask them questions and create discussion.
• Is it an internal email vs. external email - your email firewall may
Teach and encourage your team to be alert. It may just prevent a
be able to flag external emails
data breach!
• An email from someone you know that doesn’t make sense. Their contacts may have been hacked. (Reach out by phone and bring this to the attention of the sender because they will appreciate it). • An email that tries to create fear that if you don’t act something bad will happen. It is often your reaction that will get you in trouble.
NSGA NOW ®
>> May/June 2020 | 11
INSIGHTS INSIGHTS
WOMEN'S SPORTS WOMEN'S SPORTS
The increasing participation in women's sports presents new growth opportunities for dealers. With the right technology partner, dealers can take their business to the next level by reaching new customers, The increasing participation in women's sports presents new growth opportunities for dealers. With the measuring performance against industry benchmarks, and informing business decisions with real-time data. right technology partner, dealers can take their business to the next level by reaching new customers, Women's sports is big business. Here's a regional breakdown of the average volume measuring performance against industry benchmarks, and informing businessstore decisions withfor real-time data. online pop-up stores powered by OMG. Women's sports is big business. Here's a regional breakdown of the average store volume for online pop-up stores powered by OMG.
PACIFIC
ROCKY MOUNTAIN
AK, HI, WA, OR, CA
MT, ID, WY, NV, UT, CO
PACIFIC
AK, HI, WA, OR, CA Tennis
s
$1,091
ennis Tennis ll Basketball
Volleyball
$1,091 $1,318
etball Basketball ll Softball
ROCKY MOUNTAIN
MT, ID, WY, NV, UT, CO Volleyball
Volleyball Volleyball Soccer Soccer
$1,318 $1,569
$0 $1,000 $1,500 $2,000 $2,500 Sports $500 on the rise: Softball, Golf, Swimming
SOUTHWEST
MIDWEST
AZ, NM, TX, OK
SOUTHWEST
AZ, NM, TX, OK Basketball
Basketball Track & Field
ND, SD, NE, KS, MN, IA, MO, WI, IL, IN, OH, MI
$1,312
Track & Field Soccer $500
$1,000
$1,500
$500
$1,000
Lacrosse Hockey
$0 Hockey
$2,000
$1,861
$0 Volleyball
$1,000
$2,000
$1,000
$2,000
$1,000
$1,500
$2,000
$2,500
PA, NJ, RI, NY, CT, MA, NH, VT, ME $1,877 Soccer
Soccer Track & Field
$1,877 $1,935
Soccer Track & Field
$2,591
SportsVolleyball on the rise: Track & Field, Hockey, Rugby $0
$500
$2,500
$2,127
NORTHEAST
Soccer
$1,609 $1,861
Lacrosse Volleyball
$2,000
PA, NJ, RI, NY, CT, MA, NH, VT, ME
DE, MD, WV, VA, NC, SC, GA, FL, AL, MS, LA, AR, KY, TN Soccer $1,609
Lacrosse
ball
$1,500
NORTHEAST
SOUTHEAST
Soccer Lacrosse
$1,000
Sports on the rise: Volleyball, Tennis, Golf
DE, MD, WV, VA, NC, SC, GA, FL, AL, MS, LA, AR, KY, TN
Soccer
$500
$0
SOUTHEAST
sse
$1,739 $2,127
SportsHockey on the rise: Volleyball, Tennis, Golf
Sports on the rise: Softball, Volleyball, Lacrosse
cer
$1,607 $1,739
Lacrosse Hockey
$2,000
$1,500
Swimming Lacrosse
Swimming
Soccer Soccer $1,922 Sports on the rise: Softball, Volleyball, Lacrosse $0
ND, SD, NE, KS, MN, IA, MO, WI, IL, IN, OH, MI Swimming $1,607
Lacrosse
$1,407 $1,922
rack & Field
$0
MIDWEST
Swimming
$1,312 $1,407
Basketball
cer
$1,734 $2,299
$0 $500 $1,000 $1,500 $2,000 $2,500 SportsLacrosse on the rise: Softball, Golf, Swimming Lacrosse $2,299
$0 $1,000 $1,500 $2,000Water Polo Sports $500 on the rise: Volleyball, Lacrosse,
eld
$1,543 $1,734
Soccer Soccer Lacrosse Lacrosse
$0 $500 $1,000 $1,500 $2,000 SportsSoftball on the rise: Volleyball, Lacrosse, Water Polo oftball $1,569
ball
$1,543
$3,000
Track & Field Lacrosse
$1,935 $2,069
Track & Field
Lacrosse
$0 Lacrosse
$500
$1,000
$1,500
$2,000
$2,500
$2,591 $2,069 SportsLacrosse on the rise: Tennis, Hockey, Cross Country
Sports on the rise: Track & Field, Hockey, Rugby
$3,000
$0
$500
$1,000
$1,500
$2,000
$2,500
Sports on the rise: Tennis, Hockey, Cross Country Data as of March 2020 Data as of March 2020
Elevate your women's sports strategy, supercharge sales and discover untapped opportunities with OrderMyGear.
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RETAIL NOW COVID-19 and the Remaking of Retail By Ritchie Sayner Advanced Retail Strategies Well, you can throw out any comparisons to last year’s business, as they have now been rendered meaningless by the COVID-19 pandemic. A seismic change is underway in the landscape of retailing – and it is a whole new ballgame. Some stores began re-opening as early as May; many will reopen over the summer. Some will likely not re-open, period. This article addresses steps that can be taken now to maximize this critical time.
• Vendors that you probably should have; • Vendors that you could live without, due to poor performance or duplication with other brands. When it comes to dealing with vendors, negotiation will be the name of the game. In the short term, things you may wish to negotiate include: • Shifting deliveries
Financial
• Payment dating
Let’s deal with the financial aspect first. Knowing your cash
• Available discounts
position always allows you to make better business decisions.
• Return privileges
Sales projections for 30-60-90-120 days out will help guide every financial decision. Cash flow reports should be updated as often as
• Cancellations
needed. It might also be a good idea to recalculate your break-even
• Protection from online discounting
point and to make sure your inventory planning is based in reality.
• Relaxing of Minimum Advertising Pricing (MAP) policies.
Where possible, make every fixed expense a variable expense so it can be tied to revenue. Selling payroll is the obvious one here. Have you negotiated with vendors regarding dating and discounts?
What will be the worth of your current inventory when you reopen? If you have been closed for two months with very little new merchandise arriving, the short answer is: not as much as it was
Have you been able to obtain some sort of rent relief from your
when it first arrived. Since the footwear business by nature turns
landlord? Most landlords would rather have some rent than to see
somewhat slower than apparel, the shelf life is arguably a bit longer,
their space “go dark.”
but the same issue remains in place. You still have somewhat dated
For the short term, margin is not the top priority: CASH is King! Regarding business interruption coverage, research your state’s regulations and contact your insurance carrier. If enacted into law, certain policy exclusions which would normally prevent payment for business interruption might be overridden.
Inventory
Most, if not all, vendors are backed up with spring inventory that was canceled. They have the same problem that you do. This probably makes returning anything out of the question for now. You are going to have to do some level of promoting. Please resist the temptation to use what I have previously
What is the current plan to sell through current on-hand inventory by category? I am always in favor of streamlining the number of vendors carried in most stores; “too many” is clearly one of the biggest contributors to stores being overbought, and to slowturning stocks. If there was ever a time to reduce your vendor mix it is now. Run a vendor report by classification and make decisions regarding the vendor matrix going forward. Group them into three categories: • Critical vendors that you must have; 14 | NSGA NOW ®
merchandise that you have not sold, mostly due to closure. What are you going to do?
>> May/June 2020
termed “the lazy person’s markdown.” This is where everything in the store is marked down equally, say 20-30 percent off; it has proven to be one of the least effective markdown strategies available. Alternatively, take targeted markdowns by class, vendor or style. This gives you the opportunity to promote what could be the most challenging inventory first. It is especially palatable with vendors where price accommodations have been made available. Another option to consider could include shifting the major storewide clearance events back a month, since there are rumblings that fall deliveries might be late anyway. This will give you time to move
pickup, pre-scheduled appointments, off-hours shopping, Buy Online Pickup In Store (BOPIS) and Buy Online Return In Store (BORIS) policies and live streaming events. Whatever changes you make, be sure that your customers, as well as your staff, are aware of them. What we have all learned through this pandemic, if there was ever any doubt, is that online selling has undeniably sealed its rightful place in retail. Develop a marketing plan that reflects your online presence, as well as the in-store feeling. Remember, your website home page is your virtual store window. Make certain it looks that way. Many online shoppers will not go any further than the front page of your website if they don’t get a good feeling, just like through more spring merchandise. For stores with open-to-buy
shoppers often walk past a store whose windows don’t entice
(OTB) for fresh goods, you will be in the driver’s seat. There will be
them to enter.
merchandise available, and most likely at deep discounts, making
Stay strong and stay positive. Business most likely will not be the
reorders a good opportunity buy.
Looking Forward As you begin to look toward fall, make sure your OTB is in line with current revised sales projections. You may need to adjust your percentage buys for initial or preseason buys, fill-ins, reorders and
same as it once was. Just keep in mind that times of crisis create opportunities. With good planning and execution, you will be able to capitalize on them. If you are interested in a cash flow report form contact Ritchie Sayner at advancedretailstrategies.com.
opportunistic buys. Remember, the old model is dead for now: new game, new rules.
Ritchie Sayner
Most retailers keep a “wish list” of vendors they would like to carry
Sayner has spent the past four
but have not been able to for competitive reasons. With several
decades helping independent
retail closures on the horizon, the vendors on your list might be
retailers improve profitability.
much more open to selling to stores that have survived.
In addition to speaking to retail
Will your team be the same upon reopening? New team members
groups nationwide, Sayner is
might need to be trained on virtual selling, as well as in-store selling.
a regular contributor to retail
Since Paycheck Protection Program (PPP) funds cover about two
industry publications. He is
months of payroll expenses, now might be the perfect time to
also the author of the book,
consider an incentive-based selling payroll system.
Retail Revelations-Strategies for
Know Your Customer
Improving Sales, Margins, and Turnover. He can be reached though his website at advancedretailstrategies.com
Customer behavior is likely to be changed forever. This will become even more evident in the months following re-opening. Consider what you need to do to alleviate any potential customer concerns.
Management One
What will be your procedure for cleaning items that have been tried
Management One is the source for the material in this article. You can
on? What will you do if social distancing is still the norm? What is the process for sanitizing fitting rooms, bathrooms and other areas? Consider re-evaluating product display and placement on the floor.
learn more about the services Management One provides at https://www. management-one.com/. They include the Retail Recovery Playbook™, which is focused on reopening from COVID-19 and is available for a
Continue to offer special services to customers they may have
free digital download at
become accustomed to during the pandemic. These include curbside
https://www.management-one.com/retail-recovery-playbook. NSGA NOW ®
>> May/June 2020 | 15
INSIGHTS NOW New Reports Show Participation Up for 2019 By Nick Rigitano NSGA Director of Insights & Analysis According to the latest edition of NSGA’s Sports Participation in the US report, 2019 topline results point to positive performance overall among the ten segments tracked by NSGA according to the association’s Total Participation Points (TPP) measure. TPPs offer a more complete view of participation because both the number of people participating in each sport segment (reach) and the number of sports each person is participating in (depth) are taken into account. In total, 2019 saw seven segments increase in participation while one segment remained relatively flat and two segments decreased compared to the prior year. As illustrated in Figure 1, the segments experiencing growth in TPPs included Fitness Activities (+2.8%), Outdoor Activities (+2.0%), Wheel Sports (+1.8%), Team Sports (+1.6%), Individual Sports (+1.2%), Personal Contact Sports (+0.8%), and Snow
segments (Indoor Games, Shooting, Snow) have experienced slight
Sports (+0.6). The Indoor Games segment remained relatively flat
decreases over the last 5 years but have seemingly flattened out
(-0.1%), while declining segments included Open Water Sports (-0.4%)
in the most recent years.
and Shooting Sports (-1.1%).
The individual year to year changes for the 57 sports and recreational
This year’s positive results break a pattern of inconsistency and lack
activities tracked in the report further support positive results, as
of growth experienced in recent years. However, it is important to
42 sports/activities increased vs 2018 and 15 sports/activities
note that one year does not make a trend. Looking over a longer
decreased. In the next edition of NSGA NOW, we’ll take a deeper
term among the segments tracked by NSGA, Figure 2 indicates that
look into select sports/activities and discuss the changes and
Fitness, Open Water, Outdoor, and Wheel Sports segments have
drivers associated with each.
experienced increases over the last 5 years while the Individual
The Sports Participation in the US report is available now and
and Team segments have remained relatively flat. The remaining
includes a summary snapshot of segment participation trends from the 1990s through 2019 based on the TPP measure. The report also includes easy-to-understand quick view snapshots by sport/activity, allowing users to easily see a 10-year participation trend (when available) in addition to key demographic and geographic drivers of participation. NSGA’s participation research also includes Cross Participation, Lifecycle Demographics, and Single Sport reports. For more information on each report and to purchase your copies today, please visit www.nsga.org/research.
18 | NSGA NOW ®
>> May/June 2020
AFFLUENT SINGLES
What demographics make up your area? LOW/MIDDLE INCOME EMPTY NESTERS
SPORTS PARTICIPATION LIFECYCLE DEMOGRAPHICS
2020 nsga.org
SINGLE PARENTS
LOW/MIDDLE INCOME TRADITIONAL FAMILIES
SENIORS (AGE 65+)
WORKING PARENTS
EDITION
DOUBLE INCOME NO KIDS (DINKS)
AFFLUENT TRADITIONAL FAMILIES
LOW/MIDDLE INCOME SINGLES
AFFLUENT EMPTY NESTERS
Find Out What They Participate In! Order the 2020 Edition of NSGA Sports Participation Lifecycle Demographics and other NSGA research at nsga.org/research
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LOCKER ROOM NOW NOCSAE Begins Process to Develop Youth Football Helmet Performance Standard
The National Operating Committee on Standards for Athletic Equipment (NOCSAE) voted to formally begin the development process for a youth football helmet performance standard at its winter public meeting in Phoenix on January 31. The Standards Committee also discussed the potential need for new equipment standards for football shoulder pads and flag football head protection. Background on the Proposed New Youth Football Helmet Performance Standard For more than 10 years, NOCSAE has worked to develop a youth football helmet standard that is evidence-based. In 2017, NOCSAE’s Scientific Advisory Committee (SAC) recommended two research initiatives to determine the magnitude and frequency of head impacts for youth football players ages 5 to 10 and 11 to 14 years old and explore potential criteria for a youth helmet football standard. The NOCSAE board agreed and provided a total of $493,000 in funding to support the research. At the meeting in Phoenix, Dr. Blaine Hoshizaki, Professor, Faculty of Health Sciences at the University of Ottawa and Dr. Steve Rowson, Associate Professor, Department of Biomedical Engineering and Mechanics at Virginia Tech presented findings from these youth tackle football studies. Dr. Hoshizaki’s team studied head impacts among 60 youth football players and Dr. Rowson’s research
For the purpose of the standard, youth is defined as those who have not yet reached high school. The proposed new standard (ND006-20) will remain in “proposed” status for a minimum of 12 months, during which NOCSAE invites all interested parties to provide input through its website or by email. NOCSAE expects the proposed standard to undergo significant changes in the development process which will likely take several years. A copy of the proposed standard and more information about the SAC and research studies is available at nocsae.org. NOCSAE’s existing football helmet standard applies to players of all sizes, and helmets that are small enough to be worn by “youth players” are required to be tested on a biofidelic head form that replicates the head of a 50th percentile 10-year-old male. Potential New Equipment Safety Standards for Flag Football
provided critical insights on biomechanics of concussion in youth
and Football Shoulder Pads
players. The findings helped the Technical Director to develop a
The Standards Committee agreed to continue evaluating the
preliminary test protocol for a youth football helmet.
possibility of developing new equipment performance standards
After discussions and input from interested parties during the
for flag football head and face protection and for football shoulder
meeting, the Standards Committee voted to move forward with developing a football helmet standard specific to youth players. The NOCSAE Standards Committee recognizes there are significant concerns and questions about risks related to youth tackle football shared by diverse stakeholders, as well as ongoing policy discussions across the country about how best to address and manage these
pads. Flag football is currently one of the fastest growing team sports and allows players of all ages to enjoy the game without many of the injury risks associated with tackle football. Preliminary data suggest that occasionally serious head and facial injury occurs from unanticipated contact with other players and impacts with the ground, and that many of these injuries are preventable.
risks. In fact, some members of the NOCSAE Standards Committee
NOCSAE is also considering possible criteria for a performance
support recommendations to prohibit tackle football for youth
standard for football shoulder pads. Recent data suggest that a
under a certain age to minimize these risks. However, as long
significant percentage of concussions occur from shoulder pad impacts
as youth continue to play this sport, NOCSAE believes it has a
to the helmet of the concussed player, and NOCSAE is exploring the
responsibility to advance the development of a youth helmet
feasibility and potential efficacy of shoulder pad performance as
football performance standard that is evidence-based.
related to reducing head accelerations in those circumstances.
24 | NSGA NOW ®
>> May/June 2020
Counterfeit Lacrosse Balls
The NCAA removed the bat from its approved-for-NCAA-sanctioned-
NOCSAE continues to take aggressive steps to stop the sale of
play bat list in late February. The NFHS ruled it non-compliant in
counterfeit lacrosse balls by certain vendors, primarily on the internet. Over the last few years, NOCSAE has worked with Amazon, GoDaddy and other online shopping platforms to shut down
early March and the manufacturer was advised it has the right to appeal the decision.
language and logos, but which have not been certified to the
Proposed NCAA Football Rule Changes Affect Jersey Numbers
NOCSAE standard. NOCSAE warns coaches, parents and athletes
The use of duplicate jersey numbers and adding “0” as a legal
to use caution when purchasing lacrosse balls, particularly online.
number are among the potential college football rule changes
vendors selling lacrosse balls that have NOCSAE and SEI certification
Consumers should not rely on the presence of logos to assess whether lacrosse balls meet the NOCSAE standard. To ensure these
that were implemented starting with the 2020 season. The NCAA Football Rules Committee recommended the changes and all rule
products have been certified to the NOCSAE standard, NOCSAE
proposals were approved by the NCAA Rules Oversight Panel.
recommends checking the name of the manufacturer in the certified
The committee recommended that no more than two players
product list available on the Safety Equipment Institute (SEI) website
may wear the same jersey number. The rules regarding players
at www.seinet.org. NOCSAE will continue to provide updates on
using duplicate numbers would continue to require that they play
this issue as new information becomes available.
different positions and aren’t on the field at the same time.
Information about NOCSAE’s recent consumer alert regarding
Committee members cited having more than two players with
“KSONE” lacrosse balls is available at https://nocsae.org/nocsae-
the same number creates confusion for the referees and makes
issues-consumer-alert-about-ksone-lacrosse-balls/.
scouting opponents difficult. To respond to the popularity of
Updates to Existing Standards
single-digit numbers, the NCAA agreed that “0” be added as a
The Standards Committee approved minor modifications to existing standards, including technical clarifications for the pneumatic ram test standard and a proposed revision to the headform positioning to be used during impact attenuation tests. The technical director
legal number.
NCAA Women’s Volleyball Makes Rule Changes Affecting Apparel, Uniforms
also provided an update on analysis of data and outcomes related
The NCAA Playing Rules Oversight Panel approved two rule changes
to the mechanical chest surrogate used in testing for the commotio
involving uniforms and apparel for women’s volleyball for the 2020 season.
cordis chest protector standard.
• Players will be allowed to wear shorts or leggings, provided all
More information on all NOCSAE standards is available at www.nocsae.org.
NCAA, NFHS Disallow Use of 33-Inch Model Louisville Slugger Meta Composite Baseball Bat
teammates wear the same color. • Teams will also be assessed an administrative red card for uniform violations and teams with uniform violations will start a match trailing 1-0 in the first set. Teams also have an option to add a third referee to conduct all video challenge reviews. The addition of the third referee is optional for schools and conferences due to the financial implications. Over the past two seasons, the Southeastern Conference experimented with having a third official to handle video challenge reviews. In 2019, the average video review in the SEC was completed in 1 minute, 10 seconds. In NCAA women’s volleyball matches in which the second referee handled those duties last year, the
The Washington State University Sports Science Laboratory has advised the National Federation of State High School Associations (NFHS) and NCAA that the BBCOR decertification process has been implemented for the 33-inch model Louisville Slugger Meta
reviews were completed in an average of 1:29. NCAA Women’s Volleyball Rules Committee members liked the optics of having a third person, who was not involved in the original call, to review coach’s challenges.
Composite baseball bat. NSGA NOW ®
>> May/June 2020 | 25
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INDUSTRY NOW COVID-19 Delays Bankruptcy Proceedings for Modell’s Sporting Goods Modell’s Sporting Goods announced on March 11 it voluntarily filed for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District
Friday morning, March 13. The return from the liquidation of the first 19 stores managed by Tiger has been beyond spectacular, and we are confident this performance will continue across the remaining stores, maximizing return for our creditors.” Modell’s has been engaged in discussions with its financial creditors and has been exploring a recapitalization of the business through a potential sale of some or all of its assets or an equity investment.
of New Jersey. But the spread
Modell’s will continue to pursue these discussions.
of the coronavirus (COVID-19)
Robert Duffy, Managing Director, BRG, has been named Chief
resulted in Modell’s request to
Restructuring Officer of the Company. RBC Capital Markets is acting
have its bankruptcy proceedings
as investment banker for Modell’s; BRG is also acting as Modell’s
suspended until at least April 30 granted by the same court.
restructuring advisor, Cole Schotz is Modell’s legal counsel, and
New York-based Modell’s, which is America’s oldest family owned
A&G Realty Partners is marketing the store leases.
and operated retailer of sporting goods, athletic footwear, active
Modell’s was founded in 1889 and operates stores in New York,
apparel and fan gear, planned to liquidate all 134 of its stores in 10
New Jersey, Pennsylvania, Connecticut, Rhode Island, Massachusetts,
states and Washington, D.C. In court documents, Modell’s said the
New Hampshire, Delaware, Maryland, Virginia and Washington, D.C.
“unprecedented, exponential spread of Coronavirus disease” has
William Modell, who helped oversee the growth of the company,
impacted its bankruptcy proceedings, most notably its liquidation
was inducted into the Sporting Goods Industry Hall of Fame in 1994.
sales, from store closures due to COVID-19. In the March 11 announcement, the company’s lenders and longstanding partners were to provide Modell’s with the financial flexibility to operate the business in the near term, including
Image Apparel Solutions Becomes Official Supplier of Patches for United Women’s Soccer
the timely payment of employee wages and benefits, continued
United Women’s Soccer (UWS)
provision of customer orders and shipments, and other obligations
extended its partnership with
as they come due going forward. Modell’s stores initiated store
Image Apparel Solutions (IAS).
closing liquidation sales of sporting goods equipment, footwear,
In January, UWS announced
team apparel and active apparel to sports fans in all stores and
that Knit Wit Apparel - a wholly
will continue its online sales during this process.
owned division of IAS - would
“Over the past year, we evaluated several options to restructure
serve as the official scarf supplier to UWS and its member teams.
our business to allow us to maintain our current operations. While
Now, Image Apparel Solutions will also serve as the official supplier
we achieved some success, in partnership with our landlords and
of UWS patches. Patches will be produced with IAS’s trademark
vendors, it was not enough to avoid a bankruptcy filing amid an
Performance Flex® matte finish. Image Apparel Solutions also
extremely challenging environment for retailers,” said Modell’s
becomes the preferred embellishment partner of UWS.
CEO Mitchell Modell in a March 11 release. “We are extremely appreciative of the support that our lenders (JP Morgan Chase and Wells Fargo), vendors and landlords provided during this difficult period, engaging in extensive renegotiation efforts and allowing us to pursue every possible avenue to preserve the jobs of our loyal associates. “I want to thank each and every one of our associates for their support over the years and our customers for their historic support of Modell’s. This is certainly not the outcome I wanted, and it is one of the most difficult days of my life. But I believe liquidation provides the greatest recovery for our creditors. We have partnered with Tiger Capital Group to liquidate the remaining stores beginning 30 | NSGA NOW ®
>> May/June 2020
“We are excited to strengthen our partnership with Image Apparel Solutions, to not only supply custom team scarves, but also our official league patches,” said UWS COO Roberto Aguas. “The quality and dedication that IAS exhibits makes them an excellent partner of UWS.” “We are very proud to continue expanding our commitment to the UWS national pro-am league and UWS League Two,” said Image Apparel Solutions president Tim Kelliher. “This exciting partnership provides UWS League teams access to one of the most exciting new decoration techniques in our industry for their uniforms. Performance Flex® is a decoration technique that is truly revolutionary and is uniquely suited for the embellishment of soccer uniforms.”
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Lisa Thomas Co-owner, United Sporting Goods, Inc., Christiansted, Virgin Islands
What are the biggest sports in your area?
Owning a store on the Virgin Islands
At this time we would say basketball for boys and soccer
as foreign or international. Doing business with them is not possible or
for boys and girls. Moreso soccer because the local AYSO
a challenge (i.e., not accepting credit cards even if it is a US bank). Some
(American Youth Soccer Organization) is really pushing its
want you to wire funds which is not convenient. Also the “suggested
youth programs and participation has really risen. Prior, it
retail price” does not apply to us because we have to factor in the extra
would have been baseball, but after being hit by two major
charges of overseas freight cost, excise & US Customs taxes, outside of
hurricanes, some of the facilities are not fully operational and
the regular shipping charges from the company to our freight forwarder
a lot of persons have relocated.
when bringing in goods.
Two main challenges are some companies on the contiguous US view us
How does weather impact business? If we have a big storm we may close for a couple of days. However, after our two Category 5 hurricanes the negative impact was great. We did lose inventory to storm and people damages. We were able to partially open after about two
Benefits of NSGA membership NSGA has been a tremendous help in terms of finding companies we can do direct business with or find products in order to increase our inventory and pass on better prices to our customers. This also enabled us to ship to our neighboring islands.
34 | NSGA NOW ®
>> May/June 2020
months with limited hours due to no power. Being on an island helped that we also sell a lot of fishing supplies and that was one activity people were still doing. Also ,the recovery workers that came in to help with cleanup and restoration also like to fish. Since then we have been slowly rebuilding our inventory. This year looks like we will finally be completely restocking our regular items.
Major League Baseball connection My brother and I inherited United Sporting Goods, Inc., from our father, Valmy Thomas, Sr. He established it in 1957 and his goal was to provide affordable merchandise to our community and visitors. Valmy Thomas was a catcher for five years with the Giants, Phillies, Orioles and Indians.
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NSGA’s Mission is to help our members grow their business
and to advocate
on their behalf. Government
Rulemaking
For more information go to nsga.org/advocacy or advocacy@nsga.org.
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