NSGA Now March/April 2017

Volume 5 | No. 2 | March/April 2017

A PUBLICATION OF THE NATIONAL SPORTING GOODS ASSOCIATION

David Labbe Takes Lead During Industry Changes

NFHS Increases its Authenticating Mark Program Fees Market Research Benefits for Smaller Organizations

Clearent is acquiring Payment Alliance’s Merchant Services business. Just like Payment Alliance, Clearent is a sporting goods business credit and debit card processor committed to supporting NSGA members with exclusive rates and payment solutions.

TABLE OF CONTENTS

4 5 6 8 10

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CEO Corner

Lead By Example, Retail Spaces Doing It Right

Association Now

NSGA Steps Up to the Plate

Advocacy Now

NFHS Fee Increase Issue in Authenticating Mark Program

For Your Business Now

Stand Out in 2017

Conference Now

16 18 20 22

Industry Now

Augusta Sportswear Group Consolidates to Create the Power of One

Operations Now

Forget Omni-Channel, It’s all “Just Retail”

Insights Now

Market Research Benefits for Smaller Organizations

Locker Room Now

Proposed NFHS Football Rules Revisions, Little League Patch and more

Something For Everyone At the 2017 Conference & Summit

Chairman Now

David Labbe Takes Lead During Industry Changes

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CEO CORNER

NSGA OFFICERS

There is no such thing as one magical ingredient to business success; no pixie dust you can sprinkle to make business instantly grow. Those of you who own your businesses know it takes significant hard work, blood, sweat and tears. Building business takes time and success is driven by continued adaptation. It is important to carefully navigate the ever-changing environment and learn from others who may have navigated the path.

Chairman of the Board David Labbe

Kittery Trading Post, Kittery, ME

Treasurer/Chairman-Elect Cathy Pryor

Hibbett Sports, Birmingham, AL

Past Chairman Randy Nill

Nill Bros. Sporting Goods, Kansas City, KS

BOARD OF DIRECTORS Dale Donaldson

Mallard’s Source for Sports, Castlegar, British Columbia, Canada

Pat Donnelley

Donnelley Sports, Twin Falls, ID

Rhett Johnson

Johnson-Lambe Co., Raleigh, NC

Jeff Miller

Scholastic Sports Sales, Ltd., Manlius, NY

John Oehler

Dunham’s Sports, Troy, MI

Rob Summerfield

MC Sports, Grand Rapids, MI

Jerry Williams

Schuylkill Valley Sports, Pottstown, PA

NSGA TEAM LEADERS Matt Carlson

President & CEO

Meghan Beach

Director, Membership & Education

Katie Bruce

Director, Marketing & Communications

Dustin Dobrin

Director, Research & Information

Marty Maciaszek

Director, Team Dealer Division and HDA

Julie Pitts

Director, Business Development

Larry Weindruch

Director, Public Affairs

Dan Wiersma

Chief Financial Officer

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Learning from those pioneers helps make our members settlers, and there is a difference. Other industry sectors may not sell sporting goods, but it is important to recognize and sometimes mimic their “secrets” of success. NSGA benchmarks two other key associations (North American Hardware Retailers and American Booksellers Association) sharing ideas and concepts to help our members.

We also look outside the sporting goods industry for good retail examples.

One such company is located close to the NSGA headquarters: Abt, an electronics store in north suburban Glenview, Illinois, has created a unique customer experience that has kept them successful in the region. Consumer Reports raves about the customer service Abt delivers. The space includes a 7,500-gallon saltwater fish aquarium, a favorite of children, and opulent fountain mirroring that of a Las Vegas hotel featuring high-end product. Abt didn’t start from much ($800 and radio sales), and I’m certain they have their share of challenges just like most American businesses, but the company has grown to a 385,000-square-foot store and attached warehouse. There is a focus on product knowledge, and employees are extensively trained on product. Abt provides an unparalleled electronics and appliance shopping experience, combined with exceptional customer service.

In this issue, we also feature NSGA Chairman David Labbe. Labbe’s industry home, the more than 100,000-square-foot Kittery Trading Post (KTP), in Maine, is another example of how the customer experience can help make a business successful. KTP is still a fully functioning trading post. Customers can visit the store, sell items on consignment, and find a plethora of other outdoor items, equipment, apparel and shoes. The store hosts educational seminars to make outdoor fans smarter, and has recently added an area to purchase fresh lobsters in the summer. Product variety caters to all levels whether you are a beginning fisherman or seasoned veteran. Labbe helps lead the organization with finance, technology and constant improvement. KTP has found a way to stand out from the crowd and has evolved to meet today’s business challenges. We wish them many more successful years!

How will you stand out and adapt? If you are a product manufacturer/supplier, are you providing the highest level of support to help that retailer/dealer be successful? If you operate a store, are you making the store a pleasant experience customers can’t wait to visit? These collaborative strategies may help channel the evolution in a direction we all need it to go. If there is any way NSGA can help funnel that success, please do not hesitate to reach out to NSGA Staff. Consider us an extension of your team!

Best regards, Matt Carlson President & CEO Katie Bruce | Editor/Publisher NSGA NOW® (ISSN 1045-2087) is published bi-monthly for members of the National Sporting Goods 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,® 1601 Feehanville Dr., Suite 300, Mount Prospect, IL 60056-6035. © by NSGA 2017. Printed in the USA.

ASSOCIATION NOW LEFT: NSGA team members Katie Bruce and Nick Rigitano hard at work packing nutritious meals for children.

RIGHT: NSGA team members (from left to right) Katie Bruce, Meghan Beach, Nick Rigitano, Angela Mennecke and Julie Pitts in the Ronald McDonald House kitchen after a night of cooking.

Announcing the Winner!

NSGA Steps Up To The Plate In December, NSGA took time to give back to the community through two different volunteer activities.

By Angela Mennecke, NSGA Marketing & Communications Coordinator

Congratulations to Chris Bachman, Owner of Harco Athletic Reconditioning, Inc., for winning NSGA’s 2017 Renewal Drive Raffle Contest. Harco Athletic Reconditioning, Inc. is a Fort Collins, Colorado company with 33 years’ experience reconditioning football helmets and equipment. Harco uses only original manufacturer replacement parts, and all helmets are tested to ensure compliance with NOCSAE* standards. Harco has been an NSGA member since 1999. Bachman shared with us what he considers to be the best part of working at Harco: “Staying involved with all the sports, coaches and athletes. I feel that the service Harco provides is a valuable asset to the student athlete as well as the school.

I hope the efforts of NOCSAE and NAERA,** along with the [support of] manufacturers, can allow athletes to continue enjoying their sports.” Congratulations again to Chris Bachman for winning our contest!

Feed My Starving Children Through Feed My Starving Children’s “Our MobilePack” program, NSGA joined more than 500 other volunteers on Dec. 9, 2016 at a suburban Chicago convention center to pack nutritious meals for malnourished children around the world.

Through the collective effort of more than 7,500 volunteers from Dec. 9–11, more than 1.5 million meals were packed and delivered to children in need.

Chicagoland Ronald McDonald House Every night, 153 families find comfort, compassion and community at the five Ronald McDonald Houses® and three Ronald McDonald Family Rooms® located throughout the Chicagoland area. That’s 43,000 nights where families can stay close to their child in the hospital saving them hotel and food costs. On Dec. 14, 2016, NSGA staff members prepared and served a home-cooked meal to the 20 families staying at the Ronald McDonald House near Central DuPage Hospital in Winfield, Illinois through the Meals from the Heart program. After a long day at the hospital, families enjoyed sitting around the table and spending time together without the stress of cooking and doing dishes.

Share on social media how your company gives back using the hashtag #giveback and tag NSGA!

*National Operating Committee on Standards for Athletic Equipment **National Athletic Equipment Reconditioner Association

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ADVOCACY NOW

NSGA Helps Minimize NFHS Fee Increase in Authenticating Mark Program

NSGA interceded on behalf of its members when learning the National Federation of State High School Associations (NFHS) proposed making a significant increase in the fees with its Authenticating Mark Program (AMP). The AMP is for the manufacturer’s use of the NFHS logo on balls approved for use in high school games.

By Marty Maciaszek, NSGA Team Dealer Director

The increase approved by the NFHS Board of Directors is from 35 cents to 50 cents per unit for basketballs, footballs, volleyballs, soccer balls and water polo balls and from 35 cents to 50 cents per dozen for baseballs, softballs, lacrosse and field hockey balls and hockey pucks.

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November/December March/April 2017 2016

NSGA expressed its concerns on how the amount of the originally proposed AMP increase, from 35 cents to one dollar, would impact the sporting goods industry and high schools and their athletic programs, in a letter sent to NFHS Executive Director Bob Gardner in early January.

In addition, an NSGA delegation including Team Dealer Advisory Committee members, Bob Fawley and Doug Martin; and NSGA staffers Marty Maciaszek and Matt Carlson visited the NFHS headquarters for a face-to-face conversation about the AMP increase, state ball designations and potentially illegal acceptance of gifts by coaches and athletic directors.

The new AMP fee will take effect on balls and pucks manufactured after Jan. 1, 2018. All balls/pucks in inventory with the NFHS Authenticating Mark may be used in official competition. All balls/pucks currently in schools with the NFHS Authenticating Mark may be used and all balls/pucks already produced with the NFHS Authenticating Mark may be sold.

The minimum and maximum sizes of the NFHS Authenticating Mark will not change. Manufacturers are required to display the NFHS Authenticating Mark on all balls mentioned earlier and hockey pucks.

One of NSGA’s concerns is the increase would ultimately be passed down from manufacturers and team dealers and retailers to the end user (the schools).

It could also impact the sales volume for team dealers and retailers if schools purchase fewer units because of the increase. These concerns, questions on how the additional revenue would be used and the suggestion of the smaller increase were included in the letter from NSGA President & CEO Matt Carlson to Gardner.

Gardner said this is only the second fee increase by the NFHS since it started the AMP in the 2000–01 school year.

The other increase from 25 cents to 35 cents occurred eight years ago. There is no specific length of time for the current increase to remain in place, according to Gardner.

The NFHS started its Authenticating Mark Program to ensure three things: • To establish consistency in the equipment being used in contests because conformity of equipment is essential to the integrity of competition.

•T o generate revenue to support services to benefit student-athletes, athletic administrators, coaches and officials.

•T o allow for the development of more sophisticated standards for balls and pucks, and clearly communicate to administrators, coaches and officials that those standards are being met.

One of the NFHS Baseball points of emphasis for the 2017 season is for baseballs to display the NFHS Authenticating Mark.

The concern is using non-AMP balls puts players, coaches, fans and umpires at risk of injury and leads to inconsistent playability.

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FOR YOUR BUSINESS NOW

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Stand Out In 2017

By Michael Parrish DuDell, Entrepreneur, keynote speaker and bestselling author of Shark Tank Jump Start Your Business

The New Year has begun, and companies across the country are looking for innovative ways to differentiate themselves from the crowd. While there’s no one-size-fitsall solution, there are ways to grow your organization, strengthen your positioning and remain hyper-relevant in 2017. Think small to grow large.

Rather than casting a wide net and trying to appeal to the masses, try adopting a “long tail” approach. Instead of trying to gain more customers, try experimenting with the opposite approach: sell more goods and/or services to fewer people.

For example, if you own a dry-cleaning business, it may be wise to grow the company by fine-tuning your offerings to better serve a smaller, niche group (e.g., eco-conscious shoppers).

You could roll out a larger scope of environmentally friendly cleaning services geared toward a more specific consumer. This not only focuses your brand and market positioning, it provides a sustainable way to expand.

Double down on customer service. For small businesses, the key to consumer loyalty boils down to one thing: service.

A 2015 report by Parature, a cloudbased software product designed to help teams provide better customer

service, found that 62 percent of global consumers have “stopped doing business with a brand or organization” due to a lackluster service experience.

While many large organizations are forced to sacrifice service for scale, small companies can lead by increasing their commitment to better, more personalized experiences at each and every consumer touch point. Refresh your digital presence.

According to the data in a November 2016 Adweek report, more than 80 percent of shoppers conduct online research prior to making a purchasing decision, so having an up-to-date digital presence is more important than most realize.

Have you added new products?

Changed pricing? Moved to a new location? January is the perfect month to refresh and recalibrate your company’s website and social platforms to ensure that your online and offline identities flow seamlessly together.

This will elevate your credibility, and ensure that current and future customers have access to the latest and greatest your business has to offer.

It’s a small task that can make a big impact on the bottom line.

Michael Parrish DuDell Michael Parrish DuDell is an entrepreneur, keynote speaker, and the bestselling author of Shark Tank Jump Start Your Business. DuDell will be speaking on Tuesday morning during the Management Conference & Team Dealer Summit. This content is used with permission, and originally appeared in Costco Connection. You can find more from DuDell at costcoconnection.com, search “Michael Parrish DuDell.”

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CONFERENCE NOW

Something for Everyone at the 53rd Annual NSGA Management Conference and 19th Annual Team Dealer Summit No matter your segment in the sporting goods industry, the NSGA Conference & Summit has something to interest you. Join us at the Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch in Scottsdale, Arizona and walk away with ideas to do better business and build lifetime connections.

NSGA Innovations Arena™

The up-and-coming in the industry • Find emerging new products to expand your offerings • Obtain cutting-edge products that no one else has in your inventory • Showcase your product to hundreds of independent buyers in one place

Structured Product Networking

• Have the convenience of arranged fact-to-face meeting with top brands & dealers attending in one place

March/April 2017

• Retailers • Team Dealers • Sales Agents • Manufacturers

• Get your product on the shelves and in dealer hands

Unique opportunities to have needed conversations

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Program(s) great for:

Program(s) great for: • Team Dealers • Manufacturers • Retailers

The Combine

Best-in-class education geared toward your segment in the industry • Discuss hot button topics in the industry to find solutions together • Gain real-world, actionable insights from experts as they share the ins and outs of everyday, needed applications

Program(s) great for: • Retailers • Team Dealers • Manufacturers • Wholesalers • Sales Agents

Nightly Receptions & Networking Breaks Expand your connections

• Build upon new business plans and test out potential business strategies with industry leaders • Increase exposure and interactions with key clients • Casually network with top executives and decision makers from across the whole industry • Discuss ways to make your business even better with key industry individuals

Sporting Goods Industry Hall of Fame Induction Ceremony Honor industry greats

• Distinguish yourself by showing your vitality and support of the industry

Program(s) great for: • Manufacturers • Industry Associates • Retailers

For a complete schedule, go to nsga.org/conferenceschedule

• Team Dealers • Sales Agents • Wholesalers

Program(s) great for: • Everyone!

• Honor those with whom you do business

“Get Active!,” “Mr. Newsome’s Neighborhood Walk” and the NSGA Official Golf Tournament Relax, Recharge, Refocus and Reconnect

• Take advantage of the many opportunities at the conference to get your heart rate up, stretch your legs and stay active

Program(s) great for: • Everyone!

• Relax and recharge poolside, on the golf course or exploring the Sedona Desert • Keep up with Hall of Famer Mickey Newsome on his anticipated annual walk around the resort grounds

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CHAIRMAN NOW

David Labbe Takes Lead During Industry Changes

By Katie Bruce, NSGA Director, Marketing & Communications

David Labbe’s career path was not always sporting goods. In fact, his first job was bagging groceries at Foodtown in Auburn, Maine.

He put himself through college working summers there and was lucky enough to land an internship at SCM Corporation as an internal auditor. The internship, only awarded to two individuals annually, gave him the foundation for his future career in finance.

The job market in 1980 looked bleak for most of his classmates graduating from St. Michael’s College in Vermont with a degree in business, but Labbe was offered a job at SCM prior to graduation and steadily moved up the ranks, traveling one hundred percent of the time auditing locations around the world. His last two years, he took the train from Danbury, Connecticut to the SCM headquarters on Park Avenue in Manhattan. It was that commute, and the thought of ending up like the people around him going into the city everyday, which led him to call a headhunter and pursue options in Portland, Maine. He found himself employed as a supervisor of financial analysis with Congoleum in Portsmouth, New Hampshire. Within six months, they were working to sell pieces of the company. Labbe was fortunate that one of the Congoleum vice presidents fished with the owner of Kittery Trading Post (KTP), who happened to ask if he knew of any good finance people.

David’s Favorite Things

MUSIC Bob Dylan and Zac Brown Band 12 |

MUSICAL INSTRUMENT Acoustic guitar

Labbe, a Certified Public Accountant (CPA) and Certified Internal Auditor (CIA), was hired at Kittery Trading Post in 1986. At the time, the store was about 20,000 square feet, a far cry from the more than 100,000 square feet it inhabits today. Since that time, the store sales have tripled and the staff has grown from 100 to 300 employees. In addition to Labbe’s functions in finance and administration, he also oversees all the distribution, management information technology and e-commerce business. He also serves as trustee of their profit-sharing plan for employees. At age 35, Labbe was nominated by the Governor of Maine to represent the retail industry as Incorporator of a newly formed entity named Maine Employers Mutual Insurance Company (MEMIC) to solve the worker’s compensation crisis in Maine. That company is now one of the top 10 worker’s compensation insurance companies in the country and Labbe currently serves as its chairman of the board. Labbe’s experience and success has positioned him well as NSGA Chairman.

From left: Jack Labbe (David’s son) and David Labbe on the 8th tee at York Golf and Tennis Club in York, Maine.

FOOD Raw oysters, steamers and of course LOBSTER

VACATION DESTINATION Whistler, British Columbia and Bahamas

Q. It appears you almost fell into the sporting goods industry. What about the industry do you love the most? What has kept you a part of the industry?

A. First, I enjoy an active lifestyle and sports, both watching and participating in them so that is certainly a draw. I played varsity basketball and golf in high school and we were state champions in golf. In college, I played varsity golf for four years and intramural basketball. I raised my four boys to play all sports, but we most enjoyed being avid skiers and taking ski vacations. I live on Gerrish Island with my wife, Mary Jean, and we enjoy walking our two yellow labs. I am fortunate to get out on my stand-up paddle board every now and then and still very much enjoy golf and skiing, all great ways to experience everything outdoor in Maine. I think the diversity of the industry is appealing, and KTP has kept me interested and invested in the sporting goods industry because it has been my home for 30 plus years.

SPORT TO PLAY Golf, kayaking, paddle boarding and skiing

SPORT TO WATCH NFL football and golf

Q. Why did you decide to get involved in a leadership role with NSGA? A. It was important that I took an active approach at improving the industry and creating the best environment for KTP to thrive in. There are issues I know I can help address in a leadership role with NSGA, and it’s important to support the trade association that supports us in any way possible. NSGA has a dedicated, hard-working staff and I appreciate that their effort will make my job as Chairman an easy one. We have a committed board, even though everyone is very busy, and they want to contribute to the success of NSGA and of the industry as well.

SPORTS TEAMS New England Patriots, Boston Red Sox, Boston Celtics and Boston Bruins

PET Yellow Labs

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CHAIRMAN NOW

Q. What are your goals as Chairman of the NSGA Board?

A. As Chairman, it’s important that I set up our members and the organization for success. I will need to help the organization navigate in a time when changes are happening every day. Much like KTP, I need to help NSGA stand out and provide direction to make the best decisions, whether that is from a financial standpoint or simply from my experience in the industry. As an example, I recently attended ISPO, the world’s largest sporting goods tradeshow in Munich, Germany, to strengthen our relationships outside of the United States.

Q. Talk a little bit more about how the product mix at Kittery has changed?

A. T he product mix is a direct reflection of our customer and his/her experience. We are sure to carry products that relate to each other and are relevant to our buyer.

We want the hunter/fisherman to continue to get everything they need for their sport right from us. Our camping, watersports and winter sports departments have grown to include the same depth of products experienced in our hunting and fishing departments. I am most proud of all our additions over the years and the increasing amount of

INTERVIEW WITH NSGA’S CHAIRMAN David Labbe, Senior Vice President of Finance, Kittery Trading Post

Q. How has KTP been able to continue to grow and succeed with the changes in the industry?

A. K TP has a diverse mix of product and a unique shopping experience. This sets us apart from many of the other retailers out there. Kittery has also concentrated on doing things right in a controlled space, not getting too big for what we want to accomplish or the experience we want to continue to deliver. I’ve helped KTP take an appropriate approach to growth and that has worked for us.

It’s important to understand where KTP is geographically located. We’re at a major intersection just off I-95, surrounded by the growth of outlet mall stores. Although it brings brand competition, it also drives traffic and customers to our destination.

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square footage devoted to clothing and footwear. Just recently our women’s footwear department sales exceeded our men’s footwear sales. This is a testament to our soft goods strategy. We have also added Maine charm; you can now buy homemade fudge and lobsters during the summer, onsite. This adds a whole new value and positions us to continue to explore ways to increase our brand. We also offer live seminars for different activities to do just that.

Q. You participated in NSGA’s Lobby Day in 2016. What was that experience like?

A. T he lobby day was a great experience for me personally. I spoke directly with my representative and saw NSGA advocacy in action.

Participating in the meetings and bringing our message and concerns directly to the top is why I encourage all business owners to attend. If you can’t attend, contact your elected

officials regarding our messages.

NSGA’s Lobby Day is a perfect opportunity to speak directly with those who can help your business succeed.

Q. What needs to happen today for the sporting goods industry to be successful in the future?

A. Companies in the industry need to learn to adapt and be proactive in creating the success for their future.

Innovation, especially innovative technology, is leading the way and if companies don’t acclimate, they could be looking at trouble. While the changes in the industry can be rapid and unpredictable, staying ahead or at least keeping up with the trends, especially in sports participation, is important. It’s essential to have a track record of understanding the customer and shaping consumer trends.

Q. What are NSGA’s best qualities and how can it best aid retailers and team dealers?

A. NSGA has some core services that every member should explore including credit card processing and shipping. The research that NSGA produces can be a valuable tool when looking at your product mix and where participation trends are.

I encourage any member to take advantage of this offering. NSGA’s research has a long history and that really gives it an edge that the historical data is there as well as yearly new data. Also, it would be great for more members to reach out about issues they’d like NSGA to get involved in. Whether it is a plastic bag tax in your state, like what we encountered in Maine, or something affecting a larger population, like sales tax fairness, NSGA is there as an advocacy resource. NSGA’s Management Conference & Team Dealer Summit is another great opportunity for education and networking in the industry. Every year NSGA continues to enhance the event and change it based on the current industry environment.

Together as one!

3 brands, 1 company!

We’ve combined the Holloway®, Augusta Sportswear®, and High Five® businesses.

Now you can access all three brands with one sales contact!

3 brands!

Mix and match products from all Coming Soon:

www.hollowayusa.com

catalog,

website, order, and invoice!

For more information visit: www.augustasportswear.com

www.high5sportswear.com

INDUSTRY NOW

Augusta Sportswear Group Consolidates to Create the Power of One 16 | NSGA NOW ®

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Augusta Sportswear Group (ASG) has merged its Augusta Sportswear, Holloway Sportswear and High Five Sportswear divisions to create an improved experience for its customers.

The new experience will eventually give customers access to all three brands in a single transaction.

“Our internal project name for the consolidation is the Power of One, because it truly unleashes the full combined strength of our organization for the first time in our history,” says Dave Elliott, CEO of Augusta Sportswear.

The Power of One consolidation will eventually result in one catalog, one invoice and ultimately one shipment, for customers. This shift began in December 2016 with the creation of one sales force.

A move to one set of business terms will occur in the first half of 2017, including a simplified pricing and freight policy across all brands. By the end of 2017, one catalog with all three brands, as well as one phone number and one website will take effect, resulting in a truly unified experience for customers.

The new structure for the company will be built around three market-based divisions: outdoor, team uniform and off-field. This shift will reorient the business around a deep understanding of the consumer, invariably resulting in better products and solutions.

In addition, the combined product assortment will be recalibrated across the brands to create a powerful assortment with the broadest array of styles, colors and options. Dealers and decorators will be able to mix and match brands and products to design the perfect assortment for any situation.

Each of the ASG brands will continue to maintain their current brand positioning. The Augusta brand will be focused on youth recreational leagues, travel clubs, and middle schools. The Holloway brand, with its rich tradition in varsity jackets and superior outerwear, will be targeted primarily towards high schools, elite clubs and universities. The High Five brand will remain consistent with the legacy and strong heritage of the brand by focusing mainly on soccer and volleyball.

“ This move is just the beginning” says Elliott.

“This is a new era for ASG. One that is deeply focused on the customer and consumer, and one that is committed to providing the best service, products and marketing tools for our customers.”

Augusta and Holloway are Platinum sponsors of the 2017 Conference & Summit. Be sure to connect with them while you are there!

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OPERATIONS NOW

Forget Omni-Channel, It’s all “Just Retail”

By Mara Devitt, Senior Partner at McMillanDoolittle

The latest statistics on how consumers shop are making it clear shopping patterns have changed forever: • More than 10% of U.S. retail sales are occurring though “e-commerce.”

• The average time spent on a computer/tablet or mobile phone per day by U.S. adults is more than 7.5 hours and growing!

• Mobile has become the primary medium for consumers to engage with retail brands online with two-thirds of online shopping activity now happening on mobile.

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As a result, the role of the physical store has changed from a consumer’s perspective:

More than 70% of consumers surveyed have purchased online for in-store pickup.

80% have purchased online while in a store (Not necessarily from the store they are in at the time.)

More than 80% have returned items purchased online back to the store.

89% have reviewed products/promotions online before visiting the store.

60% have reserved inventory to later view in the store.

For companies just beginning to address these new shopping patterns, the top priorities should be on building foundational capabilities that enable the consumer to shop across channels: • Inventory visibility — enable both internal personnel and shoppers to see what items are available in each store location and are available for purchase online.

• Buy online or reserve online and pick up in store.

• Easy returns — accept online purchases for return in store. Make it easy for customers who want to return on-line to do that from their home or office.

• Customer Information to support communication — collect customer emails or phone numbers so you can communicate with them regarding events, promotions and new items. Better yet, establish an “account” for each customer so they can easily track what they purchased from you and you can begin to develop a database of customer information and purchase activity.

• Online website that works well on a mobile device.

Getting these basics done well are a good first step toward retaining your customers and attracting new shoppers. Next level priorities should focus on improved analytics and customer engagement features such as adding customer reviews both online and in store, developing targeted promotions and events leveraging the insights from the improved customer information.

® ® NSGA NSGANOW NOW

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INSIGHTS NOW

Market Research Benefits for Smaller Organizations

By Dustin Dobrin, NSGA Director of Research and Information

“Big data� has been a hot topic in recent years and many organizations within the sporting goods industry are trying to come to grips with how to apply it to their businesses. The term refers to the large data sets collected by organizations to analyze data points, identify trends, and gain insights.

Examples of big data include customer point-of-sale records to understand buying behavior patterns and trend forecasting algorithms to gain insight from social media posts and web browsing habits. If you are within a larger organization, specifically one that can harness the wealth of data coming in, the insights can prove to be very beneficial.

However, if your organization is smaller, realizing the benefits of big data can be challenging due to time, resources and budget constraints. In addition, the big data movement may seem overwhelming, impractical and cost inefficient.

For smaller organizations, the more important issue may be determining if the benefit of smaller data sets obtained through market research would be relevant and/or outweigh the investment they would require. In most cases, something as simple as gaining a better understanding of your industry can drive big impact.

You are likely already aware that insights derived from market research can allow you to quantify market size and growth rates, identify trends occurring in the marketplace, and enable you to make more informed decisions. All of this is true; however, there are intangibles of research data, both internal and external to your organization, that you may not have thought about. Three intangible results proven to be beneficial are listed on the following page.

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Be Viewed as an Expert Among Your Business Partners

Shift Culture to Act Proactively Rather Than Reactively

Everyone strives to create more opportunities with their business partners. Consequently, your business partners have a multitude of discussions with you and your competitors throughout the year. Differing opinions, perspectives, and recommendations they receive from these conversations can create wariness, confusion and doubt. However, by coming into business meetings demonstrating your expertise of the sporting goods industry through fact-based research; from participation trends, to consumer purchase insights, to shopper behavior, you will be viewed as a step ahead of other organizations. This will result in enhanced credibility and reputation and your business partners will view you in a better light than your competitors.

The presence of market research data can allow your organization to be more effective at making proactive decisions rather than being reactive to situations. With little or no market research data, decisions become based more on gut and perception, making it difficult to make riskier (and potentially lucrative) choices.

With fewer opportunities to make bold decisions, the outcome typically results in an environment where the status quo reigns and changes occur only in reaction to certain situations, issues or problems. Using market research data to better understand what is happening and where things are heading can allow for adjustments before they become critical problems.

Find Compromise with Objective Insights Aside from the external conversations you have with your business partners, there are a variety of discussions that also occur internally. Your associates come to the discussion table with varying perceptions, beliefs, opinions, and recommendations. Strong emotional attachment can exist, shifting associates away from objective and rational points of view to more subjective ones. The presence of market research data can alleviate these types of situations by grounding everyone in fact-based insights, which can then be used to make more rational decisions.

The resources an organization possesses will dictate the type of market research data acquired and/or accessed. Budget limitations make it critical to choose research based on what will have the most relevancy and the biggest impact. To assist in this decision process, use the previously discussed intangibles to help position the organization for success: consider market research data that will help to facilitate your reputation as an industry expert with business partners, to solve conflict and create compromise with internal associates, and to enable the organization to be proactive rather than reactive.

For more information about NSGA research visit nsga.org/research.

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NFHS Football Rule Changes Two high school football rule changes pertaining to equipment and uniforms have been approved by the NFHS (National Federation of State High School Associations) Football Rules Committee and approved by the NFHS Board of Directors.

Footballs (Rule 1-3-1h) Advertising will be prohibited on the ball except for the ball manufacturer’s name or logo, the school logo, name or mascot, the conference name or logo, the state association name or logo and the NFHS name or logo. This change would ensure advertising can’t be added to the ball and only the allowable items could be on the ball.

Jerseys (Rule 1-5-1(b)3) Effective with the 2021 season, “the jerseys of the home team shall be a dark color that clearly contrasts to white.”

“The committee revised the rule to provide schools and manufacturers more clarification regarding the game’s current trend of utilizing lighter gray shades,” said Bob Colgate, director of sports and sports medicine at the NFHS and the staff liaison for football. “The requirement for teams to wear contrasting colors to white is not a new rule, and it is the committee’s expectation that the new clarification will allow changes to be made during the normal replacement cycles.”

The rationale is the jersey changes of the early 2000s were clearly intended to have one team in white and one team not in white. Lighter and lighter grey, as the grey and gun metal shades increase in popularity, are beginning to blur the lines between the jerseys. Numbers are becoming more difficult to see and coaches were frequently complaining about the inability to clearly see opponent numbers on scout film, which has become an unintended competitive disadvantage.

Other notes A proposal of Rule 1-5-1d(5)a, regarding tooth and mouth protectors having no words, logos, numbers or other symbols, was not approved for a change.

Most of the other approved changes were related to risk minimization, such as a new definition of a blindside block, the addition of a rule prohibiting a blindside block, the elimination of a pop-up kick on onside kickoffs and specific examples of what constitutes a defenseless player.

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Changes Atop United States and Canada Hockey Organizations USA Hockey and Hockey Canada will undergo changes at the top levels of their organizations this summer. USA Hockey executive director Dave Ogrean announced he will retire on August 1 and Scott Smith will take over as Hockey Canada president July 1.

Ogrean was USA Hockey executive director since 2005 and also from 1993–99. During his tenure, U.S. teams captured 55 international medals (28 gold) and the number of players within USA Hockey more than doubled. The organization also created the American Development Model, established the National Team Development Program and constructed a new two-story national office complex in Colorado Springs, Colorado.

Ogrean will remain with USA Hockey as an advisor and president Jim Smith hopes to have a replacement in time for USA Hockey's Annual Congress on June 7–10 in Colorado Springs.

Scott Smith has been with Hockey Canada since 1995 and was named Chief Operating Officer in 2007. He replaces Tom Renney, who will stay on as CEO. Smith said his most important goal is to get more people playing on an annual basis. He also hopes to get Hockey Canada programs for coaches and officials delivered to more people in those areas.

Little League Clarifies Uniform Patch Requirements

NFHS Allows Soft-Padded Headgear in Soccer for 2017–18

For all Little League Baseball, Softball and Challenger divisions, leagues may not screen-print or sublimate the Little League Official Shoulder Patch on uniforms. The patch must be affixed to the upper left sleeve or left chest of the uniform shirt. Patches shall be placed centered on the left shoulder sleeve; or, centered on the left chest of sleeveless-style jerseys.

The National Federation of State High School Associations (NFHS) announced it will permit soccer players to wear soft-padded headgear meeting the ASTM standard F2439-06 in games, starting in the 2017–18 season. This rule change, approved by the NFHS Board of Directors, allows but doesn’t require players to use newer headgear standards that are not just headbands.

Little League also announced new residence requirements where proof of player eligibility requires a school enrollment form and at least one or more documents from three groups proving residency that are outlined in the 2017 Little League rule book. A school report card may no longer be used as a school enrollment eligibility document.

Theresia Wynns, the NFHS director of sports and officials and liaison to the Soccer Rules Committee, said schools, students and parents are free to make their own assessments of this equipment. With this change, Exception No. 1 to Rule 4-2-1 is no longer necessary and has been removed from the rules book.

An addition to Rule 4-1-1d allows players to wear visible arm compression sleeves and visible leg compression sleeves as long as they are a single, solid color matching the predominant color of the jersey or shorts. This addition to the existing rule maintains consistency with current uniform rules requirements and color restrictions.

A change to Rule 5-1-3f allows officials to use electronic communication devices if permitted by the state association.

Wilson Introduces New Tennis Racket and Technology New Paddlesports Retailer Trade Show Collection Wilson introduced its new Burn 2017 high-performance Endorsed as Official Industry Show tennis racket line featuring Countervail (CV) technology. CV is A group of leading paddlesports manufacturers are endorsing the new Paddlesports Retailer trade show as the official industry show. The first Paddlesports Retailer show is scheduled Aug. 29–Sept. 1 in Madison, Wisconsin, which is the home of the spring consumer paddling show, Canoecopia.

a one-of-a-kind, layered composite material which reduces the amount of vibration transferred to a player while playing.

A recent study showed players using the Wilson racket with CV were less fatigued and had more control of their shots while playing.

The endorsement is the result of concern from paddlesports manufacturers that the 2018 date change of Outdoor Retailer in Salt Lake City from early August to June 11–14 would be in the middle of paddling’s peak season. The endorsement of Paddlesports Retailer is the result of an eight-week process to unify around a single show, elect an advisory council and begin the formation of a paddlesports trade association.

A wide range of retailers were also polled to determine upcoming trade show plans and preferences.

Wilson Advisory Staff Member Kei Nishikori, ranked fifth by the ATP, will play with a new 2017 Burn 95 racket with CV on tour this season.

Darren Bush, the owner of Rutabaga Paddlesports in Madison, and Sutton Bacon, the CEO of Nantahala Outdoor Center in Asheville, North Carolina are organizing Paddlesports Retailer. The show will have an on-water demo day followed by three days of exhibits at the Alliant Energy Center in Madison. The mid-week timing of the show will allow retailers to return to their stores for the weekend.

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