Golfsmith Multi-Channel Shoppers Outspend Single-Channel Four to One

Multi-channel Golfsmith customers outspend their single-channel counterparts by a factor of four, according to analysis conducted by the retailer.

"If you were a two-channel customer, which could be our catalog, 1-800 number or a Web customer, you will spend four times" what a one-channel customer spends, said Golfsmith CEO Martin Hanaka during a recent conference call discussing the retailer's Q3 financial results. "If you are shopping us across all the channels you are probably at least 10 times lifetime value to us, so we are trying to cultivate that in every way possible.

"We have kiosks in our store, we have software. We want you to buy the way you want," Hanaka added. "We want you to pick it up in-store, we'll ship it to your office. We'll do whatever because we want you to be close to us and shop the way that's convenient for you and nobody else."

The retailer saw an 8.3% increase in net revenues during Q3 compared to the same period last year, reaching $101 million. Comp store sales increased 3.4% and the retailer achieved an 11.2% increase in net revenues from its direct-to-consumer channels.

Some of these improvements stem from lower inventory levels in Golfsmith stores, which decreased 2.4% on an average, comp store basis compared to the same period in 2010. "We expect to continue to benefit from the inventory management focus that led to improvement in aging of inventory and reduced inventory per store," said Sue Gove, Golfsmith's COO/CFO.

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