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Spanish Market Insight, Summer 2020

An interrupted summer for Spanish tourism crushed hopes for a strong post-lockdown recovery, but the trend for the rise in boardsport’s popularity remained unaffected. With growing numbers of nationals choosing a board and heading to the outdoors to have fun with no risk, this could be the moment when the boardsports industry comes out of its niche. By Rocio Enriquez.

Spain’s GDP freefall in Q2 met expectations, but the results for Q3 won’t. Fresh COVID outbreaks and travel restrictions in late July halted the post-lockdown recovery. The Bank of Spain has revised its 2020 forecast from a GDP drop of 10.5% to 12.6%. Prime Minister Pedro Sanchez has ruled out another national lockdown, but health advisors say more measures are needed to protect the health system. The impact of these measures on the economy will determine the final figure. Still, there is growth expected for 2021. Spaniards are more optimistic now than in 2008, when families, companies and government were all highly indebted. This time, families and companies have very little debt, although the government debt is still far higher than other European countries. The European Commission has set some criteria for Spain to meet, in order for them to receive 60 billion euros from the Recovery Fund. It might seem interventionist but having the EU enforcing reform might be what Spain needs to move from resilience to reinvention.

Summer turnover confirmed the rise in popularity of boardsports. Individual outdoor sports offer the least risk of infection. Andrea Palazzo, of Godzilla Surf Shop in Tenerife, recalls how locals took to the water the moment they were allowed out, a trend that is still continuing. Skateboarding is very popular too. Guillermo Colomer, of Play Gop agency, speaks of a resurgence of classics, with core brands taking back the sales quota they lost to mainstream brands that infiltrated the scene. The rising numbers of new fans in surf, skate and SUP produced a historically low stock situation of initiation boards. Sales of SUP boards at Godzilla were equal to the whole of 2019, within just a month of reopening. Snowboarding offers the same appeal but has one disadvantage. It depends on open resorts. Nano, of Dak Tak Shop in Madrid, explains: “If resorts don’t open, there will be no season. Few of us will walk up the mountain for the ride down”. Resorts in the Pyrenees have confirmed their intention to open. Sierra Nevada hasn’t yet but seems ready with a plan. Suso Rada, of Frost Rice Shop, feels there’s a lot of hype to get back to the mountains. To him, snowboarding could experience the same demand at beginner level that the other boardsports have already seen. Guillermo thinks that snowboarders who traditionally travel for their winter holidays will stay in Spain, to avoid infection during travel. Snowboard shops would benefit from this.

Most surf shops balanced the lockdown losses with great summer sales. Limited numbers of customers in-store improved the shopping experience. Being able to give the customer his undivided attention, helped Andrea secure expensive hard goods sales. The increase in this category (hard goods) could drive people to small, specialised stores that offer the advice and assembling service required, especially with the rise in beginners. Less populated, smaller stores also have less risk of infection. Diego Panera, of Styling, says that in-store measures made customers feel safer. Snowboard-only shops didn’t have a summer to balance out the lockdown losses. Frost Rice sits in Sierra Nevada, so they will have to wait until the season kicks off to reopen and clear the stock that has been sitting in boxes since March.

The main fear is of another lockdown, but there is a general feeling of unity amongst brands and stores. All stores interviewed received some sort of help from brands to save the season. They all agree that sharing the pressure with brands is the only way for the industry to survive. Guillermo explained that all his brands have prioritised the survival of the local shop. Brands, distributors and stores seem ready to make the best of this boardsports revival. It would be nice to have some government support to help see it through.