Pro Content
Italian Market: High Profile Store Closures & Slow Trade Hits Boardsports Market
The economic update has not changed much from the last quarter with export numbers decreasing, as important export markets like Germany are buying less than expected. So April had seen a decline of 1.7% in exports with only car exports growing but from a weaker base when compared with other sectors. Gas and oil prices have now been stabilized and so are not as big an issue anymore but the inflation and increasing interest rates have lowered consumers purchases and so many companies sales has dropped.
By Franz Josef Holler
The very heavy flooding during May caused also a lot of damage in the Emilia Romagna region with many farmers set to lose their yearly incomes, also many homes were destroyed and quite a few people sadly lost their lives during this natural disaster.
Boardsport and streetwear dealers from north to south have been struggling in the first two quarters of 2023. Turnover is mostly down and costs are still higher than usual. Average spending power has decreased and families are trying to hold on to their money. From hardgoods to streetwear there is barely a single category which has maintained similar numbers to the previous years. When talking to retailers they mainly agree that the target group of customers has shifted their spending habits more into traveling, nightlife, restaurants and other social activities. Retailers do not have enough access to brands that sell or trend the most right now such us Nike, Jordan, New Balance and Adidas, etc.
Hardgoods sales are down in both skate and surf. Surf suffers from low wetsuits sales while skateboarding just has too much product on the market in general which results in everybody selling a little bit but not enough.
This year we have already seen the closing of historical skate and snowboards stores that have been in the game for many years. For example Zoopark from Varese, a store which was an institution for many years in this city and all over Italy, or Kosmos from Rovereto or Move from Verona. This is something we haven’t seen in recent years. Being even more specialized and unique is nowadays more important than ever for retailers and having access to special products or desired brands is crucial for a successful boardsport retail business.
Nearly every boardsport or streetwear brand is part of this market downsizing in Italy right now and while bigger stores are cutting budgets, the smaller stores are narrowing down their selection of brands. Carhartt is one of the few brands from the boardsport / streetwear world who has really stood the test of time and has become even more important for many retailers nationwide. A positive trend is that many new European brands who enter the market, have been discovered and are growing pretty fast. This is because many retailers want to innovate their brand portfolios and brands like Wasted Paris from France are going from strength to strength. Polar Skate Co. is still doing well, while deck sales are split between many different brands.
In wheels, Spitfire really dominates the market with their F4 formula wheels which are a must have for most skaters out there on the streets. Outdoor and workwear influenced brands are still a hot topic for many skate and streetwear dealers with plenty of shelf space. Successful navigation through this difficult and unpredictable year is now the gameplan for most retailers out there. Cutting costs, buying wisely (less pre-book / more stock) and marketing themselves differently is now the only way.
As temperatures have risen the contest season has started and many local events are again being planned giving strength to the community. This is it for this issue and let’s hope for better economic times, as summer will be great anyway.
