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Retail Strategy: Securing Inventory In 2020’s Skateboard Boom

Nobody saw it coming. Now skateboarding is officially booming, and supply is running low. Learn retailer strategies for securing inventory and serving customer needs amid unprecedented demand in this special guide by SOURCE Skateboard Editor Dirk Vogel.

What a rollercoaster ride! The skateboard industry was bracing for a boost from the Tokyo Olympics. Then the pandemic hit and sent retailers, manufacturers and distributors into lockdown. But out of the silence, skateboarding popped back into the mainstream spotlight as the year’s surprise trend: “Since the pandemic started, we have had a huge spike in sales mainly due to the stimulus packages with governments trying to fuel the economy and encourage spending,” said Kris O’Brien, Founder/Director at OBfive Skateboards. “People need something to bring them some fun and peace during these difficult times getting both the recreation and exercise we all need. Skateboarding brings freedom and serenity to a world that is a bit difficult to navigate right now,” said Eben Woodall VP of Sales at Carver Skateboards.

The wide availability of decent public skateparks and the socially distanced nature of skateboarding have created the perfect storm, also from a business standpoint: “The market and participation at the moment are very strong and this is backed up by the unprecedented amount of sales we have seen this year. There appears to be a new influx of youth picking up the sport and also some older guys getting back into it, next to the core group of riders that is always there,” said Jamie Smith, Enuff Team Manager. At Landyachtz Longboards, Dave Price, International Accounts Manager said: “Covid-19 has created a very unique situation. We are lucky to be in an industry that is an individual based activity that can be practiced close to home. If I worked in the soccer or hockey industry, I would be stating something very different. In my ten years in the longboard industry, I have never seen this level of growth happen over such a short period of time.”

Pop goes the market

According to reports from retailers and distributors, everyone has sold through an entire year’s worth of inventory in the two months following March. Take some time to let this information sink in. Two months, full year! A blessing and a curse, as it turns out, because practically nobody in the industry expected such a surge in demand. “Carver sales have tripled with the impact of Covid-19 across all sales channels. This also has put a huge strain on the supply chain. With components coming from different parts of the world and those countries experiencing their own set of problems individually, supply is definitely very challenging right now. We have a decent flow of goods from our suppliers, but we are still behind on orders,” said Eben at Carver. Kris at OBfive Skateboards said: “The next challenge for us, and most other brands, is replenishing stock for the future. All reports from our factories are that they are at full capacity and lead times and MOQ’s are high.”

Six Strategies for Securing Inventory in Skateboarding’s Boom Cycle

In order to chart a way forward, we sat down with an industry insider who’s seen the rise of globalized supply chains in skateboarding from day one: Steve Douglas at Rolling Thunder, global licensees and distributors of Zoo York, Ocean Pacific, Speed demons, Vol 1, Blueprint, Verb, KFD,

RAD, Pivot trucks, Killer Speed Co and The Heart Supply. “Skateboarding has never been in the Olympics, so everyone knew there was going to a ripple effect. But nobody saw this coming! We don’t know yet if it’s going to be a one-foot wave or a 60-foot wave, but I want to be on that wave! I’m not going to just sit there during what could be the biggest expansion of skateboarding in history!” said Douglas.

In following, former pro skateboarders and accomplished company strategists shares these helpful retailer strategies:

1. Throw out the old rule book
The new reality after COVID-19 is anything but normal, so stores need to adjust their pre-booking and order frequency, like, right now. “Some companies still work with their old calendar, thinking delivery windows and lead times are still the same. Factories are telling them, ‘No way!’” said Steve Douglas, adding: “Everything is delayed by three to four months right now. Shops will not have inventory for Christmas season if they’re not on top of it now. People need to change the way they do business.”

2. Don’t put your eggs in one basket
Shops can no longer depend on a single distributor or hardgoods manufacturer to secure supply. Instead, branch out and work with a variety of suppliers to secure inventory in case one of them runs out. “Everyone is hoarding as much product as possible right now, so don’t put all your eggs in one basket,” said Douglas. “It’s a great time for woodshops right now, including American and Mexican companies. Usually, it’s too expensive to ship internationally from North America because of airfreight, but European distributors are buying whatever they can.”

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3. Embrace complete boards
Asked about the key product of the moment, Benoit Brecq at HOFF Distribution said: “Completes are the strongest category right now. COVID19 seems to have a great impact in terms of demand and sales.” And finally, core skateshops are waking up to the category: “Completes are where it all starts for the majority of people, yet a lot of people in the industry used to not embrace it,” said Steve Douglas, who specializes in quality completes from licensed brands such as Alien Workshop and Zoo York, adding: “Someone could be the next Tom Penny, but might as well get a crap complete board and just quit. Stores like Slam City Skates now carry completes, and people new to skateboarding now start on good boards. It also makes walking into a core shop far less overwhelming.”

4. Talk pre-orders with suppliers
Despite the current drought in supply, Jörg Ludewig, Managing Partner at Urban Supplies distribution noticed: “In hardgoods, which is 95% of our business, we have only had a few SS21 pre-books so far.” According to Steve Douglas, many shops may be risk averse in the current uncertain climate. But he strongly encourages stores: “Ask if your suppliers will take the risk and put in a pre-book order. It helps shops secure product and the suppliers also benefit, because they receive better information about the kind of products that are selling well. Which helps decision-making all the way into manufacturing.”

5. Constantly check in
Now more than ever, stores need to keep in touch with suppliers amid disrupted global supply chains. “What you think you are getting delivered may differ from what’s actually coming in,” said Steve Douglas. “You need to constantly check in with your distributor or supplier to make sure you are actually getting what you ordered. Some product that was supposed to arrive in October 2020 has already been pushed back by manufacturers to March 2021.”

6. Keep an eye on accessories
The drought is not just affecting decks, trucks, and wheels. “Expect shortages of things that aren’t on your radar, like griptape, hardware, bushings and so on. Manufacturers are scrambling because there is so much demand,” said Steve Douglas. Now is a good time to stock up on these accessories, while always keeping in mind that in this new normal, suppliers will be quick to point out the difference between the products you want and the products you can get. People are ready to buy blue wheels instead of white wheels, and niche brands that were formerly scoffed at now sell thousands of units, on the mere strength of having inventory.

Outlook: Long-term shortage ahead
Obviously, securing inventory for the holiday season should be first in mind for core retailers at the moment. But what happens afterwards? How long will this drought continue? “I don’t see the situation changing until springtime 2021 or summer. There are going to be lots of unhappy people this Christmas,” said Steve Douglas at Rolling Thunder, adding: “Christmas product may take until spring to turn up. And spring stuff is already delayed. Factories now have up to six months lead time to make completes.”

At Landyachtz, David Price also said: “I’ve never seen a global shortage of skateboard completes and trucks, but that is the state the industry is currently in. Many people have been asking me how long this level of growth will last. Sales always drive more sales and with so much demand left on the table, I could see this lasting a year or two.” At the same time, the rate of new releases and product innovation is bound to take a hit: “It has been challenging to drive new product development and tech with the supply chain as affected as it is now. We are just trying to keep up with demand,” said Eben at Carver Skateboards. Then again, after years of oversupply, all those empty shelves in retail and warehouses have a plus side, said Sly Kookmaster at Sector 9: “We’re keeping on track for 2021, but back to decent production rhythms. No more overstocks and that sounds good.