The Recession + The Outdoors

There was an interesting article posted today on Paddling.net about how the recession is affecting the outdoor industry – in a POSITIVE way! In a nutshell, people are trading their normal, more expensive activities for low-cost alternatives, like camping, hiking, fishing, etc. Makes sense to me and I’m very happy that the recession is encouraging people to get outdoors!

The article is posted below for your convenience or you can read it at paddling.net


Outdoor Recreation in a Recession

Outdoor recreation and an economic recession go together like Baileys Irish Cream and your morning camp coffee. It's a historic fact, when a recession hits, outdoor pursuits increase dramatically. And lately I've seen a lot in the media proving that, in a time of economic crisis and financial uncertainty, the camping industry stands poised for growth. In Ontario alone, yurts in provincial parks are booked solid; some parks have now opened up Winter RV campsites, and the number one outdoor sports on the rise right now is snowshoe jogging.

"When times are tough, we get busy." says Jeremy Dickson owner of Canoe Canada Outfitters in Atikokan, Ontario. "The wilderness experiences we provide our customers are the perfect reprieve to a slumping economy." And Jeremy is not alone, according to a report prepared by the Outdoor Industry Association, the relatively inexpensive and convenient outdoor vacation has remained appealing to outdoor shoppers throughout the year. The trend points to outdoor vacations being the industry's bright spot as consumers look to the outdoors as an escape from the pressures of daily life.

For more proof, here's a report I was sent by Gord Baker of Algonquin Outfitters in Ontario, Canada:

"While early predictors show evidence of a decline in specific outdoor channels starting in November 2008, outdoor industry sales have remained fairly robust since the nation officially entered a recession in December 2007; posting a healthy 9.6% increase overall and outpacing traditional retail markets."

According to the report, the relatively inexpensive and convenient outdoor vacation has remained appealing to core outdoor shoppers throughout the year. Internet sales showed a robust 21.6% growth since December 2007 and core chain and specialty stores remained healthy, growing at 10.0% and 4.7% respectively. All core outdoor stores were up 6% in total unit sales and 9% in dollar sales year to date. In YTD dollars, all equipment increased 10%, equipment accessories 11%, apparel 9% and footwear 4%.

According to trendspotter and OIA Rendezvous keynote speaker Marian Salzman, the only businesses in which she would consider investing right now are soup and camping. Her reasoning is that Americans will be looking to escape the long-term economic turmoil and constant barrage of the media by returning to low-cost, simple activities that involve the entire family. If this prediction holds true, as it has in the past, businesses that support cycling, camping, hiking, fishing and paddling activities may be very well positioned for several years.