How outdoor industry growth created new opportunities for specialty retail

RETURN TO THE OUTDOORS

Increased outdoor participation drove demand across the industry

The COVID-19 pandemic created sharp peaks and valleys across many industries. For the outdoor industry, it accelerated consumer interest in active, outdoor lifestyles and drove growth across several categories.

National Park Service data reflected this shift. From 2019 to 2021, attendance increased at most national parks, including 74% growth at Acadia National Park and 30% growth at Canyonlands National Park.

Outdoor retailers also recorded significant sales gains. Grassroots Outdoor Alliance members reported a 29% increase in first-quarter sales from 2020 to 2021 and a 34% increase compared with 2019. Active apparel sales grew 27% from 2019 to 2021.

Social distancing initially encouraged more people to try hiking, cycling, camping, golf, and other outdoor activities. Many consumers continued those activities as they discovered new ways to exercise, socialize, and spend time outside.

A Harris Poll found that 70% of Americans wanted to spend more time outdoors. An NPD and CivicScience survey also found growing interest in hiking, home workouts, cycling, and golf.

This increased participation created demand for the apparel, footwear, equipment, and accessories needed for each activity. Retailers needed more products, while brands gained opportunities to reach new customers and expand their wholesale businesses.

Brands using Elastic Suite experienced similar growth. Aggregated wholesale data across outdoor categories and company sizes showed a 26% increase in gross merchandise value and a 27% increase in retail buyers from 2019 to 2021.

WHY NOW?

Supply chain disruptions created new challenges for outdoor brands and retailers

The pandemic brought new demand to the outdoor industry, but it also created worker shortages, illness, trade show disruptions, and supply chain instability.

These challenges made it harder for brands to maintain inventory, fulfill orders, and control costs. Retailers often struggled to find the products their customers wanted. SIA Consumer Insights found that 55% of consumers encountered out-of-stock items while shopping for snow sports gear in 2021.

Product shortages also changed buying behavior. Retailers and consumers became more willing to consider smaller, independent manufacturers when established brands could not meet demand. Small and midsized brands accounted for one-third of consumer packaged goods sales growth in 2020.

This shift created an opening for emerging outdoor brands. Companies that maintained inventory, communicated clearly, and adapted their product strategies could reach new retail partners and consumers.

CLIENT SPOTLIGHT

Vuori grew through product innovation, infrastructure, and wholesale partnerships

Vuori shows how a specialty brand can grow by combining a strong product line with strategic investments.

The company launched in 2015 with performance apparel inspired by the active West Coast lifestyle. It built a loyal customer base and established itself as a leading activewear brand.

Vuori tripled its sales during the pandemic. The company supported that growth by investing in infrastructure, sustainability, product development, and workforce planning.

Vuori also expanded through a mix of wholesale partnerships, direct-to-consumer sales, and its own retail stores. Its ability to adapt products and distribution strategies helped the company meet changing demand across channels.

Partners such as Elastic Suite supported Vuori’s wholesale business by helping the brand connect with retailers and manage its growing sales network.

SUPPORTING LOCAL

Specialty retailers benefited as consumers shopped locally

Specialty retailers also gained momentum as more consumers chose to support local businesses.

While many big-box and department stores closed locations, Main Street and specialty stores recorded sales growth. Industry estimates projected that smaller retailers would grow nearly 2% annually and reach $44.5 billion in sales in 2022. Over the same period, big-box and department store sales declined by an average of 5.89% annually.

Changing consumer priorities contributed to this shift. Many shoppers wanted to support businesses in their communities, discover independent brands, and reduce the environmental impact of their purchases.

Specialty retailers also offered something larger stores often could not: local expertise, personalized service, and product assortments selected for their communities’ needs.

THE FUTURE OF OUTDOOR WHOLESALE

New consumers and B2B ecommerce create more opportunities for growth

As more consumers enter the outdoor market, brands have an opportunity to develop products and assortments for beginners.

During the height of the pandemic camping boom, National Geographic reported that 20% of campers were participating for the first time. These consumers needed accessible products, clear information, and guidance from knowledgeable retailers.

Brands can support this market by building assortments around entry-level consumers’ needs. Products that reduce complexity, offer clear value, and make outdoor activities more approachable can help brands and retailers reach this growing audience.

Digital commerce creates another opportunity. Trade show disruptions accelerated the outdoor industry’s shift toward online selling and highlighted the need for more flexible wholesale processes.

B2B Ecommerce platforms allow brands to present products, share current information, and accept wholesale orders year-round. Retailers can discover products, review assortments, check inventory, and place orders without waiting for a trade show or sales appointment.

Digital tools also give sales teams more ways to support specialty retailers. Brands can build targeted assortments, respond to local demand, and make it easier for buyers to find and order the right products.

By combining strong retailer relationships with digital wholesale capabilities, outdoor brands can serve new consumers, respond to changing demand, and build more resilient businesses.