ShareThisHundreds were lined up outside the store entrance in Palm Desert, Calif. for the grand opening of Golfsmith Xtreme, the first U.S. location under a new megastore banner of longtime Texas retailer Golfsmith International Holdings.
Inside the 37,000-square-foot store, shoppers filled checkout lines as they took advantage of opening-day discounts, while others were testing out the goods on the store's driving range and putting greens, as well as its full-sized tennis court.
"It's got bigger bells and whistles than the other places, the people are helpful and the prices are pretty good," said desert seasonal visitor and golf buff Dave Weiner, 72, of Rock Island, Ill., as he tried out an electric golf cart.
In an economy that's seeing closings and bankruptcy filings by national chain operators amid plunging sales, Golfsmith and a host of other retailers are moving beyond big boxes and low prices and focusing more on the experience of being in the store.
Spurred by the continued popularity of Apple's retail stores and players like Bass Pro Shops, others are focusing on aficionados and the people in their lives who might buy gifts for them. They're amping up the in-store product demonstrations, adding play areas and instructional sessions, and offering more repair and other services geared to encouraging return visits.
"It's so important, especially in this market, to give people something they haven't seen before," said Mike Tesler, a founding partner of Massachusetts-based consulting firm Retail Concepts.
Tesler cited Bass Pro Shops, which specializes in hunting, fishing and other outdoor sporting gear, as a prime example of an experiential retailer that is maintaining decent foot traffic in this economy.
While Missouri-based Bass Pro Shops does not break out individual location sales, store representatives said Bass Pro has maintained a loyal customer base despite the economy, primarily by appealing to families.
"The novice can come to our associates and learn hands-on how to enjoy the outdoors more," said Kevin Phan, promotions manager for the store at Victoria Gardens. "We have fishing demonstrations routinely, an archery range to test bows, a pistol range to test hand guns, a boat showroom for people to board our selection of pontoons, bass and offshore boats, and several other hands-on attractions."
Tesler said other retailers are staying in the game by offering family-oriented, child-centric attractions. Two of the leading examples are Build-A-Bear Workshop, which lets kids assemble stuffed animals that their parents purchase; and doll seller American Girl, which offers children's tea parties and theater shows featuring the store's toy characters.
Bass Pro Shops is an example of an experiential retailer that has made its stores family- and shopper-friendly.
"Apple is the gold standard of retailing," Tesler added. "They let you play with the technology."
Almost every kind of retailer is seeing lower profits amid a massive consumer spending pullback, and experts say it's tough to gauge long-term how the experience approach will pan out in a prolonged recession. But some say it's important to forge shopper loyalty now, in order to reap the windfall when good times return.
Another popular offering is the store's demo program that lets customers try out the gear outside the store -- golf clubs for 48 hours and tennis racquets for 24 hours, subject to certain fees if those time frames are exceeded.
Golfsmith saw its national revenue in 2008 drop 2.3 percent from the prior year. But at the Golfsmith Xtreme store, general manager Mike Martin said the company looks beyond reaching customers in the immediate economy.
The store has a club-fitting studio and offers classes taught by PGA-certified pros, and Martin said letting customers try out gear on the store's golf range and tennis court can help build longer relationships.
Golfsmith representatives said customers want to test out equipment to meet many situations. Its store in Raleigh, N.C., even has its own sand trap.
"We think it's important regardless of the economy," said Matt Corey, Golfsmith's marketing vice president. "It's like being able to listen to music at Best Buy. You've got to be able to hit a tennis ball or a golf ball before you decide to buy that racquet or club."
(E-mail Lou Hirsh at lhirsh(at)PE.com. For more stories visit scrippsnews.com)
Must credit The Press-Enterprise of Riverside, Calif.
