In the wake of the COVID-19 pandemic, Sarah McDonald suffered sleepless nights while running her store Out There Outfitters in Wayne, PA.
“We were over-inventoried,” says McDonald, who has co-owned Out There Outfitters for six years. “I was doing all the buying myself, and it was too big of a job. Some things were falling through the cracks, so I needed more help.” McDonald had hoped to hire another buyer, but she didn’t have time to vet someone and needed immediate help.
In January 2023, Out There Outfitters began working with Outside Looks, a 16-year-old company that helps outdoor specialty retailers with every aspect of inventory management, from budgeting to open-t0-buy planning to sales forecasting.
“We work closely with retailers to propose a customized solution for what their needs are,” says Carrie Watson, owner of Outside Looks.
After meeting with Out There Outfitters, Outside Looks examined the store’s operations and generated reports demonstrating how the shop could operate more effectively. While McDonald was an organized, experienced buyer, she still had to absorb loads of information when the process started. “I was drinking through a firehose,” she says. “We had a lot to clean up, but we were super committed to it, and it changed the game for us in such a great way.”
After working with Outside Looks, the store is more intentional in its buying and carries fewer SKUs with each company. As a result, products turn quickly, and the store has less money tied up in inventory. “I’m doing more with less,” says McDonald. “Take my polo shirt category, for example. My business is up 7 percent, but my inventory is down 17 percent.”
While Out There Outfitters is thriving, so is Outside Looks. Based in Austin, TX, the company has consistently added retail clients since it launched in 2016. While dealers have largely overcome pandemic-related problems, they still need help. In recent years, the outdoor industry has changed significantly, and dealers face new challenges when it comes to managing inventory.
Perhaps the greatest change in outdoor retail has been the shift from hardgoods to outdoor lifestyle products. Stores such as Out There Outfitters carry few tents and sleeping bags and sell more apparel and footwear for outdoor recreation and travel. In these types of shops, you’ll not only find standard brands like Patagonia and The North Face, but also more fashionable labels like Faherty and Johnnie-O.
These lifestyle-oriented stores draw shoppers who continually seek fresh brands and new looks on the shop floor.
“Shoppers are scrolling on their phones, and there’s constant discovery and curiosity about what’s new, what’s different,” says Watson. “Shoppers are expecting that out of their brick-and-mortar stores as well.”
To satisfy these customers, stores must continually experiment and bring in products from new companies. However, Watson says they risk collecting too many brands.
“When you gather too many brands in your store, it can be debilitating,” says Watson. “You have so many more line showings at trade shows, and you’re responsible for so many more invoices. Your time with operations starts increasing, and it’s a sneaky time suck.”
When Watson takes on a new client, she encourages the store to run a sales report comparing its current number of brands to the number from five years ago. “It’s an eye-opening experience,” says Watson, noting that all too often, retailers realize they’ve accumulated an overwhelming number of brands. Outside Looks assists dealers in scrutinizing sales for each brand and moving on from those that aren’t delivering the maximum impact.
“I have people walking away from that exercise saying, ‘Wow, I just saved 40 hours of line showings by taking the best brands that contribute the most to our bottom line,’ ” says Watson.
As retailers add new manufacturers to their mix, there’s also a tendency to focus too much on sales from particular brands rather than the performance of product categories in the store. “Outside Looks changed how I look at my numbers,” says McDonald. “I still look at brands and how they’re doing, but it’s much more category-based. It gives me a better overall picture of what’s going on in each category. I’m focusing more on what my customers tell me they want rather than just how a brand is generally doing.”
Personalized Service
When McDonald first met with Outside Looks, the discussion centered on the unique characteristics of Out There Outfitters and how it does business.
“We try to understand where everybody’s coming from and their practices,” says Watson. Every store has its own set of difficulties, depending on the product mix, customer base, and location. “Understanding the retailer is the most important thing we can do to have a rewarding relationship.”
Based on the initial meetings, Outside Looks puts together a personalized plan for the store’s success.
McDonald says she appreciates that Outside Looks doesn’t simply offer a “cookie-cutter” program. “They’re very involved with your store, its personalities and quirks, and how you do things,” she says.
Once Outside Looks understands the business well, it meets with store personnel a couple of times every month. “No topic is off the table,” says Watson. “It can go anywhere from your break-even point to your strategy for brands for next year.”
Outside Looks creates a “buy plan” for the store, including budgets by product category and strategies for pre-season buying. The shop and Outside Looks develop buying plans well ahead of trade shows so attending owners and buyers are well prepared. Working together, they also create sales forecasts about 12 months ahead of schedule.
Throughout the year, Outside Looks stays in frequent contact with clients, helping them secure ASAP orders, clear out slow-moving products, or solve other issues that pop up.
“They’re willing to help you figure anything out,” says McDonald.
At any given time, Outside Looks works with about 40 stores, including several long-term clients. According to Watson, her company’s business is growing steadily. “People are always hungry for knowledge,” she says. “They wonder, ‘What do I need to know to make my operation improve?’”
As for McDonald, she plans to be one of Watson’s long-term clients. “It’s one of the best things I could have done,” she says, adding that she feels peace of mind knowing she can lean on Outside Looks for help. “It’s just good having another person to look at the numbers,” says McDonald, adding, “Now I can sleep at night.”
Marcus Woolf has been a reporter, writer, and editor for outdoor business and consumer media for nearly 30 years. He served as the editor of Outdoor Retailer Magazine and worked as a contributing editor for the Outdoor Retailer Daily Exposure newspaper, SNEWS, and Gear Trends Magazine. His writing has also appeared in consumer publications such as Outside and Backpacker. Marcus is an avid hiker and the author of the guidebooks Afoot & Afield: Atlanta and Hiking Huntsville, which covers trails in his hometown of Huntsville, Alabama. When he isn’t mapping trails or traveling to visit outdoor retailers, Marcus enjoys backpacking, canoeing, and kayaking with his wife, Wendy.
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