Popular perception suggests golf retail, particularly the large scale, brick-and-mortar variety, is under siege. So, I was intrigued by PGA Tour Superstore’s recent announcement of 15 percent same-store sales growth year-over-year and even more intrigued by the company’s plans for expansion (adding 19 stores over the next three years).
The company also saw a 42 percent growth in e-commerce sales and performed over 100,000 custom club fittings last year across its 31 retail stores. PGA Tour Superstore opened four stores in 2017 (Glendale, AZ, Hilton Head, SC, Jacksonville, FL and Las Vegas), with plans to open at least five in 2018.
I spoke with PGA Tour Superstore President and CEO, Dick Sullivan, about the company’s unique approach to retail and the state of the golf retail marketplace in general. Sullivan was an executive at Home Depot and the Atlanta Falcons prior to his appointment as head of PGA Tour Superstore in 2009.
Ben Alberstadt: Tell me a little bit about the PGA Tour Superstore model and what’s working for you.
Dick Sullivan: We take a lot of our same values that we had at Home Depot in terms of how we take care of our customer. In our case, we’re much more than…buying products off the rack. Anybody can do that. In our case, it’s so much more important that we bring the level of assortments, the level of service, and a level of experience that consumers really want. A lot of other retailers have tried to bring, say, a high level of service, but they just can bring the…assortments we bring because of the size of our stores…They’re 40-50,000 square feet.
We make multi-million dollar investments in technology every year to make sure that what our customers see inside of stores is really what the pros will see and what all the OEMs are using in terms of fitting.
In addition to the technology that we have, we hire PGA Pros in our stores. Just like Home Depot, where if you don’t have the right people on the floor…that’s a problem. We go out and we seek the best in class in golf, whether it’s students coming out of academies, whether it’s coming out of green grass shops…it’s really important to our customers that we have that level of expertise.
The broad assortment that we carry, not only the hard goods side but on the apparel side, are also important to our customers as well. And we don’t just sell products. We gave over 50,000 lessons last year. We fit over 100,000 customers. We put on over one million grips….We have large-scale putting greens. We have hole-in-one contests. We do closest to the pin. We do other contests.
BA: I don’t want to ask you for the recipe for the secret sauce, but can you talk a little bit more about applying the Home Depot model.
DS: Well, there’s no commission at all. If a customer comes in and doesn’t want to buy anything that day, that’s fine. We’ll have people come in…and say, “Well, I wanted to buy a new set of clubs, but an associate told me I should take a lesson first.”
Another thing is, our company has an inverted organization chart. Those who are closest to the customer are the ones who are in power to make decisions. Those at the bottom–the chairman, the CEO–we help facilitate and deal with challenges and obstacles…Every single day [information is coming back from the store]…and the customer is at the top. The customer is king…the associate is right below them in terms of the org chart.
Our associates solve problems on the floor of the store. They don’t have to go through some bureaucratic system or political power to make decisions. So, it’s a great experience for our customers.
BA: That sounds like it would yield both fluidity and continual optimization of the in-store experience for the customer…
DS: Just like in the pro shop. You want that golfer to feel like they are king. Our associates get to do the things with our customers that competitors can’t…You think about the simulators inside our stores. That experience alone…the hole-in-one contests…things like that, those are the fun things our associates get to do. Lessons with kids on Saturday morning. All that stuff is really fun.
BA: It seems like you’re putting a premium on relationships and the service element, where others might sometimes feel that it’s not worth an investment, so it’s interesting to see you defying that line of thinking.
DS: Well at Home Depot, and Arthur [Blank] taught me this about 26 years ago: Our associates are not an expense, our associates are an investment. And another thing I’ll never forget him saying: “We’re not in the transaction business, we’re in the relationship business.”
We have nine-hole leagues. We tested them in Minnesota, and our customers really gravitated to it..It’s really fun for families to come in and play…There’s some wonderful new technology that’s out there that’s allowing us to do some unique things.
In the cold-weather months…we have not only one dozen-plus simulators in every one of our stores, but we have these practice bays–almost like an indoor driving range…that’s different. That’s an experience. Someone used the term “retailtainment.” I’d never heard that term, but I thought it was a good term.
BA: Another interesting element here is you’re doing very well online. Can you speak to that?
DS: Well, we have a 50-year license with the PGA Tour. When we did the deal with Tim Finchem…there was no license of that length. We believe strongly in the brand of the PGA Tour. They’re at the top of the pyramid. When you think of golfers, you think of the PGA Tour. The PGA Tour brand reeks of quality. If I said, “Volvo,” and I said, “give me the attributes of Volvo,” by the second, third, or fourth, you’d say “safety.” So when I say “PGA Tour,” it’s usually “high performance,” “quality.” All those things help us in the virtual space…versus “Bob’s Discount Golf” or something like that.
Second, the assortments that we have are just phenomenal.
Black Friday. I remember an article that said, “this is the death of Black Friday.” This was supposed to be the first time that consumers shopped online…at the level of 59 percent. It made me a little nervous. Across the company we had a 28 percent increase that Black Friday, and we had a 98 percent increase online. Then we were up 62 percent on Cyber Monday.
A few years ago, we didn’t have quite the national footprint and the name recognition…I think that footprint has helped us grow our e-commerce business, along with the reputation the PGA Tour brings.
BA: Given the success that you’re seeing, do you think there’d been some fundamental misunderstanding of the golf consumer, or was it just an element of common sense that was lacking?
DS: At the end of the day, the customer votes. We all know that. And I think some organizations maybe have an arrogance in thinking they have all the answers, and they push those decisions down. As I said, we have the reverse: Our associates listen to our customers. Our customers tell our associates what we can do better, and we make those changes.
One of core values is listening and responding. Putting our people first. Innovating. There’s a number of values that we’ve taken from that model of Home Depot and brought it over. The assortments that you see, the size of our stores, that didn’t exist 15 years ago…and I think the level of service, the investment in people, was never happening. And then the investment we make in technology…it’s not just magical marketing that convinces people they need to buy. They can actually see it [by hitting the club on an in-store simulator].”
BA: I think there’s such a level of skepticism at this point that marketing claims are so in-one-ear-and-out-the-other that the best thing OEMs can do, if they really believe in their technology, is to say “go try it out on a launch monitor.” We’ve reached critical mass in terms of marketing speak.
DS: Yeah. Getting fit is not just the little box on the floor and if you swing 88 mph you’re a regular flex…it’s come a long way over the years, and I think we recognize that. That makes it fun. And it makes it more challenging, because the product actually has to perform. It’s not marketing claims; people can actually see the results. Spin rate. Launch angle. All that. And if you’ve got the right fitters, they can quickly dial you in. And we fit for golf balls. It’s amazing to see people come in and get fit for golf balls
BA: That should be the direction of retail. That’s the stuff that really makes the difference, along with lessons. That’s what’s going to enhance how well a player plays and how much s/he enjoys the game.
DS: And if it doesn’t work on the course, they can bring it back. We want people to be happy. It’s fun to hear these stories on course about how a player changed his ball or changed equipment. And they’re all out there fighting for market share. There’s some unbelievable manufacturers. We just came off of a weeklong training session with hundreds of our associates at Streamsong…all the major manufacturers are represented. Every one of our associates goes through extensive training on products…our associates know as much as the reps know.
BA: To circle back, initially, I’m impressed by the scale of the operation, the growth year-over-year, but so much of what you’re doing seems almost like a small business in terms of attention, in terms of investment in employees, it terms of relationships with customers and not being as transactional in orientation. I think that’s a really interesting element of the story.
DS: Hopefully we’re never so big that we change the culture of our company. The investment we making in training…we believe in training probably more than any other retailer out there. It’s so important our associates come well trained and are able to work with customers, because this is not easy stuff. It can be overwhelming.
BA: That’s the point the consumer is at, I think. Technology has become so sophisticated that you either need to do a ton of research or you need help. You need background knowledge in addition to knowing about specific offerings, or, again, you need help.
DS: Right. And we try to make it all simple. We don’t just focus on the avid golfer, we cater to juniors, women, seniors, everyone. That’s part of our whole model.
But we’re growing. We’re going to double the size of our company over the next four years…basically open a store every other month. We see a lot of opportunity. There’s a lot of real estate out there. There’s plenty of real estate in some markets we haven’t been in, and customers are calling and writing asking when we’ll make it to those markets, so you’ll see us growing in some new places over the next three or four years.
BA: Great. Any final remarks on the state of the industry?
DS: Most people call me up and say, “What’s wrong with golf?” I say, “What’s wrong with golf? I don’t think there’s anything wrong with golf.” Golf Channel just announced there were more viewers than January than ever before. Golf rounds have stabilized. We’re bringing more kids into the game than ever.
I don’t want to be falsely optimistic, and certainly there are some things that still need to be fixed, but there’s certainly more positives in golf now than not and the buzz at the PGA Show was great. You know, there were lots of clouds the last few years…but I felt a real positive buzz at the show, more so than I have in many years. I think that bodes well for the game, whether it’s outdoors, or whether they’re coming inside and hitting on simulators, just as long as they’re having fun with a golf club in their hand.
Danny Willett spotted with new Odyssey prototype putter, putter shaft
You may have seen Danny Willett’s name near the top of the leaderboard at the DP World Tour Championship in Dubai. At 10 under, the Englishman sits one stroke behind fellow countryman Matt Wallace.
You may not have seen, however, that the 2016 Masters champ has a new Odyssey prototype putter in the bag.
All the company would say
“Willett first put in his new gamer last week at the Nedbank Challenge. Willett’s prototype putter also features a new prototype Odyssey shaft to help improve the consistency of the putting stroke.”
Willet has historically favored his blade-style Odyssey O-Works #1 W. More recently, at the Turkish Airlines Open, we spotted him with an Odyssey Versa Jailbird Black. However, the prototype in question is clearly a heel-shafted mallet with a different insert than the 1 W or the Jailbird. The insert looks to be the White Hot Microhinge. Obviously, the two-tone, potentially multi-material, shaft, and the technology therein, is notable as well. Also apparently two-tone, the putter head, which looks similar in shape to a Tank Cruiser and similarly has a pair of sole weights.
Do we need the TG2 to break down the few photos we have like the Zapruder film? We’ll continue digging, in the meantime, let us know what you think, GolfWRX Members!
McIlroy snaps back at McGinley criticism: “Next year, I’m looking out for me”
Earlier this week, Rory McIlroy suggested that he would leave the European Tour in 2019 which produced criticism from Irish golfer and analyst Paul McGinley, who called the decision “extraordinary” and “hard to understand.”
McIlroy, who is currently in action at the DP World Tour Championship in Dubai, indicated before the event that he would only play in two “pure” European Tour events next year. When told about McGinley’s negative reaction to the news on Thursday, McIlroy hit back in unrepentant style. The 29-year-old defiantly expressed how 2019 will be the year he puts himself first in a bid to end a major drought dating back to 2014, while also suggesting that just like himself, McGinley has his own interests in mind.
“McGinley is on the European Tour board. He’s involved and he has to protect what he has, and I get it. Everyone has to do what’s best for them and for me next year I’m trying to do what’s best for me to help get back to the best player in the world and try to win majors again.”
Should McIlroy decide not to renew his European Tour membership for 2019, he would be unable to captain his continent in future Ryder Cup’s, due to a European Tour rule introduced last year. When asked about his thoughts on that particular issue, McIlroy appeared to show no concern, bluntly replying: “It’s 20 years away”.
McIlroy confirmed that he had met with European Tour chief executive Keith Pelley in South Africa last week to brief him on his plans for 2019. But while the move to quit the European Tour looks increasingly likely, McIlroy was not ready to drop any bombshells in Dubai, and even poked fun at the controversy, stating
“Geez, I’d cause all the stirs in the world if I go back to winning majors. Next year I am looking out for me. At the same time, I don’t have to make a decision on it. I didn’t say it was a definite. It is up in the air. We’ll see how it goes.”
McIlroy has until next May to decide whether or not to renew his European Tour membership for 2019.
GolfWRX Morning 9: McIlroy: Looking out for No. 1 | Ogilvy: Aus. Open is “second class” | Hole-in-one: yardage unknown
By Ben Alberstadt (firstname.lastname@example.org)
November 16, 2018
Good Friday morning, golf fans.
1. Kuch Down Under + player doesn’t know hole distance, makes hole-in-one anyway, wins $17K watch
Matt Kuchar went, “from Hola to Aloha,” at the Mayakoba Classic, to continuing his strong form some 9,000 miles away at the Australian Open.
2. …of course, also on the subject of the Australian Open…
Geoff Ogilvy, one of the most eloquent and outspoken major winners from Australia had some strong words about the state of his national open.
3. Meanwhile, in Dubai…
The official game story from EuropeanTour.com…”Jordan Smith and Adrian Otaegui shared the lead after day one of the DP World Tour Championship, Dubai as Francesco Molinari tightened his grip on the European Tour’s season-long crown.”
4. And at Sea Island…
Unofficially, a Titleist man now, Chucky Three Sticks got off to a stellar start at Sea Island.
PGATour.com’s Sean Martin…”Charles Howell III knew he needed to take advantage of Thursday’s tee time on Sea Island’s Plantation Course.”
5. Closing stretch of the Race
Ron Sirak…”Nothing like the prospect of winning $1 million to mess up your mind a wee bit. In the final Race to the CME Globe before the CME Group Tour Championship changes its format, the five players who can win the bonus by winning here find themselves looking up at Amy Olson with Nasa Hataoka having the best view.”
6. McIlroy: “I’m doing Me-Ilroy”
Well, that’s not exactly what the Ulsterman said, but essentially…
7. Rounding out the lineup
The steady drip of details/stuff they’ve just figured out continues with the announcement of the, well, announcers.
8. Inside Kuch’s switcharoo
I talked with a few of Bridgestone’s ball wonks about staffer Matt Kuchar’s ball switch ahead of his Mayakoba win.
9. Debating the left-foot flare
For something a little different, here’s a piece from our Rod Lidenberg that we published late yesterday. Lidenberg debates the merits of the flared left foot at address (ala Ben Hogan’s suggestions). Needless to say, it’s awakening a strong response from the GolfWRX readership.
The drivers used by the top-10 longest hitters on the PGA Tour in 2017-2018
Forum Thread of the Day: “New Callaway Driver – Epic Flash”
Cameron Champ’s Winning WITB: 2018 Sanderson Farms Championship
Golf 101: How to properly grip the golf club
Phil Mickelson: Playing courses like Le Golf National “is a waste of my time”
The drivers used by the top-10 most accurate players on the PGA Tour
SPOTTED: TaylorMade P-760 Forged irons (via Jason Day’s Instagram Live)
Details on Jordan Spieth’s switch to the new Titleist TS2 driver
Photos of Nike “VPR Strike” drivers that apparently would have come out in 2017 (updated with info and more photos)
The putters used by the top 10 in strokes gained: putting
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