News just in, Jim Thompson, CEO of Golfsmith was fired today, their stock is down 12%. Be interesting to see if they stay within the family or go on the outside.

I heard he resigned. Where did you hear fired?

The CEO of my company, he actually is a "friend" of his.

What company?

I have met Mr. Thompson before and he was a very nice man. He had a good vision for the company. I think that stocks falling and such can be attributed to the economy and internet sales (eBay). I hope his replacement does a good job, otherwise I will be looking for a new job till I get out of college LOL.

I will be honest with you, I dont think it has anything to do with the economy or ebay.
Our store's internet has had a great year, as well as inside the store. I firmly believe its the staff thats hired to work in that store. They realy dont have a clue on golf or product knowledge. Also, a lot of their stores do not have a lot of product to sell. I know they are mainly a homebrand store, but not having proper knowledge of the popular products is not good.

I know some people may disagree with me, however I have seen it first hand in some stores and over the phone. When you call your sales people "caddies," I feel as a consumer that person doesnt know what hes talking about.

Also what I have found is people dont like putting their credit cards online, they want to physically talk to someone, and when the other end is a bit clueless on what your talking about, it will not make someone buy from that company.

Thats just my view on this situation.

Its almost guaranteed at my local store if someone there is a good golfer or has a lot of knowledge on product they are gone within 3 months.

The people that remain think they know everything but are not that knowledgeable. What do you expect for minimum wage?

GS corporate/management are a bunch of tards.

Where did you hear fired states here he resigned:

http://money.cnn.com/news/newsfeeds/articl...2f83eb09341.htm

I live near the Austin (corporate) and even this store is taking a big hit on its sales. I think alot of it has to do with their prices (I understand that there are some things that have to be priced the way they are, but even the others are over priced). Especially their used equipment. I usually go in there once or twice a month just to browse for overlooked tour clubs and they are pricing junk used equipment about $50 less then the price for a new one (skymarks, serious rub marks on shafts, etc..) I very rarely see people walking out of the store with equipment anymore.

The Austin store is a terrible store, I have been in there before, they are out of a lot of stuff it seemed like. It seems like our store does fairly well and the majority of our caddies know most of their stuff. As far as the prices go, used equipment is the only thing thats overpriced, they have a price match policy if you find something at a competitor for cheaper.

i'll buy that one.

simple and funny, but it rings true!

i can't stand going into golfsmith for that exact reason. i almost feel alienated because of some of the inept people they've hired.

Unfortunately you are right on the money.

Of course there are exceptions (Hi TM - LOL), but I RARELY talk to anyone with a clue at these shops.

Tim

Asked to resign = Fired

This should not come as a suprise to anyone that frequents a Golfsmith store. I live in MN, and GS just opened a store in Roseville about 3 blocks from a Golf Galaxy. Golfsmith prices on used equipment are incredulous!! They ask almost twice what Golf Galaxy asks for the same club only in far better shape. Also, I have made the mistake of having a club reshafted there...mistake!!! It took them two weeks to finish it and they did not even give me the courtesy of letting me know that it was completed. I had to continue to call and check up on it. Oh well, who really needs a six iron anyways in the middle of the summer in MN? Also, I understand that it is difficult to find competent sales assistants to work for such a low wage, but if you have an exceptionally stupid kid trying to sell a set of Titleist 735's to a self professed beginner because they are such a good deal then you need to stick his butt behind a register or in the back stock room. I saw happen and just shook my head and walked out. I vow to never buy anything from that store or company.

Thanks Tim LOL.

The used stuff is quite high. I have been to the Austin stores as well. One of them had a set of Srixon I302's that had been there for over 2 years. They were price at $300 for a 2-PW set. I thought I was going to be able to get them fairly cheap since they had been there forever and the brilliant "club supervisor" working that night was like "No, I would lose to much money if I mark them down." If you are going to keep clubs around that long, at least update the price sticker once in a while so people don't know they have been there forever.

Thank you.

When you guys talk about "the Austin Store" you do realize that there are 2 Austin stores. The HQ store with the driving range and has not been remodeled yet to match the rest of the new model stores around the US. Then there is the Arboretum Store which has been redesigned recently to the new store format with the indoor "range like" hitting bays.

Yes. I have been to both of them. If it makes any difference to you, I was at the Arboretum Store when I saw the Srixon's. They also had 2 fake Nike fairway woods that I pointed out to the "club supervisor."

It was nice of you to point out the fakes.

Every retail store any where is going to have their moments of bad and money driven decisions. Plus not all "old" golf equipment loses it's value very fast. 2 Years could be considered young equipment in some cases. I'm not say it applies to this situation because I don't know how that brand fairs.

As for Jim: He's a great guy to work for and I know I'll miss having him around. I had a number of great conversation with him and if it wasn't for him the position I have now would not even exist.

There are still several men and women that I know that work at Golfsmith that Have worked there for as long as I can remember (10+ years). A few of them probably back to the yellow building days. These are great people, but still do not know what half the people on this message board know as far as specs, and so forth. It is no knock on them, but they get their literature in sales meetings and learn it that way. For 90% of the golfing population that is a wonderful way to do sales. For the other 10%, we are quick to jump in and blame them from time to time. I am just as guilty as anyone, so I am not talking about anyone in this thread or on the golf board.

I still believe that Golfsmith's nitch is in the clubmaking section and in their own golf products. One of the main problems that I see is that if you cannot build your own clubs, then by having them (or someone else) build them for you, you are paying as much as you would if you bought an OEM set straight out of their showcase. Maybe not quite that high, but close enough to make you think about it.

Also, what about adding Tennis? Do you guys think that helped/hurt sales as far as the overall picture. Didn't a few other prominent golf/tennis stores go out of buisness once tennis was added? I don't play tennis so I don't know for sure. Most of the people that I know who play tennis, buy their stuff from the tennis pro shops at their clubs.

Lastly, is the low sales margins the main reason for the resignation of Mr. Thompson or did he forsee some kind of period coming where there just cannot be much more technological advances to be made in the golf department?

i know first hand how poor the corporate/management is and what poor decisions they make in terms of ordering/stocking inventory, hiring underqualified "caddies", bad treatment of good employees, etc. etc.

a lot of people blame the caddies but they should be blaming the management for bad hiring decisions.


used prices go by GS' own "manipulated" value guide (values purposely drop before 115% trade in promotions, etc.). the resale price is a minimum of 30% over the trade in credit given....sometimes more so they can "knock a few bucks off" to help a sale.

there are good clubmakers that work at GS but are hard to find.


blame the GMs of the stores for the lack of knowledge of their staff....also blame corporate's stupid "training" program that was devised by an outside consulting company with little knowledge of the golf industry.


see above about their used club pricing.


used golf equipment does lose value quickly....just like most other mass market commodities.


Tennis actually did quite well in the NYC store....exceeded expectations by a lot.

the reason for resignation is the fact that GS stock IPO'd around $10-11 and is now at $3.75 (as of yesterday).

"STUPID IS, AS STUPID DOES!" Thompson damn neared ruined a great golfstore! THANK GOD HE IS GONE! Maybe some common sense will now come back to GOLFSMITH!

come back?

...i think there has to be some to begin with

Golfsmiths 90% for 90 days on new clubs has killed their used club pricing. Teh problem is that people take new clubs out for a test drive and bring them back the next week. They become used and the store still has to shell out a 90% credit. I have developed a good relationship with the folks in my store and take all prices as suggestions. I walked into my store last year and purchased a Taylor Made R7 TP for $150 when it was marked $300. It had a slight blemish on it. Until they change that policy their suggested used prices are going to be whacked out.

Thay also recently took all of their "caddies" off of commission and put them on group incentive plans for the store. I can tell you that morale is down.

I am glad that someone pointed that out. It used to be 100% for 100 days...The 90% credit within 90 days hurts us on customers buying used, but it is a corporate decision and unfortunately many clients don't understand that. and make comments that get personal. I laugh it off, but some of the newbies on the staff are not as easy going.
I know at my store, we try and make a real effort to get clients into the right product at the right price, but now with several OEMs not allowing us to discount prices (Mizuno on new releases, Titleist (across the board), Ping (across the board), etc...we have to find other ways to make the difference...
I do agree that training could be way better. Our store/region is big on individual training, but can't say the same for everyone...
As far as being off commission, not sure where that came from as there has not been an announcement in my particular store, but it won't make a difference as the commission structure sucked 0.69% for new clubs

The store I work for (not golfsmith), We changed our comisson from individual to Pooling total sales. Its better cuz now no one fights over sales or customers. It has brought better moral in store and is working out very well.

As far as the discounts, I know PING is very tight, however cant you guys give some kind of discount? Why wouldnt the company as a whole try and change that? The manufacturers are not looking at your sales invoices??

We dont have a return policy on used equipment except for Trade in Trade up and usually that all goes to Callaway when its turned in. Were located in NYC as well, not to far from the Golfsmith. They have not hurt us at all.

They only did that at the Austin stores. The store I work in has not done that. If they do, I'm leaving.

A couple of thoughts that's not necessarily related to golf but related to this topic and the reponse within this thread.
Pooled commission=no incentive to work harder. I agree with TMgg 182, if the commission structure started to defeat the purpose of it's existence, it'll fail.
I totally agree with hiring staff that's not knowledgeable of their products and not willing to learn is a big mistake.
Remember Tandy Computer, an in house brand by Radio Shack in the early years, Radio Shack believed that you don't need to know computer to sell a computer.
It had proven a fatal mistake.
If you wish to be a top dog in whatever you do, not only you'll have to learn everything about your own products or services, you'll need to know all your competitions.

they talked about modifying the commission structure last spring in select stores. the idea was to base the commission percentage on an individual's historical sales performance.....essentially a floating percentage based on what you've done in sales in the past X amount of time.

not a terrible idea (given the existing commission structure sucked at considerably less than 1% on major OEM stuff) as it would be more meritocratic but not a system i'd necessarily have much faith in given the ineptitude of regional/national management.

jim thompson may have been a dedicated CEO but the rest of the executives/regional management are so out of touch with the "foot soldiers" that his efforts didn't really matter.

will this effect any current orders ?

Speaking only from my own personal experience, here in Atlanta the Golfsmith store is located within one mile of pga superstore in NE Atlanta Gwinnett County. The pga superstore is always busy, bright, modern looking, and full of great merchandise. The Golfsmith store looks like it is on it's last legs with very very few customers and much less merchandise to choose from. It is a sad looking store, honestly.

Then if I decide to buy something online, TGW or several other stores will do just as good or better of a job than Golfsmith.

For the past year I have seen these trends and usually this type of thing is a bad sign for the future of a business. Other than selling to clubmakers, what is it that sets them apart and makes them special? Nothing, as far as I can tell. They tried to renovate their store to add tennis and make it look more like pga superstore, but really the impression is just a cheaper imitation, no comparison really.

AG

I used to work for another large (non-golf) retailer. When they moved the sales staff to group commission, sales went down. That's because one good sales guy can put someone into a nice set of clubs. But he has to have the incentive. If the incentive is to share the spoils with other employees--why bother? If he can learn the product he sells and become the #1 guy, and make a ton of commission doing it, you will see higher numbers. Just my $.02

Jim Thompson may be a nice guy. He may be someone's best friend. But, in business, your company's financial statements and stock price reflect the grade given to your CEO. One look at the stock price, balance sheet, P&L and cash flow statements of Golfsmith show that Jim Thompson is far from being "good" at his job. His dismissal is long overdue.

Either way, it won't matter. When Arthur Blank & the big corporate boys backing the PGA Tour Superstore finish their IPO in the next 12-18 months, they'll use the funds to expand nationally and either eliminate Golfsmith, or they'll basically swallow Golfsmith and take over the stores to create mini PGA Tour Superstores in smaller cities. Otherwise, the new Golfsmith CEO and/or corporate board will wise up and merge with Golf Galaxy in hopes to keep from being completely run over by the PGA Tour Superstores. One look at how far Golfsmith store traffic has fallen in the Atlanta and Dallas markets upon the entrance of the PGA Tour Superstores is a precursor to what future lies ahead for Golfsmith if it continues to sit back and do nothing.

And if Thompson hadn't been fired for the company's lackluster financial performance, he should have been fired for allowing that silly clothespin-looking "Club Caddy" win Fore Inventors Only show on TGC! (Yes, I know the public voted......)

personally, I find that I get better sales experience from smaller stores. There's a Golf Headquarters in south Texas that I absolutely love, because they're prices are comparable to Golfsmith and Edwin Watts and major companies like that, but the service is way more personal. I've known those guys since I was 12, and have built a very good relationship and camarederie with them. I like that I can go in there, and they know my game almost as well as I do.

I got fit into my Superquad there. I got my hybrid and every club in my bag there. It's the best store I've ever been to.

Yeah, they don't have the selection, and at this point, don't even carry Srixon.


But when I can walk in, shake hands and be friendly with the guys that work there, and get great, knowledgeable service, why would I go anywhere else?

I don't now when Jim Thompson came on board to GS, but I had talked to one of the local guy here before our Tukwilla Golf Smith Superstore closed down 5-6 years ago.
It was not set up right from the start, they had too large a squre footage for the store ( don't have the exact sq ft ) like a huge ware house, and not able to make the display area attractive. When the restaurant space in the back did not become a reality and the rent went up after a few years, they had decided to close down all the larger stores and keep the smaller stores model, since from paper the smaller stores had attracted more foot traffic and business.
At the time the GS head quarter told the local workers they'll look for another store location soon, but they had never return here.
Granted, there were several local golf specialty stores here already, but staying in business and be competitive should not be that hard for Golf Smith, if the top hats go down to the ground level and really have the communication from the foot soldiers to win at the battle.

Well, that's just totally untrue. They've done that in New Jersey (Livingston) and in New York (Carle Place)

I remember back about 3 years getting a set of Callaway X-Tours, used ONE TIME, within 6 weeks of their showing up on the shelves for $600, $400 of a new set.

With the 90% refund that CAN'T happen now.

Of course the guy that buys NEW just LOVES it. Buys an $800 set of irons, uses them until he realizes they don't fit his game, and then trades 'em in for $720 credit. Not bad, not bad at all.

No, Jacka$$. All I was saying is that you should not pass judgment unless you know exactly what happened, or had insight into the inner workings of the organization.

Again resigned means= fired

obviously he was not doing a good job at his post because the company as a whole was failing. Usually when you leave your post someone wants you out for a reason.

You can be the nicest guy in the world and care about your job, but when the organization is not doing well, unfortunatly you are the fall guy.

Yeah Baby !!!

Registered one day, 2nd post is calling someone else a jackass.

Jumpin' in with both feet, eh ?!?!?!

Soooooooo, did he resign ? Or was he ASKED to resign ???

I am sorry about the "jacka$$" comment - I was kidding about that actually. However, I will agree that yes, quite a bit of time in the corporate world "resigning to pursue other interests" may mean fired. I do not know if this was the case, all I was saying is that sometimes people do resign for various reasons. I just think that unless you have an inside track to this speculation is meaningless.


As far as one comment about poor performance being the reason people are let go- yes, this is true. However, again, many poor performers are left to continue on and of course many who are doing a good job get the axe as well.As far as Golfsmith I do not know the all the little details of their inner-workings, but I do know that they were pulling a profit during many a quarter in a brutal industry (golf retail). I also think that their stock was not reflective of their performance as it was to golf and retail in general.



Anyone that has been in an executive position, or just worked at a fairly high level for a public company understands the pressure and politics associated with such a job. The fact that someone leaves suddenly or asked to leave can have as much to do with a personality conflict than baseline numbers. It seemed to me that I noticed a while back that Golfsmith's financial ratios reflected upon the company much better than the stock price.



Even though the IPO did not go as well as expected, they were aggressively paying off debt, and continuing to expand. This expansion is also important to point out; the fact that Golfsmith was able to make a profit with all the capital expenses associated with that level of growth is impressive.Other than that- I will not argue about some of their programs and promotions. From a consumer perspective a 90/90 program is excellent, but I can see how that could hurt the numbers. That said, I am not sure if that did hurt the numbers or not- I would have to see a more detailed financial analysis to make that determination.

I can't speak to the specifics as to the CEO's performance, or the finances of the company. But I can comment as to their general customer service experience.

I've been to several GS's throughout the state of California. And before I knew any better, I always took what their sales person recommended to me. I even had some old callaways fitted to me. I remember the sales guy always acted like he was doing me a favor when I asked a question or was looking for a recommendation on a club.

Throughout the years, I've discovered what the experience should be when you get properly fitted for clubs. And that you can get better customer service/price from experienced people.

Their customer service experience had severely soured me. And as a consumer, I recommend to all my friends and associates, to go elsewhere.

And even though I have a GS within 2 miles from me, I'll drive the 10 miles to a better retailer. And now the only thing I buy at GS are golf balls. And even that I do begrudgingly.

EXACTLY!!! I work for a Fortune 200 Co. and 2.5 years ago our CEO resigned, which was the coverup that our BoD wanted him gone. Stocks were not performing and it fell on his shoulders. Since he departed, we have been doing extremely well.

Fair enough. The customer experience is very important, if you and others were dissatisfied that is a big issue. I am not sure if this would fall on the CEO directly, but he does have a part to make sure other levels of management are performing and also in making sure that customer service is a top priority.



I have been a Golfsmith customer since they started back in NJ as a small catalogue outfit. I live in Texas and I must say that I have had only good experiences in the stores. Yes, there are times when I felt that the “caddie” may have known a lot less about golf than I did, however, that is a sign of the times. Sears used to have seasoned veterans selling you appliances, individuals who were in for the long run. Years ago these highly knowledgeable/high commissioned salespeople were replaced by individuals who were paid a lot less. Did the customer experience suffer? Sure.



Anyhow, to get back to Golfsmith; 99.999 percent of the time I shop there I have good service, but I understand that can vary. This is especially true during times of acquisition and expansion as one of the biggest issues with growth is keeping your hand on the pulse of the organization as you move ahead. This does not make it right- but it is a fact.

I have seen a lot of this in the financial pages as well:

Golfsmith Q3 Earnings Rise.
(RTTNews) - Golfsmith International Holdings, Inc., (GOLF) on Wednesday reported financial results for the third quarter, posting net income of $4.0 million or $0.25 per share, up from $3.4 million or $0.21 per share in the prior year quarter.

On average, five analysts polled by First Call/Thomson Financial expected the company to report earnings of $0.24 per share.

Net revenues increased 13.4% to $106.5 million from $94.0 million in the third quarter last year. Five Wall Street analysts expected revenues of $107.55 million. Looking forward, for the full year of fiscal 2007, the company expects earnings per share to range between $0.30 and $0.35. Four Street analysts expect earnings of $0.29 per share.


Does not look that bad to me.........really. There will be a few bad quarters from time to time- but that is retail. Retail was flat across the board during this past xmas season. Truly in a sad state.

Honestly- not to flog a dead horse or to prolong this topic- but Golfsmith needs to get someone at the helm quick. Right now they have Martin Hanaka running the show- not good. Does this name ring a bell ? It should; as CEO of Staples he was arrested for assaulting a young girl at her home, seems he was using his power and influence to have a " relationship" with her. Total misuse of power and the position of CEO, and of course he was fired for this. Afterwards he used some sketchy political ties to get himself in at Sports Authority. He is now on the board of Golfsmith- where if I had a stake in the organization I would be concerned about his intentions. Again I bring back honesty and strong character as CEO traits. It seems that Mr.. Hanaka is lacking in both categories.

I hate to say it but some posts on this thread are reading like a yahoo message board where people posting anonymously really do have an ownership stake and in some cases have been actual officers or ex-officers of the companies involved.

No, that is not the case. I do not own any of their stock...or have any stake in the company at all. The topic just interested me since I am a long time GS customer. That said, I have never worked for GS or any other golf retailer for that matter. I did work for Montgomery Wards during college though- and I think they sold clubs !

I do read the WSJ and follow the ins and outs of business in general- and I remember the hoopla surrounding Mr. Hanaka's dismissal from Staples. That is just fact- not speculation. You can do a search on the Inernet and find a wealth of information on the topic.

I do want to see GS do well- because I like the store. Period. No hidden agenda. Sorry to burst that theory.

Just an impression only and am not saying anybody in particular is doing this. If the shoe doesn't fit you then no need to worry about it