Outdoor marketplace weathering economic storm

Oct 14 2009 by Chris Knox, The Journal

From the rolling hills of Teesdale to the challenging slopes of the Cheviot, this region has some of Britain's finest walking country. So it is no surprise that the North East is also the home to some of the best known names in outdoor clothing. Chris Knox takes a look at this growing industry.

WHILE most retailers have felt the bitter wind of recession, the outdoor performance clothing market has thrived as it helps to shield its customers from the biting winds of the British weather.

City analysts agree that two major factors that have helped outdoor retailers protect themselves from the downturn. The rise of the British ‘staycation’ as the weak pound conspires to deter tourists from foreign travel and increased media attention surrounding the importance of maintaining a healthy and active lifestyle has seen some parts of the leisure market benefit more than others.

Considering current retail trading figures, it would seem that many of the manufacturers that serve specific recreational activities are holding up better than most high street retailers.

Some of the prominent high street sports chains have borne the brunt of the slowdown, with JJB one of the biggest casualties following the recent announcement that it had ran up losses of £42.9m in the first half of the year.

This is not to say that such gloom has evaded those retailers specialising in the outdoor activities market, with recent news that clothing firm Blacks Leisure, which is a third-owned by Newcastle United owner Mike Ashley, plans to close 89 of its loss-making stores as a result of increasing financial pressure although Ashley’s own company Sports Direct seems to be weathering the slump.

That’s what makes the fact that North East manufacturers are experiencing altogether different conditions all the more surprising, with sales up at Sunderland firms Berghaus and Brasher, as well as renowned waxed jacket maker J Barbour & Sons, which has been based in South Shields since it opened its first shop in 1894.

Whether this has been sales through their sites or high-street stockists, these high-end brands have been quietly attracting an increasingly more adventurous breed of customer.

Ironically one of the biggest reasons for this, and one which is widely acknowledged within the industry, is related directly to the recession itself.

As consumers tighten their purse strings, this year has seen many people swap their annual holiday in the sun for a week or two in rural Britain.

However, that’s not to say that these holidaymakers have taken such trips any less seriously, with many intent on making sure they have just the right equipment and ensuring that they are prepared for their wander into the great outdoors.

And clothing designed to keep rugged ramblers, anglers and mountaineers warm and dry has become increasingly fashionable with rock bands as well as royalty sporting Barbour waxed jackets and teenagers donning brightly-coloured outdoor clothing as they prepare to go out for a night on the town.

That is why brand president of Berghaus Richard Cotter believes some of the more upmarket, ‘dependable’ brands are selling while some of the other retailers are faring less well overall.

He said: “I think that most people that are serious about a holiday like this try to buy the right products, as they know they could mean the difference between life and death.

“That is no exaggeration. People buying our products are making a conscious effort to ensure that they are afforded the best protection whatever conditions they may encounter.”

While the term ‘staycation’ has become a bit of a media soundbite of late, there is some real research to back up the new trend.

In the lead up to this year’s summer, new research published by the Outdoor Industries Association (OIA) revealed that almost half of the population of the North East was more likely to book an outdoor break this year, as opposed to jetting off into the sun, as a result of the economic downturn.