The health care chaos last week on Capitol Hill notwithstanding, things have been looking pretty good since President Trump’s election last November. The stock market is up and consumer confidence is high as the President reduces burdensome regulations on business and moves to act on tax reform this summer.
But ironically the election of our first pro-gun president in 8 years has slowed the sale of firearms and softened the overall shooting/hunting market. In recent years, with anti-gun Barack Obama at the helm and with the prospect of Hillary looming for another 8 years, law-abiding and freedom–loving Americans had a deep and well-founded concern that their gun rights were in serious jeopardy, and so we purchased guns and hoarded ammunition at a record pace.
But now, with President Trump in the White House and our Second Amendment rights secure for now, firearms sales have slowed and as a consequence cast a pale over the entire industry.
Colt, Savage, Remington and Federal Premium recently announced that they are constricting business and laying off employees, and many industry experts predict that other manufacturers will follow suit.
The record sales and profits from firearms and especially ammunition of the last 5 years carried over into the general outdoor and hunting market, and helped to account for decent to good sales. For example, a guy walked into a Cabela’s store to buy 3 boxes of ammo, and he picked up a new camo jacket and some other stuff on the way to the register. But many of those impulse buys have dried up and dried up fast.
In addition to declining gun/ammo sales is the overall retail industry’s struggles of 2017 and beyond. Namely, how do retailers with heavy investment in brick-and-mortar survive and grow in the Amazon world? You likely have empty storefronts in your hometown that thrived just 5 short years ago.
You might have heard that Gander Mountain recently declared bankruptcy, and as a part of that will close 32 of 162 retail stores in 11 different states. Click to see if a GM store near you is on the list to be shuttered.
Word is that Bass Pro Shops’ $4.5 billion deal to buy Cabela’s could be in jeopardy as federal regulators have requested more information from both parties. But most financial experts predict that the merger will still be approved and completed, most likely later this fall.
The bowhunting industry is not immune. The Outdoor Wire spoke with industry experts who pointed to significant problems facing the archery business and the considerable drop-off in bow and gear sales. One big reason—the trend of manufacturers toward high-end bows that cost $1,000 to $1,500. Not all hard-working hunters can fork out a good chunk of a mortgage payment for a new bow, so fewer bows are sold each year, and people are upgrading less and keeping their bows for 4 or 5 years.
While the gun/bow/hunting/outdoor industry is facing uncertain and tough economic times, there is light on the horizon. If President Trump can get our dysfunctional Congress to work together for once and approve meaningful tax reform for corporations and individuals alike this summer, and retroactive to January 1, 2017, the industry (and all retail) will receive an immediate boost. History shows that every time people get even a little more money in their pockets, they will spend some of it on their passions. There are no more passionate Americans than deer hunters. Give us back some more of our money and we’ll buy a new rifle or bow or trail camera or camo, just in time for the 2017-18 season.
As for the manufacturers, you will continue to see some constriction and shifting business strategies in the short term, but that can be a good thing. Smart business leaders step back, analyze changing market trends and then build and market products that people will buy in 2018, in this case quality and affordable guns and bows.
For retailers large and small, the future is inescapable and simple. We all still love to go to a Cabela’s, Bass Pro or Gander store, and we love our local gun shop. We’ll still buy at those stores, but if a company is not heavily online and Mobile, they’re out of business or soon will be.
What about you? Are you spending less on gear? Buying more online? Will you purchase a new gun this year? Does a new bow cost too much?