Heavy-Handed: Whats it like buying for 122 stores? An exclusive interview with Derek "Heavy" Mills of Gart Sports
By John Stouffer
Five years ago, a regional chain called Gart Sports started carrying snowboards in a store-within-a-store emporium called Big Daddys. With the recent merger between Gart Sports (63 stores) and Sportmart (59 stores), the nations biggest sporting-goods chain was born. Now this company with 700-million dollars in sales will be aggressively expanding the Big Daddys concept.
SNOWboarding Business spoke with the man responsible for buying snowboarding hardgoods for all the Gart Sports/Sportmart stores. Some have called him one of the new powerbrokers of the industry. Hes not heavy-handed, hes just Heavy Mills:
SNOWboarding Business: Please describe what your job is.
Heavy: My title is snowboard buyer for Gart Sports/Sportmart/Big Daddys Snowboard Emporiums. I buy only the hardgoods. I used to buy the softgoods when we were just Gart Sports, but since the merger things have become a little more chaotic and very SKU intensified, so they split us up by hardgoods and softgoods. I work very closely with the ski- clothing buyer [who now buys snowboard apparel as well] to make sure we have the right lines in the stores that represent snowboarding.
Whats the chain of command at Gart Sports/Sportmart?
I answer to Steve Wilber, our vice president of merchandising, and he answers to the senior vice president of hardgoods, Art Hagan. Art answers to our CEO, Doug Morton.
Steve, Art, and Doug have been very open-minded with the snowboard program, hence the Big Daddys name and concept. Ever since we started this thing five years ago weve been very successful. They havent touched it.
Who are your main competitors?
Directly, we really dont have any competitors. We are a very unique operation. Were probably the only big-box chain in the country that can get away with what weve done for the last five years. Indirectly every mom-and-pop snowboard shop, or anyone who sells snowboard equipment on the planet, is our competition.
What do you mean when you say, "what weve done in the last five years"?
Being able to pull off a specialty-snowboarding concept center within a major sporting-goods chain and be successful with it and carry the top brands.
The whole thing started five years ago when we had one store here in Denver as a test. The next year we grew to seven, then to fifteen, and after that 24 stores. Next year well have 33 Gart Big Daddys and well add 37 Sportmart Big Daddys.
I think the Big Daddys concept helps us stay focused and shows that we are real and committed to the sportwere in it for the long run.
Has your job changed since the merger with Sportmart?
I think so. The Gart situation gave us four years to get ready for the real game. The real game is to make the Sportmart thing work in marketplaces weve never been in. So weve practiced and now were going to go and knock it out.
If a Sportmart or a Gart doesnt have a Big Daddys, will it still carry snowboarding products?
Yes it will. Itll have the all-store assortment, which is your basic entry-level pricepoint boards, boots, bindings, and clothing. Its middle- to lower-end merchandise. Obviously those stores are not going to be loaded to the gills like a Big Daddys, but theyll have some significant product.
Will Sportmart and Gart carry the same brands?
Theyll all have the same brands.
Will your goal be to make the Sportmart stores like the Gart stores, in regard to selling and merchandising snowboards?
Thats our focus. Obviously thats not going to happen in one year. Our long-term goal is to definitely do business in the snowboarding industry like we do with Gart Sports.
What are your growth plans in snowboarding, and how will you position the stores?
Were definitely positioned for another fantastic year in terms of growth, and we see no slowdown in the near future.
The way we position our stores is that were not core shops with attitude and were not huge discounters who slash prices. Were right in between. Again, Ill go back to that issue where I havent seen any other chain that can compete with us head-on and do a good job.
Were looking to build ten to twelve new stores per year for the next three years, all of which will have the Big Daddys concepts in them. For five years after that, anywhere from eight to ten new stores per year are planned. Were definitely poised and ready to go.
What are the biggest challenges facing your company when it comes to snowboard retailing?
The hardest thing for us as a big chain is finding competent people who snowboard, who know what theyre talking about, and know how to sell. There are a lot of great kids out there who know how to snowboard but they cant communicate or sell. Theyre basically just a bunch of bumps on a log, and we cant have that. We need to move product.
Do you have extensive training for your employees?
We have a training session every October, and we go around to each marketplace with whats called The Boarding School. Its basically a show-style seminar where all our vendors show up and put together their booths. A store will bring in their five people to go around to each vendor and learn as much as they can in the given time, which is 45 minutes to an hour.
Thats our kick-off. During the season, we encourage the reps to go to the stores and do follow-up clinics with new people or people who just missed something.
How has the snowboard market changed in the last year?
Consolidation is definitely the buzzword. In the old days it used to be youre in the industry and living the lifestyle. Now its a full-time job. I was lucky to get five days on the hill this year. In the past I was able to get ten to fifteen days no problem.
The reps, to survive the shakeout, dont have their summers off anymore. Ive actually talked to a couple guys in the last few whove said its very difficult and theyre not having fun anymore.
But I still think its fun or I wouldnt be doing it.
Has the consolidation affected your buying?
Yes and no. With the consolidation, were seeing a lot less closeouts now than we did, which is helping a lot of people. There were a couple of good deals and we acted upon them, but thats about it. There wasnt a lot of carryover stuff from last year.
Which brands are looking stronger?
I think Ride had a fantastic year and is positioned to have an excellent year again this year. K2 is strong. Rossignol looks like theyre making a serious attempt to stay in the snowboard market. Nitro looks strong. Vans for boots seems strong and Salomon is actually putting the buzz out there and is stepping up to the plate.
Convert and Burton are strong in apparel. Quiksilver looks extremely strong, especially the Pirate line. Wave Rave and Magnus seem strong as well.
Are there things that brands should be doing differently?
Thats a tough question. Companies have to keep in mind that the pricepoints of snowboarding are coming down and they need to address that. For a retailer and consumer, its a good thing. Obviously for a manufacturer, thats less margin for them.
Id like to see prices level off and get to a point where we have an entry-level pricepoint, a mid-range pricepoint, and the high-end stuff. Its not really happening. You might be talking ten to fifteen to twenty dollars between two pricepoints.
How important is the step-in market, and where do you see it going?
I feel its an extremely important market, and Ive been a supporter of it since the Clicker came out three or four years ago. I think the Burton introduction to the marketplace gave that whole category much more credibility. I feel its the future, and I dont see soft bindings hanging around for very much longer.
Our buy has definitely increased in the last year. I talked to one of my friendly competitors, D&E [Snowboards in Snowmass, Colorado], and they told me theyre going all step-ins this year. I think that takes balls.
I dont see us going there for three or four years. Once step-ins take off and the prices go down it will be better. Thats the biggest thing, weve got to get the systems down in price. Once that happens, its going to go full bore.
How many step-in brands can a shop support?
I honestly believe there could be five max on the market and a shop should carry three. Youve got your Clickers without the highback, the Burton, and the Switch system. Those are one, two, and three right out of the gate. Any more than that and its sort of hard to justify. But the systems out there arent 100 percent. Theres still a lot of shaking and consolidation to be had in that part of the market.
How important are rentals?
Its tough for us. Ill be honest, weve really dropped the ball on the rental business in the last couple of years. But thats definitely a growth area for us and we definitely need to have rentals in the stores. I get phone calls every day from the stores about how bad the rentals are.
Were going to stock step-ins all the way for rentals. Thats all the guys are asking for. They dont want to deal with straps or soft bindings.
People say youre one of the powerbrokers in the snowboarding industry. Do you think thats accurate?
I dont think Im a powerbroker. Im just a bus driver. Thats all I do, drive the bus.
You determine when to take a turn in the road.
Or who to pick up and who to drop off.
I always thought the bus driver was either the most-loved or most- hated person to the people on that bus route.
Someone once said, "Id rather be hated for who I am than loved for who Im not." |