The clubbuilding industry is in for some significant changes with the recent purchase of GolfWorks by Golf Galaxy.
Let’s look at the signs that are starting to emerge. Golfsmith, founded in 1967 is the granddaddy of clubbuilding. They began with a catalog that supplied components to the do-it-yourself clubbuilder. Then, they expanded into brand name merchandise, started opening retail stores (currently 50+ stores) with a clubbuilding department, and now have a powerful Internet presence. In 2002 they were bought by Atlantic Equity Partners III.
Golf Galaxy was founded in 1995 and started out opening retail stores (currently 51 stores). They went public in 2005. In 2005 they launched their Internet site, recently purchased GolfWorks (considered the 2nd largest component seller) and intend to open clubbuilding departments in each store. With this recent acquisition, they are clearly setting their sights on Golfsmith.
It will be a little like the ongoing cola war between Coke and Pepsi. They both sell the same product, they both have major brand visibility and they both sell to the same customer. With both companies being well financed, both will need to keep propping up their value with increased sales. The only way to do that quickly is by adding new stores or by acquisition.
Look for a marketing battle in the next few years as these two well financed gladiators try to steal business from each other. This should open up market opportunities for smaller players that can fill niches not adequately covered by the BIG TWO, especially in the clubbuilding realm.
| « Golf Gear News Podcast #11: Ford Dumps Golf, Sex to Play Augusta?, Lucifer's Anvil Course, Geese Police | On the Champions Tour: The Second Coming of John Harris » |
5 comments
-
§ Marcia Stasch said on : 2006-03-30 @ 12:46
This is neat. It looks like you did a lot of work on this. Keep up the good work it may pay off.
-
§ Customer said on : 2006-07-27 @ 23:12
Golf Galaxy is a WAYYYYYYYY better than Golfsmith, its a scientific FACT.
-
§ Randy Benter
said on : 2007-05-15 @ 22:11
Since Golf Galaxy purchased Golfworks, the service at Golfworks has spiraled terribly downward. They migrated their web site to new servers weeks ago and many of the links are still broken. I submitted orders weeks ago that have not shipped yet and was recently told by Golfworks that it may take 5-6 more weeks to fill my order. In the past, they always shipped my orders immediately and if an item was on backorder, it only took a few days longer. There is a Golf Galaxy in my area and I like their store. I like the fact that many of the components can be purchased off the shelf. But, the two companies seem to be botching this merger so badly that they may lose many customers along the way. I have no allegiance to Golfsmith, but all my orders in the next few months will go to them. -
§ Samson said on : 2010-01-13 @ 09:48
hahaha. 'club building war' gave me a hilarious visual. it should be interesting to see what happens.
-
§ Puma shoes said on : 2010-03-08 @ 22:32
club building war' gave me a hilarious visual. it should be interesting to see what happens.
Comment feed for this post
Recent comments