Nearly 500 clubs have seen sales slump18th October, 2012 by Tania Longmire
An economic survey of the golf industry has found that more than 440 clubs are struggling because they have lost their market share to just 117 other venues.
The market report warns that not only is this bad for the industry, but the rapid growth of the unnamed 117 courses could even result in them “spiralling out of control”.
A spokesman for Plimsoll, which conducted the Plimsoll Analysis – Golf Courses & Clubs, said: “These 117 companies are risking their long-term sustainability in order to increase sales, which have seen an upsurge. If they continue with their current business model they are in danger of spiralling out of control and heading for rocky ground. They need to be wary of their actions.”
The company’s David Pattison researched 929 golf course and club companies and found that over 440 of them have recently experienced a sharp drop in revenues – just as the 117 facilities have seen even bigger rises, meaning the overall market size has barely changed.
“It’s exciting to see these 117 companies increase their market share and invigorate the market, but all these extra sales could count for nothing,” he said.
“In a market that displays modest growth, it’s evident that these businesses are impacting on the rest. Of the other 883 companies analysed in the report, just over half have seen their sales dramatically decline. Due to the 117 companies surging ahead, the others in the industry are facing the consequences.
“The majority of the organisations are making solid and informed decisions, but there are some firms that need to think about their goals.”