Golfsmith's businesses in Europe and the United States operate quite differently. Please clarify how this works.
The Golfsmith International headquarters are in Austin, Texas, and they have 72 retail outlets right across the United States, with more to follow in the coming months, so the company is still in a growth period. They also have internet and catalogue businesses.
In Europe, Golfsmith is basically a wholesaler. We offer the trade an all-in-one catalogue that includes products ranging from the Sonocaddie GPS, which is doing very well, and Q Link, to club-making components. We offer everything that pros need. We also ship on day of order and pretty much all of our freight is delivered for free, even to much of the continent, which is just good customer service.
How is business going for Golfsmith Europe so far this year?
In the current climate Golfsmith is doing very well. In the UK, for the first six months of this year we hit all the numbers we set ourselves. Last October, I thought it was going to be very difficult this year so we have been very frugal with our staffing and the way we run our business, and we have managed to keep our sales up.
Our mix of business has remained consistent too: we are selling Snake Eyes Custom as a brand very well and sales are up with that, we are selling components, and our [custom-fitting] schools are selling well, so we have not really seen a drop-off from the whole mix of our business.
When can we expect to see the new generation of MacGregor hardware?
We are going to make a soft launch at the Munich golf show; some irons, woods, a driver, hybrid and some bags and accessories. Then in 2010 we will gradually introduce new models into the range, as and when we get the R&D and the technology correct. It's exciting. We have a great R&D team in Austin that is headed up by Jeff Sheets.
We will certainly continue the MacGregor heritage with the new range, and keep the quality of the technology and performance very high. We are not looking to trade the brand down.
It sounds like MacGregor is coming out with a lot of new products this Autumn?
It is a lot of product but it is achievable. The products won't necessarily be ready to send out in Autumn, but we will certainly have samples and retail programmes put together so retailers can start making their purchase plans for 2010.
Will the new MacGregor clubs be an evolution of MacGregor's past models?
We will use the latest material and forging processes but the model names will not be disappearing, so we will still have MTs, VIPs and Tourneys, but the clubs will be carrying a lot more technology than the old models.
How will the Snake Eyes and MacGregor brands work along side each other?
Snakes Eyes forged irons sell for £550 a set, and in the current exchange rate we would expect to sell an eight-piece MacGregor irons set for around £550, but there will be a difference in how the brands are marketed.
Clearly MacGregor is a bigger, more famous brand and we will look to have more distribution points for it. We only have a maximum of 150 Snake Eyes Custom distribution points but we will look to have 250 retail outlets for MacGregor.
Both brands will bring high margins to retailers, and because Snake Eyes is a custom brand, we have all the facilities here to offer an excellent custom service from MacGregor. We will focus the brand on making sure people buy the products that make them perform best. It will be a very personal brand and that is why it fits very well.
I think out current customers will be very pleased to pick-up MacGregor, with some really strong products and some retail price security. In five years' time we expect MacGregor to hold a very strong position in the marketplace.
Are there plans to take MacGregor back on Tour?
Until recently Greg Norman, José Maria Olazabal and Aaron Baddeley were playing MacGregor on Tour, and we will look to replace them as and when we find Tour golfers who want to play with our clubs and who fit our brand.
