What were the outstanding issues?
It is difficult to go into specifics but it was largely concerning the legal and financial agreements. Obviously it was important to make sure this is sound financially, and beneficial to both Foremost and TGI.
How will the new show differ from the previous format?
The obvious difference is that the show will be open for Foremost and TGI pros at the same time, and indeed to any PGA professionals. The PGA’s involvement will also add another dimension in terms of education.
Another factor is that by combining the two [previous] shows, we can increase the allocated space for suppliers, which will mean better quality of stands, with the possibility for areas where equipment can be trialled, which has been successful in Orlando.
We also want to give suppliers an opportunity to demonstrate how they can support sell-through, so the emphasis moves towards this being a retail support show.
How has the recession affected Foremost?
As a company, Foremost has weathered the recession very well. Our accounts for 2009 show a 30% increase in post-tax profit for the company, compared to 2008.
The occasional knee-jerk reaction to the recession by golf clubs is my biggest long-term concern. Clubs are looking to save costs, and some start to consider whether they can manage without a club professional. The pro needs to provide added value for the club, and make sure the club is aware of it. Perhaps that means the pro getting more directly involved in membership recruitment and making sure events run smoothly.
Frankly, if clubs decide to replace the professional, what they often find is that what they bring in to replace the professional is more costly and less beneficial to the club. So my biggest concern coming out of the recession is not how we can compete as a company and not how professionals can compete as retailers, but how professionals’ employers might take actions that are not necessarily based on the right information.
What is the solution?
Five years ago, Foremost started offering professionals an Integrated Marketing Solution, which consists of a website and a weekly email newsletter, the content of which we drive on behalf of the professional. This has two prime functions: to communicate with golfers themselves, and also to demonstrate the pro’s value to his employers.
Is competition from off-course retailers a major problem?
Our data shows a positive increase in business over the past two or three years. Ironically, the arrival of internet retailing means that off-course retailers can no longer compete in terms of price and breadth of range. Pricing on the internet tends to be more aggressive and internet retailers can offer a limitless range, so I don’t see pros losing to off-course retailers. Even with the internet we are not seeing a downturn in sales, but we are seeing price pressure. The golfer is using the internet as leverage to gain lower prices from the professional. Online retailing is maturing all the time, and all retailers have got to embrace the internet. In the future it won’t be a case of ‘them’ or ‘us’, and our current digital proposition will eventually include e-commerce.
Won’t online sales keep golfers out of the pro shop though?
No. Our challenge is to educate the golfer, and then for the golfer to make a decision. If a golfer wants to buy a particular set of clubs he can find a saving online, but the pro is also offering personal fitting advice, and pre and post-sales service, so in fact, the pro ends up offering better value for money.
How strong in the Foremost membership at the moment?
We have seen a steady membership increase, and at the end of 2009 we had just over 1,000 members. We see 2010 as a year for modest growth in terms of numbers, and the fact is that the UK only has a certain number of golf clubs, so there is a limit to the potential size of our membership. The most important factor for us in 2010 is actually facilitating better business among our professionals.
How do you see the role of the pro changing over the next decade?
We need to move away from clubs having a small, traditional pro shop, and for clubs and professionals to work together to develop a performance centre, where the pro can deliver a complete solution to golfers. This is why the club pro has a strong future, because he does not simply sell on a price proposition, but he is the only person who can offer such product knowledge and advice on fitting and the golf swing.
