business backgrounder | industry
Adventure Sells
After a sporting goods industry shakeout,
Sportco enjoys record growth.
Tom Layson
While many small and mid-sized firms are still struggling to recover from the Great Recession, AWB member
Farwest Sports, which owns Sportco in Fife and Outdoor Emporium in Seattle, is setting new sales records.
The company’s strategic operation of wholesale and retail lines of business, its local flavor and a commitment
to stable employment are the keys to success.
Imagine running a business surrounded by fierce
competitors with large national advertising budgets
at their disposal. Then imagine relying solely on the
discretionary spending of hobbyists to keep your doors
open. That describes the sporting goods industry in
Western Washington and the competitive environment
in which Farwest Sports operates.
With top-line revenues of about $32 million and 150
employees, Farwest is best known for its two retail stores:
Sportco in Fife and Outdoor Emporium in Seattle. But
what customers may not know is that Farwest also operates a wholesale operation known as Sports Service. It’s
the wholesale operation that helps give Farwest the scale
it needs to partner with two national buying services
and acquire product at prices even below those
commanded by the national brands.
“I think it comes down to pricing and having tons of product and tons of selection and
knowing you’re going to get as good a deal as
there is around,” said Lonnie Schmidt, president of Farwest Sports.
While there is no one particular key to
Farwest’s success, it’s clear that a combination of forward-looking strategy and consistent
execution are a big part of it.
Schmidt says being able to “buy right” is
crucial in competing against other regional and
national sporting goods stores that are popping
up in places like Puyallup’s South Hill area,
just a few miles from Sportco. Recent South
Hill arrivals include Dick’s and Sportsman’s
Warehouse. They join existing outlets like Big
5, Walmart and Sports Authority, all within a
square mile.
Selection is crucial too, and because of the
buying power that comes through the wholesale operation, Farwest can justify acquiring
the same b