GOLFSMITH & GOLF TOWN

That Bob Guy · May 21, 2012

I guess you've heard?

I don't see it posted yet, But I understand Golf Town has purchased Golfsmith. Don't know much, but I guess it was for around 100 million, 59-60 stores across the USA. Golf Town's store in Massachusetts will operate under
the Golfsmith name. That's all I've heard.

TheMoneyShot · May 21, 2012

I wonder when the signage will change?

Wooderson · May 21, 2012

That is shocking to me because I don't know much about the golf equipment business. I have never heard of Golf Town, or seen one of their stores. I would have thought Golfsmith was the largest golf retailer in America. Does anyone know how the golf equipment retailers rank?

Llortamaisey · May 21, 2012

[quote name='Wooderson' timestamp='1337603390' post='4949854']
That is shocking to me because I don't know much about the golf equipment business. I have never heard of Golf Town, or seen one of their stores. I would have thought Golfsmith was the largest golf retailer in America. Does anyone know how the golf equipment retailers rank?
[/quote]

I'll have to check market reports in buying terms of gross sales for brick and mortar locations but from what I remember the top sorts out like this:

1. Dick's / GG
2. Golfsmith
3. EW
4. PGATSS / Martin's

As far as Golftown goes, they are the most profitable golf retailer worldwide. The best analogy I can make is Golftown is to Canadian golf as the NFL is to American Professional Football.

AFatMonkey · May 21, 2012

[quote name='Llortamaisey' timestamp='1337604265' post='4949900']
[quote name='Wooderson' timestamp='1337603390' post='4949854']
That is shocking to me because I don't know much about the golf equipment business. I have never heard of Golf Town, or seen one of their stores. I would have thought Golfsmith was the largest golf retailer in America. Does anyone know how the golf equipment retailers rank?
[/quote]

I'll have to check market reports in buying terms of gross sales for brick and mortar locations but from what I remember the top sorts out like this:

1. Dick's / GG
2. Golfsmith
3. EW
4. PGATSS / Martin's

As far as Golftown goes, they are the most profitable golf retailer worldwide. The best analogy I can make is Golftown is to Canadian golf as the NFL is to American Professional Football.
[/quote]

'GOLF' (golfsmith) may be facing a large mass tort case from all of their shareholders against the the board of directors for the company's sale to golftown. That along with their latest quartely earnings report... they were at a net loss operating expense, just before the season is about to start?!?! Their stock rose to a 52 week high after the purchase... but I wouldn't hold my breath.

avgjoe · May 21, 2012

Links to the announcements/stories were posted last week in the deals forum

parpar41 · May 21, 2012

A couple of GolfWrx threads started a week ago when the announcement hit the press: http://www.golfwrx.com/forums/topic/658258-golf-town-buys-out-golfsmith/page__hl__golftown+buys

ktkn · May 21, 2012

[quote name='Wooderson' timestamp='1337603390' post='4949854']
That is shocking to me because I don't know much about the golf equipment business. I have never heard of Golf Town, or seen one of their stores. I would have thought Golfsmith was the largest golf retailer in America. Does anyone know how the golf equipment retailers rank?
[/quote]

Not sure about the accuracy, but an employee at Golf Galaxy told me that Golftown was somehow related to Golf Galaxy, either run by the people that used to run Golf Galaxy or something like that. Again, just for conversation and no idea on accuracy and too lazy to look it up.

Fact: Golftown is the biggest retailer in Canada who very recently expanded in the Boston area with a few stores and stated they were going to aggresively expand into the USA market. Given that, I didn't know they were big enough to buy Golfsmith, who I thought were one of the biggest.

MtlJeff · May 21, 2012

I've said it many times and i'll say it again: Golftown is maybe the best big box store i've ever seen in any medium. Their staff is knowledgeable enough for the most part, their prices are competitive and they discount to move inventory, they usually have 1-2 certified fitters and a quality club builder. The one near my place has one of the top clubbuilders in quebec in fact. I honestly won't buy clubs anywhere else except the odd one on ebay

parpar41 · May 25, 2012

[quote name='ktkn' timestamp='1337643432' post='4953910']
=
Fact: Golftown is the biggest retailer in Canada who very recently expanded in the Boston area with a few stores and stated they were going to aggresively expand into the USA market. Given that,[b] I didn't know they were big enough to buy Golfsmith[/b], who I thought were one of the biggest.
[/quote]

GolfTown is owned by a huge pension fund.