Popular adjusts business as national retailers enter Phoenix - Popular Outdoor Outfitters, Phoenix, AZ

Discount Store News, Oct 4, 1993

PHOENIX -- There's nothing like the arrival of Wal-Mart and Sports Authority in town to persuade a family-owned, $20 million sporting goods chain to undertake a major transformation.

"When Wal-Mart arrived about three years ago, it forced us to sharpen our pencils," said Ritchie Lispon, vice president for marketing and information for Popular Outdoor Outfitters, and son of the founder, Harry Lipson. "We were getting beat on low-end, entry-level products."

And when The Sports Authority opened the first of three stores in the market--with a fourth unit in the offing--it prompted Popular to redefine the way it does business.

Started in the last 1950s as a military surplus store, Popular carved out a niche in back-packing and family camping. Including tents, sleeping bags, backpacks and hiking footwear, the category represents about 50% of sales. Canoes, inflatable fishing boats and kyacks account for 20%.

Popular, now operating 14 stores, including a new unit opened last month in the wealthy Phoenix suburb of Scottsdale, also specializes in hunting apparel, ammo and accessories, activewear, skiwear and fishing gear.

In its makeover, the most unique step Popular took was to scarp its own warehousing operation in February, cutting staff by 25. It hired public warehouser Southwest Freeport to handle its warehousing, ticketing and distribution. "It's more efficient and f costs less," Lipson said.

Popular also upgraded its computers and switched from in-house bar codes to vendor UPC codes in order to reduce warehousing costs. The chain bought new PC-based registers from STS, Montreal, which handle store scheduling and enable associates to make merchandise in-stock queries of other stores.

Popular operates under a five-part Happy Campers pledge, one of which is to help customers locate items, even if it means calling a competitor. "We do a lot of inter-store transfers," Lipson said.

Special orders represent a small part of sales, he said, but they are another important customer service. The other parts of the pledge: helpful advice include everyday savings, satisfaction guaranteed and a low-price guarantee, with a refund of any difference.

At four of its Phoenix stores, which average 8,000-sq. ft., Popular holds annual parking lot blowout sales, offering products at traffic-building, or even loss-leader prices. It also runs periodic newspaper circulars and extensive ROP promotional ads.

In a marketing exclusive, Popular hands out free copies of Wildlife News, a newsletter the Arizona Game and Fish Department previously mailed tro those who take out hunting and fishing licenses. Though taxpayer funded, the newsletter isn't available at The Sports Authority.

Within its limited selling place in stores (8,000 sq. ft., compared to 40,000 sq. ft. at Sports Authority), Popular also responded to new competitive challenges by increasing hiking boot skus to 100 from 60 and adding new lines of boot socks such as WigWam. Hiking footwear is a huge category, increasing 40% a year, he said.

The hiking boot section features a 12-foot-long, included board so customers can try out boots under simulated mountain hiking conditions, he said.

The competitive pressure eased somewhat this summer when Herman's, Carteret, N.J., closed all six Phoenix stores after declaring Chapter 11. Otherwise, Lipson said, "everybody's knocking on our door," including Oshman's, Big 5 (in Yuma, Ariz.), Kmart, Target and Wal-Mart.

In August 1992, Popular entered a new market, Tucson, adding two stores to its total of nine in Phoenix and one each in Flagstaff and Yuma. For additional expansion, Popular is considering a third unit in Tucson and one in Prescott.

The new Scottsdale store represents the only extension for 1993, and Popular expects to open one or two more stores within Arizona borders before expanding out of state.