Retail Sales in Climbing Gyms

The CWA Newsletter, Lines, recently published a review of the benefits of selling climbing related products in climbing gyms. That article made many effective arguments. However, I think there is need for a counter argument to selling retail products in gyms. What are some reasons that perhaps selling retail products is not an effective strategy?

1. Your staff is your number one link to great customer service and risk management in your climbing facility. Do you want them focused on selling retail products?
2. Retail buying is somewhat of an art. Do you want to hire and manage the resources required to do this well?
3. Climbing gyms are dusty places. Can your keep your retail goods clean and merchandised attractively for your customers?
4. I have yet to see a gym P&L that shows a margin for retail sales that exceeds that of other gym programs. Most hover around 35%, which is not equal to most retail stores. If you track your revenue and profit per square foot of space (which you should), your probably not seeing a great result for retail sales.
5. You are competing with local retailers that you can make allies by offering gear deals through their stores in exchange for promotion of your facility and possible store employee membership programs.

There are certainly gyms with respectable retail businesses as part of their operation, but are they maximizing their return on assets and investment with their approach? Have they taken the time to do this analysis? You may want to play devils advocate before you take the plunge.