Everyone is Running, So Why Are Shops Closing?
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Everyone is Running, So Why Are Shops Closing?
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Running is booming. So why are independent running stores struggling?
In Episode 2 of Run Intel, Josh Rosenthal sits down with Vivek Gowri, owner of San Francisco Running Company, to understand the economics of independent run specialty and what running brands are getting wrong.
Despite growing enthusiasm for running, local stores face rising costs, increasingly complicated inventory, and remarkably thin profit margins.
Vivek explains why a well-run store might only keep 7% of its revenue as profit, how brands can better support specialty retailers, and why direct-to-consumer sales aren't necessarily the threat many assume.
We also explore the relationship between run clubs, local running stores, and the communities that sustain them.
CHAPTERS
- 00:00 Why is run specialty struggling?
- 01:58 Rising costs and the 7% problem
- 04:27 What running brands misunderstand
- 06:57 Are DTC websites competing with local stores?
- 09:31 Run clubs and the future of specialty retail
ABOUT RUN INTEL
Run Intel is a podcast for running marketers, exploring the business, culture, and decisions shaping the running industry. Subscribe for new episodes and share this conversation with someone working in running.
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Outrider Office of Strategy | USA GTM for Global Running Brands
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