In the sunny Okanagan Valley in BC, the city of Kelowna has long been a centre for outdoor recreation of many kinds. With abundant mountains, beaches, lakes and parks, it invites residents and visitors alike to spend time outside.

To support the recreational activities of locals and visitors in Kelowna, a growing number of stores carry a variety of sports equipment, clothing, and other gear. One such store is OUTSIDE, with a retail location in the Landmark district of Kelowna. OUTSIDE specializes in downhill and cross country (xc) ski gear in the winter, and cycling gear in the summer. In addition, clothing, footwear and accessories are offered that support hiking, running, swimming and walking activities. Services include ski tuning, bike setups and repairs, bike fittings, and running shoe analysis and advice.

OUTSIDE was established in 1994 by a local couple who wanted to provide the community with quality brands and outstanding service. They focus on service provided by knowledgeable staff, knowledge of the surroundings (including trail and road conditions), quality gear, established brands and support of the local community.

Besides providing quality products and services, the business has been involved in local events such as running, triathlon, mountain biking and multisport races. Specifically, the store has sponsored the local marathon for the last 20 years (with a 3-year break due to Covid-19) as well as the Apple Triathlon that was part of the community for decades (until 2019).

The company’s Mission Statement reads as follows and is printed on all invoices:

To inspire an active lifestyle, we provide the best quality products and services to the outdoor community around us. We are proud to support all our customers and stakeholders with passion and knowledge.

The store hosts regular weekly road bike rides, ski demo days and special discount days for local clubs such as the xc ski club.

Important details and financial information:

Sales Channels

In addition to the retail location in Kelowna’s Landmark district, the store maintains a website. Select brands and items are listed there and can be purchased, but delivery/pickup is always through the store. These items are mostly skis and bikes, not clothing or smaller gear items.

The owners have stated that they are more interested in serving customers at their retail location so that the customers have an opportunity to try out items, demo gear and make informed decisions. It also allows them to provide services such as fittings of bikes and skis as well as finding out what additional needs the customers have.

The website was created in 2015. It is a simple affair, listing the products within a Shopify interface. The store acknowledges the trends toward online shopping with the creation of the website but it has not been their focus. Overall, the website only contributes about 5% of revenues.

Competitors and Pricing

Locally, the store is competing with three other stores. One is cycling focused with xc ski sales in the winter, run by local owners. One is purely cycling oriented but also locally owned and operated. The last one is SportChek in the mall, selling clothing and gear for a wide variety of sports.

Comparing OUTSIDE’s prices with the locally owned cycling stores, they are on par in all categories that all stores sell (bikes, clothing, accessories, xc skis, etc.). None of the other locally owned stores sell running and walking shoes, or gear for swimming. Compared to SportChek, OUTSIDE’s prices are higher for the products that are comparable, such as running shoes. They also cannot compete with SportChek’s sales and discounts.

Compared to national etailing websites (Altitude Sports, The Last Hunt, Valhalla, MEC, etc.), prices at OUTSIDE are higher by about 20% compared to regular online prices (not sales).

Promotion and Sponsorship

OUTSIDE typically has a spring sale at the end of ski season, as well as a fall sale with discounts on summer sport items. In addition, discounts are offered to local clubs that the store is affiliated with (Kelowna Nordic Ski Club, Kelowna Running Club, Kelowna Paddle Centre, and Kelowna Triathlon Club; the typical discount is 10%).

The owners used to be very involved in triathlon and were big supporters of the Kelowna Apple Triathlon (at some point even organizing the event) while it was still happening. There have been discussions within the City Recreation department to bring this event back.

Promotions and sales are advertised to all members of the store’s email database (customer profiles including email address are added, where agreed to, for each sale). In addition, the website features sales promotions that the physical store matches.

The store’s computer system identifies long-standing customers, and staff routinely offer discounts to these “preferred” customers based on their past purchases and loyalty to the store, particularly for larger items such as skis and bikes.

Previously, the store has also advertised on a local radio program airing on AM 1150. This morning talk show, which is produced locally, covers local and national topics.

Besides the discounts given to local club members, the store also sponsors other outdoor events in the community. This has, in the past, included the Across the Lake Swim, an XTERRA Race and the Cherry Blossom Triathlon.

Human Resources

As is the situation for many retail businesses, OUTSIDE has had problems finding qualified workers, especially after the Covid-19 pandemic. In the decades prior to Covid, there was a steadier stream of young outdoor enthusiasts who either spent their gap years working at OUTSIDE or became long-term employees. Recently this has been more of an issue.

While the store is willing to train any employee on the details of the business (gear, materials, clothing, technologies, etc.), a passion for gear and the outdoors is necessary to be an employee “who cares.” To advise customers on the best equipment for their sports requires some understanding of those sports. Therefore, it is difficult to determine what constitutes a qualified employee. Retail processes can be taught, as can new developments in the industry, but the passion and interest have to be there.

The store also faces the issue that new employees are being trained and educated to provide the service and knowledge level that customers expect, only for those employees to leave after a short time of employment. Ideally, OUTSIDE would like to retain knowledgeable employees to elevate the service level, for bike repairs or ski advice, for example.

Currently the store operates on a very flat hierarchy. There are no supervisors; only more or less experienced employees. When one employee cannot answer a customer’s question, he will seek help from a longer-term employee.

The average age of their workforce is 34 years, elevated by a handful of long-term employees aged 45 to 56. Employees are not paid on commission but instead earn an hourly wage of the BC minimum wage plus 25%.

For information on BC’s Minimum Wage details, please see the following source:

Minister of Labour. (2024, April 22). Minimum wage. Province of British Columbia. https://www2.gov.bc.ca/gov/content/employment-business/employment-standards-advice/employment-standards/wages/minimum-wage

General Management

The OUTSIDE store would like to continue its legacy in Kelowna and support the ever-growing population with the best products and services for their outdoor passions. The industry is evolving, for example with the arrival of e-bikes, making cycling more accessible to a growing customer base.

In addition, external factors can have a big impact on the store. For example, climate change may affect the ski season and enthusiasm for snow sports. The growing dependency and adoption of online shopping (including adjustments of online retailers to make returns easier and shipping quicker) might change shopping habits of the customer base.

The store has, in the past, relied on their staff and customer voices to stay on top of developments and trends. However, they would like to start a more formal market research program. Through this approach they hope to gain more detailed and more valuable insights into the market, which would allow them to tailor their products and services better. The owners are tentatively thinking to not only review secondary sources such as industry reports and Canadian population changes but are also considering creating their own data by potentially using focus groups.