In 2006, Doris Kearns Goodwin published a remarkable book. In Team of Rivals, Goodwin makes the case that Abraham Lincoln succeeded in his presidency because he found common cause with three people who had, only months before, been bitter rivals for the Republican nomination for president in the 1860 election.  The end result was a team that overcame unbelievable adversity to hold the U.S. together, and win the Civil War.  It’s a powerful story that is primarily a lesson about finding a way to work together with people with different goals so that all parties achieve their most significant aims.

But why are we talking about a political book published almost 20 years ago that describes a political crisis 160 years old in an industry opinion piece? Because history has a lot to teach us, and the lessons from Lincoln’s presidency and his ability to unite rivals are particularly enlightening in the context of the outdoor industry today.

Every company in the outdoor space is competing with each other, and that competition has heated up substantially this year as overall profitability has become harder to find.

Business is shaky.  The whole industry is scrapping for every cent of margin, and many businesses are struggling.  Every brand that we carry in my little shop sells direct, and at a discount.  Every brand that we carry builds their pricing calendar around a big box store, and every brand that we carry prefers that customers buy from them rather than us.  Every store does what they can to keep customers in their four walls, and not ordering from the brand online.

But we each need others to succeed.  The simple fact is that none of us are self-sufficient.  Retailers need brands, and brands need retailers.  Reps need brands and retailers to do business with each other.

However, common ground is smaller than it has ever been.

The Sorting of Teams is Already Under Way

The sorting of the industry into distinct teams is already happening. 

This summer, if you were watching for it, you saw something really remarkable during the show cycle. Both REI and the Grassroots Outdoor Alliance honored their Vendors of the Year in various categories—and for the first time I can remember, there was no overlap in the winners. As a matter of fact, very few brands even got nominated by both.

Why?

Grassroots said that it nominated brands who supported small stores, built brands with those shops and tended to hold to pricing policies.  REI, on the other hand, celebrated pricing flexibility and those partners that were adaptable enough to change policies to help REI specifically succeed.  As anyone who works in the industry can tell you, it’s no surprise that those two organizations picked different winners because those two sets of criteria are diametrically opposed.

In the past, there was a lot of overlap between the goals that a brand, its biggest customers (almost always REI), and the mom-and-pop down the street.  The rise of DTC sales from brands, marketplaces like Amazon and Walmart, and changes in big box had already started to crack that symmetry 10 years ago.  The pandemic, and its aftermath, shattered it, as brands leaned even harder into DTC. 

There is success to be had, no matter which path you take.  TJ Maxx continues to find huge growth in off-price with its Sierra brand – meaning that some outdoor brands are moving a lot of product through that channel.  On the other end, Hoka and On have built significant brands that demonstrate excellent profitability while holding price.  And there are still a lot of specialty retailers that are thriving on a smaller scale.

Find Partners That Are on the Same Trail

So how should you pick the right rivals to work with?

First off – clearly identify what you need from your partners.  Be specific, and document those needs.  Look closely at who you plan on doing business with, and work to understand where they are headed.  When vetting them, judge them on their past actions, with less emphasis on what they say.  Ask what the partners goals are, and work as much as you can with partners that will help you succeed because it helps them be successful, too. 

Be specific in what you need, and clear in your goals with that partner.  Say those things out loud in your negotiations.  Spend most of your resources working with those brands or retailers who are headed the same direction as your business.

And then be willing to lessen your involvement with those entities who aren’t on the same trail.  Stop complaining when a partner does something that isn’t good for you – just find another partner.  Sometimes, we all need to do some business with those brands or stores that are headed in a different direction.  You should just make sure that if you are doing business with those people, it’s only because it’s highly productive – not because it is a habit.

There are multiple paths to success ahead of the industry.  We just need to pick the right team of rivals to travel that road with.

PS:  If that book sounds interesting, but you don’t have time to read it – check out the movie Lincoln.  It is the film adaptation of Team of Rivals, and won twelve Oscars.

Wes Allen, principal at Sunlight Sports, started working the floor in a small outdoor shop in the ‘90s.  Since then, he has worked for the world’s largest outdoor retailer, managed a brand, led the industry’s leading specialty retailer organization, and owned an independent retailer in Wyoming with his wife, Melissa.