PFAS, supply chains, and community involvement are all top of mind for one independent outdoor specialty retailer based in Rapid City, South Dakota.
Outdoor store Roam’n Around serves the Black Hills area in the western part of the state, carrying outdoor apparel and gear as well as providing services to the local outdoor community.
In the downtown Rapid City area, the store has 9,000 square feet of space near an outdoor area where people ice skate in the winter and listen to music in the summer.
The Daily spoke with co-owner Jon Machacek about how business is looking, the store’s consignment model, and what brands are selling.
Sales Down On PFAS
Overall sales for 2023 were down low double digits from the previous year, according to Machacek. He admits he’s comparing his numbers to coming off a good year.
“I think the whole industry is seeing a recorrect of a lot of things,” he said. “There’s a lot of factors coming into play about what’s happening in our world.”
Top of mind for Machacek is the PFAS situation, meaning not only having to get rid of the product that’s no longer viable, but the difficulties in sourcing PFAS-free products.
General inventory overhang hasn’t been as much of an issue, but he’s seeing a lot of brands “recorrecting” for PFAS right now as they try to comply with regulations.
There’s no statewide regulation banning PFAS in South Dakota, but brands that are making adjustments to sell into other states like California and big retailers like REI are experiencing supply-chain disruptions, according to Machacek.
For example, Machacek wanted to stock some high-end La Sportiva climbing shoes but couldn’t place an order because the shoes were out of stock as the company is in the process of switching manufacturing facilities to comply with the regulations.
“It’s a compounding thing,” Machacek said.
Success With Consignment
That said, Machacek expects to see “a good, nice redirect” in 2025.
Despite being in business for 17 years, Roam’n Around is still getting an influx of new people who are either online or big-box store shoppers.
Machacek is also “really happy” with the consignment section the store started about six years ago.
He doesn’t buy most of the apparel and gear that customers bring in outright – most of the consignees choose store credit – so it’s difficult to track the money coming back in. But he estimates consignment sales make up about 8% of the store’s total revenue.
Machacek said the customers have been appreciating the “good quality stuff,” and it brings foot traffic in the door.
How it works: If a consignee signs up for the store credit option, the shop gets 25% of the consignment sale and the rest goes to the customer via a Roam’n Around gift card. If the customer chooses cash back, it’s a 50-50 split when the item sells.
What’s Selling at Roam’n Around
In outerwear, Patagonia is a clear winner.
Machacek said his store is one of the only sellers in the region, and despite Patagonia’s politics not necessarily always aligning with the local culture, the company still has a “huge following” even with the higher price point.
“Our area has become a little bit more price-driven,” Machacek said. “Over the past two years, we’ve seen such a huge increase in MRSP prices that it’s getting up there to buy even a Patagonia down coat.”
The store also does well with brands such as Prana, Kuhl, Cotopaxi, and Fjallraven.
“We believe in the products from all of these companies,” Machacek said.
Down, Synthetic Coats
The store has tried to sell more casual, lifestyle coats in the past but hasn’t seen as much success there. Down and synthetic coats are what work best.
Cotopaxi’s colorful designs were trending upward for a while, but now Machacek’s customers are looking for more solid colors and moving away from that.
He also singled out Kuhl’s “work-friendly” coats for their durability and performance, and Black Diamond’s raincoats in both men’s and women’s styles.
Topo Athletic Up in Footwear
The store started carrying Topo Athletic footwear about a year and a half ago. It’s part of the store’s footwear assortment that includes Altra, Oboz, and On Footwear.
Customers like Topo’s roomy toe box with a little bit of drop in the heel, Machacek said.
Osprey the Packs Leader
Among backpacks, Osprey is the clear leader, and Roam’n doesn’t stock many other brands.
Machacek said he’s going to be pursuing the ultralight category, including bringing in Six Moon Designs.
Other Gear
In sleeping bags and tents, Nemo Equipment and Big Agnes are the two leading brands in the store. They also carry Eagle Creek luggage.
For dogs, Ruffwear does well.
Experiences Sell
The store has created a good business shuttling people on the Centennial Trail, which is a 124-mile stretch suitable for hiking, horseback riding, and mountain biking in the Black Hills from Wind Cave National Park to Bear Butte State Park.
“Until COVID hit, the trail didn’t even really get thru-hiked,” Machacek said. “But now people are coming in from Florida and Texas, you name it, flying in and driving in to hike the trail.”
Not only does Machacek drop people off at spots on the trail, but his store also helps people if they need supplies or run into problems. He expects that business to grow.
Over the past 17 years, Machacek has learned the importance of community and helping people in the town to shop locally. He’d like to do more in-store events.
“We don’t do enough of that,” he said. “We know how important it is to shop local and keep your money in the community.”
Bart Schaneman can be reached at [email protected].