Stewart Golf: Making the most of the silver lining
PROCEEDING WITH CAUTION
The COVID-19 pandemic has undoubtedly caused disruption to businesses globally; although a lot of this disruption has been debilitating for many, some businesses have found themselves in a more positive position than they might have considered possible.
Stewart Golf has been one of those ‘unlikely beneficiaries’ as founder, Mark Stewart, described it when we spoke to him about how the business has benefited from an unforeseen market change.
SURVIVAL INSTINCT
Like many businesses at the beginning of March 2020, Stewart Golf was assessing the outlook for the company; with sports and socialising being postponed for the foreseeable future and golf courses in the UK and many other countries they distribute to totally closed, Stewart Golf shut down production and braced for the unknown.
Having spoken to Mark about his company in our last magazine, we know that Stewart Golf is very focused on its employees, and so the decision was to take the steps necessary to keep the lights on, the business moving, and employees paid until the fog cleared.
As part of plans to keep the business trading, the Stewart Golf applied for the coronavirus business interruption loan scheme (CBILS), with the whole process taking just two weeks, which Mark explains felt considerably longer at the time.
FROM THE DARKNESS CAME LIGHT
With the company now prepared for four months of limited activity, the lockdown restrictions in the United States began an unexpected surge in sales for the Gloucestershire- based company. Many golf courses in the United States have remained open throughout the COVID-19 pandemic, but social distancing guidelines have meant that the use of rented buggies is either not allowed or restricted to single-rider use, so walking has been the only option left to those who wanted to continue playing. The result has been a surge in demand for golf trolleys across the USA.
Stewart Golf USA website sales for the months of April and May 2020 were up by an astonishing 886% to a level of sales that was more than double the entirety of 2019. The first nine days of June were tracking a barely believable 1,898% up year-on-year, despite all trolleys being on an 6-8-week lead time.
CHAMPAGNE PROBLEMS
As with any rapid growth, the increase in sales has not come without its challenges and Mark describes these as ‘champagne problems’, fully appreciating the difficult times that some companies find themselves in.
The logistics of the situation are now the company’s main challenge; supply chains for components have slowed as all companies get to grips with operating under new safety guidelines or on reduced staff due to having furloughed employees themselves.
To address the increased level of demand, three weeks into the furlough scheme Stewart Golf had returned everyone to work and has now taken on ten new employees in production more than doubling its production staff. Training new employees sufficiently to produce the quality, handmade products Stewart Golf has become renowned for, whilst adhering to social distancing guidelines also takes time.
PROCEEDING WITH CAUTION
Mark remains modest in his assessment of how the business has performed and attributes the success to a change in market conditions of which they managed to take advantage. Globally, the Swedish golf market has remained strong, but there has equally been a far more cautious approach in many countries, where consumer confidence is low and may be slow to recover.
There is no doubt, however, that Stewart Golf is a business that was ready to respond to the change in market conditions and has taken advantage of the opportunity presented to them in an efficient and well- structured manner. Having a well-established distribution partner in the United States and focusing on effective marketing for the last 10 years has proven to be key in their success this year.
Looking to the future, Mark asserts that although the level of sales may not remain, the current situation may have encouraged a change in golfing culture in the United States in particular. Where buggies were once the norm, their new customers and other golfers alike may recognise there are courses out there they did not realise they could walk and will be encouraged to do it more.
MEET THE CO-FOUNDER
Mark Stewart
Mark gained GCSE’s & ‘A’ Levels in Maths, Physics and Design and Technology at Newent School before graduating from Loughborough University in 2003 with a degree in Manufacturing Engineering & Management.
Mark won a ‘Young Businessperson of the Year’ award in 2009, and an ‘Outstanding Leadership’ award in 2018 after completing a Postgraduate Diploma in Leading Business at the University of Gloucestershire.
Mark has been married for 10 years to his wife Alexa and they have two young children. They live in Cheltenham. Outside work and family life Mark enjoys triathlon, cycling, DIY and the occasional round of golf!