Shopping Centers Today -> May 1998
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Golf Galaxy brings big box retail to the fore

By LINDA HUMPHERS

Those planning a career move around the catchphrase "follow your passion" might want to take a look at how the founders of Eden Prarie, Minn.-based Golf Galaxy put that idea to work.

Randy Zanatta and Greg Maanum had been Best Buy executives for years. In Mr. Zanatta's 17 years with the discount retailer, he was vice president, marketing/supervisor of buyers; Mr. Maanum spent 13 years as vice president, visual merchandising.

"We both loved golf," Mr. Zanatta said, "so we decided we should open the Best Buy of golf -- we'd offer huge selection, great prices and excellent service. We spent about two years creating a business plan, and in 1996 we left our jobs to open Golf Galaxy."

Their store does a lot more than just sell a wide variety of clubs, apparel and equipment; it also allows customers the chance to play virtual golf, practice their drives during inclement weather and take lessons from PGA pros.

Mr. Zanatta and Mr. Maanum's research turned up some surprises, the most startling of which was golf's wild popularity in the northern-tier states of Minnesota and North Dakota.

"We looked at participation levels and found that Minnesota actually has the second highest percentage of golfers in the nation, right behind North Dakota. The average number of per capita golfers in the United States is 11%; in Miami, it's only 8.6%, and in Minneapolis, which is roughly the same population, it's 24% -- three times higher. And in the state of Minnesota, 20% of the population plays golf. People up here are nuts for golf," said Mr. Zanatta.

"We think the reason there's so much participation is that we take advantage of nice days more than people in warm climates. And the participation levels are utterly consistent for other outdoor sports, too. Tennis, boating, you name it, they see a lot of activity up here," he added.

Mr. Zanatta, who is from Minnesota, had a hunch that his home state was ripe for this concept, and the research confirmed it. Armed with $1.2 million from private investors and $600,000 of their own, he and Mr. Maanum started their rollout.

They knew the store itself would have to appeal to golfers, so they chose Design Forum of Dayton, Ohio to create the prototype. According to Mr. Zanatta, Design Forum's president Lee Carpenter "instantly understood what we wanted. Lee's an avid golfer who belongs to two golf clubs in Dayton. He's a golf nut, too."

The 16,000-square-foot store opened last April (the same weekend Tiger Woods won the Masters at Augusta National) and is doing so well that Mr. Zanatta and Mr. Maanum have decided to open five more stores this year in the upper Midwest.

When customers walk into Golf Galaxy, they're immediately hit with the store's strong visual impact, said Andy Lehman, Design Forum's senior vice president, account management.

"The entire wall on the right is covered with sets of irons," Mr. Lehman said. "And there's a golf course simulator at the end of the first leg of the racetrack layout. It really draws people back because they can see the screen from the entrance."

The simulator, which projects famous golf courses onto a screen that golfers can play (in the virtual sense), is one of several activity areas that motivate shoppers to spend time in the store. In addition to an in-store driving range, there is also a children's area -- "Junior golf has been exploding for years," Mr. Zanatta said -- a putting green, a shoe store and a section with golf-themed home furnishings.

There is also a travel agency where golfers can book their vacations, a repair area for regripping and reshafting clubs, and two PGA pros offering lessons.

"Where Golf Galaxy gets a leg up on its competitors," Mr. Lehman said, "is in providing services that aren't found anywhere else. This store is about more than product assortment."

Golf Galaxy, located less than a mile from the mammoth Mall of America in Bloomington, Minn., is also one of the few off-course golf facilities to be PGA recognized, which enables the pros to maintain their PGA licenses. "'Everything for the game,' is our tag line," Mr. Zanatta said.

For the record, Mr. Maanum's handicap is 11 and Mr. Zanatta's is 7 -- very competitive numbers they hope to improve on with their easy access to lessons.

"We have a digitized swing analysis video monitor that's really neat," Mr. Zanatta said. "You can see exactly what you're doing right and exactly where you need to make adjustments."

And that's a pretty good place to be when you're following your passion.

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