How outdoors brand Backcountry lost its way

But the brand has changed over the years while the online landscape around it swelled. Merchandise began catering to a wider audience. Former employees who spoke with Modern Retail say it appeared to have lost its identity. And while the company reportedly hit close to $1 billion in sales in the peak of the Covid-19 online sales boom and plotted an ambitious retail footprint, owner TSG Enterprise began pursuing a sale last year amid a wider downtown in the retail industry. Now, Backcountry has landed at a firm known for scooping up struggling brands.

Backcountry confirmed in a press release on Monday that it was recently acquired by CSC Generation Enterprise. The portfolio company operates nine brands, including Sur La Table and One Kings Lane. While many onlookers weren’t shocked by the news, there was some distress among past employees or outdoor sector experts who had fond memories of the brand’s heyday. CSC and Backcountry declined to speak with Modern Retail for this article.

Robertson served as CMO from 2000 to 2013. He left when the brand began pursuing what he calls “the squishy middle,” or expanding too far beyond its athlete-focused origins. “They thought we could sell more fleece jackets if we were less hardcore,” Robertson said. The expansion may have driven away some of its core fans. But, “to be fair they grew the thing twice as big as I got it,” he said.

But the consolidation comes amid ongoing stress in the sporting and outdoor retail world — and Backcountry is far from alone in feeling those effects. Earlier this month, a court signed off on the $10 million sale of Eastern Mountain Sports to UK-based Mountain in Warehouse. Elsewhere, companies like Academy Sports + Outdoor and Foot Locker have reported revenue drops this year.

Big 5, which has about 425 stores in the U.S., saw its same-store sales decrease by 11.7% in the first half of 2024 compared to last year. It reported an EBITDA of negative $8.7 million and expects same-store sales to decline in the mid-single digits in the third quarter. CFO Barry Emerson said while the affordability-focused company may be benefiting from shoppers trading down, the effect isn’t large enough to make up for discretionary spending drops.

“The current operating environment reflects a continuation of persistent macroeconomic challenges,” Emerson said in an earnings call. “There is no question that our core customer is feeling the cumulative impact of inflationary pressures in key areas such as gas, rent, groceries and interest rates,”

The sector isn’t without signs of growth, though, as the outdoors market remains lucrative. REI is in the midst of opening new stores near national parks. Cotopaxi opened its first East Coast store in Boston’s Newbury Street this summer. And Dick’s Sporting Goods hit a record $13 billion in sales last year.

CSC Generation Enterprise’s acquisition includes Backcountry’s private label brands and other owned brands like MotoSport, Competitive Cyclist and SteepandCheap. Terms of the deal were not released. CSC and Backcountry told Modern Retail in an emailed statement they are finalizing details and strategic plans.

“At this moment, we are not able to share specifics,” the statement said. “We are committed to keeping our stakeholders informed and will provide updates through official channels once we are ready to share more details.”

Backcountry CEO Melanie Cox said in a statement that the acquisition “will enable us to expand our market presence and continue delivering outstanding outdoor experience.” Justin Yoshimura, founder and CEO of CSC, said in a press release he sees “significant potential for continued growth.”

Former employees say they want to see the company get its swagger back. “I hope it’s successful,” Robertson said. “This is a legacy for a lot of us.”

Backcountry’s beginnings are the stuff of e-commerce folklore. Former pro skiers Jim Holland and John Bresee started selling avalanche beacons in 1996, then built a small shop in a mechanic’s garage. Over the years, it expanded to new categories like climbing, cycling and trail running. It operated as Backcountrystore.com until it acquired the Backcountry.com domain name for $75,000 in 2004, per an achieved press release that showcased its lighthearted and offbeat humor; “This name change and domain purchase is not an example of a Web survivor returning to the churn and burn years of the dot com implosion, it merely represents a re-branding effort and an expansion of our options.”

The business grew rapidly. Holland wrote in Utah Business last year that he remembered leasing its first 27,000 square foot warehouse. “I remember putting up a volleyball net in the empty half of the warehouse and having a company party,'” he wrote. “While everybody was having fun, I was sweating it out a bit, thinking, ‘I hope we can fill up this warehouse!'”

That came to fruition – with larger warehouses and more employees to come. Then Liberty Media took a controlling stake in Backcountry and its sister business in 2007, though Holland remained on the board. The company at the time was a three-time winner of Internet Retailer’s 50 Best Retail Sites award, and on the Inc. 500.

Carly Driscoll, who worked at Backcountry from 2010 to 2014, started in customer service and rose through the ranks. She was drawn in by the company’s mission to serve those who loved the outdoors and the founders’ own passion for protecting the climate. “It was humble and authentic, and the founders brought really cool, smart, innovative ideas,” she said. “When I worked at Backcountry, you were so proud to have goat stickers on anything you owned.”

Then, the company leaned heavily into athleticism and adventure. One three-minute campaign featured death-defying footage of skiers, climbers and kayakers in precious moments. “When you’re ready to suck the bloody marrow out of the bone we call life, we’re ready for you,” the ad concluded.

At this point, the company carried the bona fide credibility and the camaraderie along with it. Driscoll, now the founder of a digital media firm, remembers a brand party on Main Street in 2013 following the Powder magazine ski awards that had numerous pro athletes in attendance. “We were that crew that had community,” she said. “It’s hard to find today. But Backcountry had that.”

Backcountry and its portfolio were acquired by TSG Enterprises in 2015. In 2019, it earned some bad press for going after brands to protect its trademark, leading to a temporary “Boycott Backcountry” movement. CEO Melanie Cox, who came from apparel after working at brands like Urban Outfitters, Wet Seal and Rue 21, took over the helm in 2020.

A former product description writer, who wished to remain anonymous due to ongoing job prospects, was drawn to work at Backcountry in the late 2010s because of its reputation as an edgier brand. Employees had two days a week to work from home, even before the pandemic hit, and were encouraged to find time to ski. But this employee remembers executive level changes that left the company somewhat directionless; one executive would want humorous copy toned down, another would revere course six months later.

“It’s a pretty watered-down brand,” they said. “It used to be funny and lighthearted and speaking to the real experience of people who love the outdoors. It’s like any other brand now.”

Despite the swings in sentiment, the company continued to look to gain awareness and market share with a broader audience. It kept pushing its private label brands, including an attempt at wholesale. In 2021, Backcountry opened its first trial store below its headquarters in Park City, Utah. By 2023, it had nine locations, including a large two-story corner spot in The Grove in Los Angeles.

While the company did not respond to questions about store performance, some speculate that expensive leases may have also played a role in driving the business to sale.

“In the race to get all this money and funding and get bigger and bigger, you kind of risk losing what you are,” the former employee said.