Knife Retailing In 2020:
A Sharp Investment

Firearms sales set records in many states this year, but more than guns are flying out the door of outdoor retailers. Knife sales have also been brisk.

Three retailers — the largest physical showplace, a top online seller and a family-owned shop — share why knives are a sharp investment.

Joshua Hill of Smoky Mountain Knife Works in Sevierville, Tenn., a store with the motto “If it cuts, we carry it,” said 2020 sales are big.

“We’re merely trying to fill our shelves and racks at this time,” Hill shared.

The store, with 108,000 square feet of retail space, most of it dedicated to cutlery, is located at the Tennessee front door of Great Smoky Mountains National Park. Park visitors amplify foot traffic. Hill said more than 1.5 million people visit the store annually. Millions more receive monthly print catalogs. Customers can also shop online at smkw.com. Orders are filled daily from Smoky Mountain Knife Works’ distribution center in neighboring Dandridge, Tenn.

KnifeCenter, (knifecenter.com) headquartered in Fredericksburg, Va., is a volume online retailer. It opened in 1995, just as people were figuring out how to manage business over the internet.

Howard Korn is KnifeCenter’s founder and president. Business picked up dramatically as many traditional sporting goods stores closed during the spring. While Korn is uncertain of how many knife transactions occur online, he wagers it’s well over 50% — especially during this year of coronavirus.

Puglia’s Sporting Goods (pugliasnola.com) in Metairie, La., is a few blocks away from Lake Pontchartrain. A family-owned business for more than 40 years, Puglia’s has successfully adapted to a marketplace loaded with big-box retailers and online sellers. To help keep prices competitive, they joined a national buying group, allowing them to buy directly from manufacturers of hunting and fishing gear, just like the big chains.

Manager Anthony Puglia saw knife sales peak this year, especially pocketknives.

“Years ago, I would only do one order a year on pocketknives. Now, I’m doing three or four orders every year. We need steady inventory flowing into the store,” he stated.

“It’s not like handguns. Knives offer a higher margin than guns and optics so why not keep a display case flat full of pocketknives? It increases sales.” Anthony Puglia, manager Puglia’s Sporting Goods Metairie, La.

Anthony Puglia, manager Puglia’s Sporting Goods Metairie, La.

KnifeCenter stays busy updating material on its sales site. “We have a professional photographer in-house to take photos that really showcase the product,” Korn shared.

In terms of actual in-store merchandising, Hill advises taking advantage of manufacturer packaging. “Most knife manufacturers do a great job of putting decent artwork on the boxes,” he provided. “Use it to your advantage for ‘curb appeal.’”

Hill also counsels keeping the selection fresh: “Don’t sit on old merchandise. Always bring in the latest and greatest.”

Puglia’s positions its knife collection away from other display cases, such as those for optics and handguns. Pocketknives get their own display. Puglia likes to give shoppers elbow room to examine the knives without people crowding them. The stock assortment ranges from high-end options to low price-point models, even small penknives and Swiss Army models sold from a bucket near the front counter. More than 120 models are typically displayed, with plenty of backup stock for the most popular ones.

“We make sure the lights are bright in our knife cases. The knives are organized on top of their boxes in an open position. Then, it’s a matter of keeping the glass clean. Keep as many fingerprints as possible off the glass,” Puglia advised.

Puglia contends knife sales, especially around Christmas, are often incidental to other shopping. Employees introduce knives as gifts.

“Some of these gift knives can be higher ticket items. The gift is personal, and the quality of the product reflects the relationship. Buying a well-made knife goes a long way,” he noted.

The rest of the year sees a steady stream of customers seeking replacement knives or checking out new models. It doesn’t cost much to keep your display case full of knives.

“It’s not like handguns. Knives offer a higher margin than guns and optics so why not keep a display case flat full of pocketknives? It increases sales,” Puglia said.

Function vs. Specs

At Puglia’s store, most customers key in on a knife’s functions and cosmetic features more than its technical specifications — such as the steel hardness ratings or composition of a handle or sheath.

“You’d think you’d get a lot of questions related to steel quality, ease of sharpening, but you really don’t,” he offered. “Those types of questions are more common with fishing knives than pocketknives or hunting knives.”

“Knife people certainly want that technical information,” Korn said, “but we hope it’s not too much ‘inside baseball.’ It can be a bit overwhelming for the average Joe.”

KnifeCenter’s sales pages have a comprehensive tutorial about knife construction and the technical aspects involved with steel ratings. Korn said keeping up with the new terminologies and technologies is a constant struggle: “We’re always working on our informational pages and videos.”

Hill also noted the incredible diversity of new alternatives when it comes to steel. New options arrive annually.

“All of these steels have advantages and disadvantages such as hardness, edge retention, ease of sharpening, etc. A diamond sharpener from Smith’s or DMT is a must with some of these newer steels and is an easy add-on sale with a new knife purchase over $100,” Hill informed.

Puglia agrees sharpeners are a great opportunity to enhance a sale.

“Today, more people are carrying pocketknives and, I guess, taking pride in their knives. They’re buying good sharpeners, such as some of the Work Sharp electric models. We sell a ton of those,” he confirmed. “In fact, we have a section dedicated just to knife sharpeners, everything from stones with oil, to things you can keep in your tackle box to electric models. We keep demo model sharpeners right next to the knife display case. People see the Work Sharp model there. We suggest they take out their pocketknife and we can show them how it works. Some of our customers sharpen their knives daily.”

Favorites

Spyderco, Benchmade and Kershaw are among KnifeCenter’s top-selling American brands, with Case and Swiss Army always popular. (Gerber, SOG, Buck, Cold Steel and Schrade also generate considerable sales.)

Smoky Mountain carries more than 200 brands, plus custom handmade pieces.

“We don’t specialize in any one style or brand of knife. However, we do focus on Case XX Traditional pocketknives quite a bit,” Hill relayed. “They’re proudly made in America and are the most collected knife on the market. This brand will keep customers coming back again and again as there is always something new in the line.”

“My grandpa always carried a Case knife wherever he went and most of our employees carry pocketknives,” Puglia noted. “It’s almost an extension of you, sort of like wearing a watch. Many men take pride in their watch, wearing the same brand for decades. It’s somewhat the same with a pocketknife. I think the idea of carrying a knife today is gaining more traction.”

“Most knife manufacturers do a great job of putting decent artwork on the boxes; Use it to your advantage for ‘curb appeal.’”

Joshua Hill, Showroom Manager Smoky Mountain Knife Works Sevierville, Tenn.

Swiss Army knives are popular with youngsters. “Every year, we sell through with Swiss and have to make multiple orders,” he said.
Benchmade and Kershaw are atop Puglia’s sales. Around the holidays, the store features knives from custom knife builder, Beaux Recatto of Lumberton, Miss.

Puglia finds multi-blade knives are not as popular as in years past. Some hunting knives offered up to three different tools, a drop-point blade, a gut hook with a skinning blade and a bone saw — all in one. Today, in Puglia’s store at least, buyers seem to go for a fixed blade with a drop-point tip and a gut hook. “They want one knife that can gut, skin or cape — all in one,” he said.

Tactical knives made by SOG, Kershaw, Gerber, Browning and Buck also fare well near New Orleans.

Hill said the most popular style of knife Smoky Mountain sells is an everyday carry folder with a pocket clip.

“There is a multitude of them in different shapes and sizes from Benchmade, Kershaw, Gerber, Hogue, SOG, Böker, Spyderco and many others. They’re the easiest to use, maintain and carry, and can tackle many tasks with only one-hand operation,” he shared.

“Hunting knives and fillet knives are very seasonal for us. The collectors’ market is hot year-round in traditional knives: Case, Böker, Schrade and Bear and Sons,” Hill added.

Vendor Relationships

Each retailer praised knife manufacturers.

According to Korn, many quality knife companies make their products in the U.S., which helps with distribution.
“Knock on wood, our supply chain is just fine. It really hasn’t been affected too much,” he posited. “We’re working full tilt to get product out every day. The manufacturers are skilled, creative people who produce great products.”

Hill credits Smoky Mountain’s relationships with its vendors to allow the store to regularly stage sales and host collectors’ events and survival classes.

Puglia said knife manufacturers aim to please both retailers and customers.

“It’s a relief for me. It’s almost like the knife manufacturers are asking me, ‘How can we work with you to make it easier for you to work with us?’ It’s almost like working with family — and I guess it’s not surprising since so many of them grew from a family business,” Puglia concluded.

Online Bonus: Local Opportunities

Fish-cleaning knives are a must in southern Louisiana and the Dexter Russell brand is extremely popular at Puglia’s.

“We carry everything from knives designed to clean a perch all the way up to yellowfin tuna, with at least 20 SKUs of Dexter Russell alone,” he confirmed.

They also honor tradition and carry four sizes of Rapala wooden-handle fillet knives.

Electric fillet knives are popular around New Orleans. Bubba Blade and American Angler lead Puglia’s sales.

“We do a lot of inshore fishing around here and a lot of electric knives go through the door. Heavy scaled redfish will wear out a fillet knife motor and getting through those scales with a handheld knife can be tough,” Puglia said.

Some customers are making their own industrial-strength electric knife by pairing a $34 serrated, 9″ Dexter Russell knife with a reciprocating saw. They remove the knife’s plastic handle, grind down the steel where the handle used to be and drill a couple holes to fit into reciprocating saws. They then use that single blade to clean those hefty redfish.

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