Fitness and Athletic Clothing Stores in Australia Industry Market Research Report Now Available from IBISWorld

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Over the past five years, fitness and athletic clothing stores have been affected by poor consumer sentiment, lower discretionary incomes and increased competition from discount department stores and overseas online retailers. As the consumer environment improves over the next five years, traditional retailers are expected to try to return to growth by moving into the online space or specializing in high-quality products. For these reasons, industry research firm IBISWorld has added a report on the Fitness and Athletic Clothing Stores industry in Australia to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Retailers suffer due to rising competition and declining discretionary spending

The Fitness and Athletic Clothing Stores industry has had to deal with the same circumstances that have been plaguing other clothing and footwear retailers over the past five years. A drop in consumer sentiment due to the global financial crisis has persisted and is only starting to ease up in 2012-13 as interest rate cuts and a lower debt burden allow consumers to be more comfortable with their discretionary income. “Furthermore, consumers have re-evaluated what products provide sufficient value,” according to IBISWorld industry analyst Craig Shulman. Persistent discounting activities during the global financial crisis, high awareness of the effect of the rise of the Chinese textile industries and the rise of online retail providing higher quality goods at significantly lower prices have all been strong reasons for this re-evaluation. IBISWorld estimates that industry revenue will decline at an annualised 2.2% over the five years through 2012-13. During 2012-13, revenue is expected to grow by 4.2% to $1.17 billion.
The Fitness and Athletic Clothing Stores industry is highly concentrated as it is dominated by four large companies: Super Retail Group Limited, RCG Corporation Limited, Foot Locker Australia Inc and Lorna Jane Pty Ltd. “The industry has been consolidating over the past five years,” says Shulman. Historically, the majority of fitness and athletic clothing stores were small, family-run businesses operating in local areas. However, the benefits of bulk purchasing, a nationally recognised brand and other synergies have allowed the big chains to gain a dominant foothold in the industry, which has affected the viability of smaller operators.
While the consumer environment is expected to ease up from 2012-13, how it will affect fitness and athletic clothing stores is still up in the air. As online retail continues to pervade the industry due to its strong value offering, traditional retailers are expected to finally get on board and complement their traditional offering with a strong online offering. This will be even more important as online shopping moves into the mobile space and increases its level of convenience. Industry product lines are substantially more limited than clothing and footwear overall. Those that stand to benefit the most are those that provide high-quality goods exclusively, which prevents as high a degree of online competition since many traditional retailers struggle with providing a major brand product at a price that is competitive to online retailers.

For more information, visit IBISWorld’s Fitness and Athletic Clothing Stores report in Australia industry page.

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IBISWorld industry Report Key Topics

Establishments in the industry sell sports-specific apparel designed to meet the performance and safety needs of athletes. Products sold in the industry range from shorts and tops to shoes and undergarments, and include sports style leisurewear and footwear.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

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Gavin Smith
IBISWorld
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