Rising consumer sentiment and disposable income will return the industry to growth.
New York, NY (PRWEB) April 07, 2014
During the past five years, the Sporting Goods Stores industry has contended with a decline in consumer leisure time. As consumers' leisure time is expected to decrease at an annualized rate of 0.9% during the five years to 2014, more individuals have struggled to incorporate sporting activities and fitness into their daily regimen, which has lowered demand for fitness apparel, footwear and other sporting goods. “Additionally, as per capita disposable income declined in 2010, more individuals purchased low-cost, low-quality industry products from globally based manufacturers, which curbed demand for private-label products and constrained industry revenue growth,” according to IBISWorld Industry Analyst Sarah Turk. Furthermore, competition has intensified due to department stores and mass merchandisers expanding their product portfolio to also include sporting goods. For example, mass merchandisers have used their large operations to secure low-cost, supply-side contracts with sporting goods manufacturers, which enabled them to offer lower prices for sporting goods.
“As consumers have became more aware of the health merits of participating in sports and fitness activities, many consumers have demanded sporting goods, which has slightly buoyed industry revenue,” says Turk. Nevertheless, during the five years to 2014, industry revenue is expected to decline at an annualized rate of 0.3% to $5.4 billion, due to the increasing prevalence of foreign-made, low-cost sporting goods, which have not generated sufficient sales volumes to counteract their marked-down prices. Despite this trend, industry revenue is expected to grow 0.8% in 2014, as rising per capita disposable income, coupled with more health-conscious consumers, stimulates demand for athletic products.
During the next five years, industry revenue is expected to grow, as strong consumer demand for gym, health and fitness clubs signifies more health-conscious individuals, who will require sporting goods for their fitness and sporting activities.
For more information, visit IBISWorld’s Sporting Goods Stores in Canada industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld.
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189.
IBISWorld industry Report Key Topics
This industry retails new sporting goods, including bicycles, camping equipment, exercise and fitness equipment, apparel, footwear and other sporting goods and accessories. Products are sourced from sporting goods manufacturers and wholesalers and then sold to the general public via retail stores. Department stores, mass merchants and retailers that exclusively sell apparel are not included in this industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized 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 US and Canadian 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 Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.