The industry will continue growing as Americans are increasingly health-conscious
New York, NY (PRWEB) November 02, 2014
The Athletic Shoe Stores industry rebounded strongly from recessionary challenges over the five years to 2014. When the recession hit, Americans' financial confidence fell apart, causing many to hold off on discretionary purchases, including athletic shoes. Price discounts further depressed revenue despite driving a higher volume of sales. However, when the economy began to improve in 2010, people who previously held off on athletic shoe purchases proceeded to buy, with pent-up demand spurring a large increase in revenue during 2011. IBISWorld Economic Analyst Britanny Carter says in the updated report, “in addition, the public is becoming increasingly aware of the obesity epidemic in the United States, stirring up a wave of health-consciousness that has encouraged Americans to exercise and, therefore, buy athletic shoes.” Furthermore, increased athletic activity puts more wear and tear on athletic shoes, necessitating more frequent purchases to replace worn out footwear. As a result of these factors, IBISWorld estimates that revenue will grow during the five years to 2014. Revenue will rise about greatly in 2014 alone, as rising disposable incomes allow consumers to afford premium-priced shoes.
Profit expanded quickly and consistently during the past five years. At first, deep discounts to drive sales on athletic shoes during the recession squeezed profitability. Companies subsequently gained leverage to raise prices as consumers shifted their focus from price to quality in light of improving disposable income. Smaller companies that shut down due to unprofitable operations also allowed the high-profit major companies to gain a larger market share and contribute to expanding profitability. For example, Nike grew its market share and enjoyed a healthy profit margin throughout the past five years. Consequently, average Athletic Shoe Store industry profit is expected to expand from 2009 to 2014.
“The industry is expected to continue growing consistently as Americans are increasingly health-conscious and gain confidence in their financial stability, facilitating purchases of expensive, high-quality shoes,” says Carter in the updated report. However, the wave of new customers from the health-conscious movement will slowly plateau. Moreover, heightened competition from online retailers will limit growth. As a result, revenue growth is forecast to grow greatly in the next five years.
For more information, visit IBISWorld’s Athletic Shoe Stores in the US industry report page.
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IBISWorld industry Report Key Topics
This industry includes retailers that primarily sell athletic shoes, such as running shoes, basketball shoes and sneakers; these stores may also sell apparel. Stores that primarily sell specialty sports footwear, such as golf shoes, bowling shoes and spiked shoes, are included as part of the Sporting Goods Stores industry (IBISWorld report 45111). Used goods and online sales are also excluded from this industry.
Key External Drivers
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Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
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