Athletic Shoe Stores in the US Industry Market Research Report from IBISWorld Has Been Updated

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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. For these reasons, industry research firm IBISWorld has updated a report on the Athletic Shoe Stores industry in its growing industry report collection.

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The industry will continue growing as Americans are increasingly health-conscious

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.

Industry Performance
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Industry Life Cycle
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Market Share Concentration
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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 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.

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Gavin Smith
IBISWorld
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