The arena for sporting goods has changed, with players evolving into national chains
Los Angeles, CA (PRWEB) May 06, 2012
Sporting goods stores in the United States have been flexing their retail muscles over the five years to 2012. Driven by rising consumer awareness of good health and participation in sports, revenue is expected to increase at an average annual rate of 0.6% over the five years from 2007. Not all news has been good for the industry, though; increasing levels of competition from department stores and mass merchandisers have restrained growth, says IBISWorld industry analyst Dale Schmidt. In addition, a decline in disposable income during the recession has adversely affected industry sales. However, as consumer spending conditions rebound in 2012 with the general economic recovery, IBISWorld expects industry sales to also increase over the year. From 2011 to 2012, revenue is estimated to rise 3.0% to total $39.8 billion. Historically, sporting goods stores were small, family-owned businesses that serviced the needs of the local community. Wholesalers were the primary suppliers of merchandise, and operators had little or no competition from other retailers because of their high level of specialization. During the past two decades, the arena for sporting goods retailers has changed, with industry players evolving into national chains that have considerable buying power.
The Sporting Goods Stores industry's transformation has had its perils, Schmidt said. The rise in national sporting chain numbers has effectively created an opportunity for department stores and mass merchandisers to enter the market and aim for a share of the sporting pie. The entry of these external players has led to increased levels of competition in an already tightening retail market. As a result, industry operators have consolidated. Over the five years to 2012, the industry is expected to contract to 36,528 enterprises at an annualized rate of 1.4%. Despite the rise in competition, sporting goods retailers have continued to benefit from their ability to offer consumers specific brands, specialized service and extra services like rock climbing walls and putting greens to test out equipment before it is purchased.
In the five years to 2017, growth will return, stimulated by a recovery in consumer sentiment and increased disposable income. Additionally, as more Americans participate in sports, they become more inclined to purchase sporting equipment. Revenue is forecast to grow through 2017. The industry’s major players are Dick's Sporting Goods Inc., Foot Locker Inc. and The Sports Authority Inc. For more information, visit IBISWorld’s Sporting Goods Stores in the US industry report page.
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IBISWorld industry Report Key Topics
Sporting goods stores retail 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 retail 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
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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.