The Sports Goods Stores industry is set to benefit from increased participation in sports and fitness activities, increasing consumer spending, and rising per capita disposable income. Meanwhile, the industry will face intense competition from department stores and mass merchandisers. Its profit margin is expected to expand due to overall growth in the wake of COVID-19, which will help to boost industry sales. Read on for more industry insights. What’s Next For the Sporting Goods Stores Industry?
Market share of sporting goods stores in the United States
The Sporting Goods Stores industry is broken down by state to identify areas with high industry market share. The industry’s growth and sales are affected by several factors, including demand, supply, and cost of goods. Higher competition will lead to downward pressure on prices. You can find out which state has a higher market share by looking at the industry’s price changes over the last three years. You can also find the number of employees working at a specific company.
In the United States, sports retail is experiencing robust growth thanks to the pandemic. After years of declining market share, the COVID-19 pandemic is expected to cause a major shift in the industry. The biggest challenges include increased competition among sporting goods stores, the COVID-19 pandemic, and the rise of team sports. However, the industry is also experiencing some uptake driven by health-conscious consumers.
Sales of sporting goods is projected to increase significantly in the United States. While 2020 is expected to be a challenging year, the sector is expected to reach a revenue of over 40 billion dollars by 2025. Despite the upcoming coronavirus pandemic, the market is still expected to grow by an impressive 7.6% annually. Further, it is projected that the United States will have the largest sporting goods market in the world by 2025.
Approximately twenty thousand sporting goods retail companies operate in the United States. These companies generate an annual combined revenue of $25 billion. Many of them operate a single retail location. Large format sporting goods stores, or “Big Box” stores, operate at a high level of volume, with hundreds of employees. Smaller-scale sporting goods retail stores are smaller, typically between 5,000 and 20,000 square feet and carry limited products. Traditional sporting goods retail stores are generally found in enclosed shopping malls and strip centers. Those companies with five or more stores represent a third of the market.
There are many ways to increase sales of sporting goods. Mass merchandisers offer a broad range of merchandise, while catalog retailers and Internet stores offer more specific niches. Small local sporting goods stores are able to compete with these large competitors by offering better service or specializing in one particular sport. However, because sports equipment is so technical, a knowledgeable staff is essential to succeed. Many companies also recruit and train their employees to be familiar with different brands and types of products.
The global sporting goods market is a multi-billion dollar industry, and is projected to reach 53 billion U.S. dollars in 2020. The largest companies are Nike, Adidas, Puma, and Under Armour, as well as a number of other manufacturers. As the market for sporting goods continues to grow, the companies that dominate this industry are positioned to benefit from the growth in the sector.
Trends shaping the industry in 2021 and beyond
The sporting goods industry is experiencing unprecedented growth, thanks to the pandemic that hit the country in March 2020. Increased participation in sports and health consciousness are fueling rising consumer spending and per capita disposable income. However, the industry must contend with fierce competition from department stores and mass merchandisers. As a result, the overall growth rate of the industry is forecast to increase by X% a year by 2021.
Fashionable, affordable athletic wear is becoming more sophisticated. Despite growing competition from fast-fashion clothing, a number of retailers have jumped on the bandwagon. For example, high-end retailers like H&M and Zara have launched athletic lines with sizing ranging from XS to 4X. In addition, “smart” athletic clothing is becoming increasingly popular, tracking health indicators and promoting a healthy lifestyle. In addition, consumers are increasingly paying attention to materials used in production.
While the industry will be largely unchanged in the coming years, the forecast for the next five years includes some worrying developments. The world economy is still suffering from the impact of the financial crisis, and the sporting goods industry is expected to shrink by seven percent by 2021. However, this will be offset by an increase in consumer spending, especially among consumers who are hesitant to spend money. In the meantime, brands and retailers should not overextend themselves. If they do, they may end up losing money in the long run.
The environmental movement has penetrated the sportswear industry. Fashion brands are investing heavily in eco-friendly apparel. They promote recycled garments and organic cotton to produce their apparel. Similarly, German athletic brand Ethletic is using recycled plastics and organic cotton for its athletic clothing. Adidas, meanwhile, has begun experimenting with renewable textiles. Its prototype trainers are made of silk, Biosteel fibre, and biodegradable polymers.
During the pandemic, consumers were cautious about going into stores to purchase sporting goods. As a result, retailers began to limit the number of orders they could fulfill. This led to production delays, which will negatively impact holiday sales. Meanwhile, independent brands looked for other ways to gain market share. Despite this, 33% of sportswear brands will focus on influencer marketing in 2021 and beyond.
A major shift in consumer behavior has also shifted the sporting goods industry’s focus from traditional sports apparel to more eco-friendly products. The COVID-19 pandemic has caused an increased awareness of sustainable products. Companies must ensure their supply chains are sustainable and engage with circularity concepts. In addition, more consumers are pursuing a healthier lifestyle. The sporting goods industry must work together with stakeholders to meet these challenges.
Consumers are demanding more authenticity and transparency from their favorite athletes. Digital platforms have given athletes the opportunity to express more personality through their social media accounts. Fans want more interaction and connection with their favorite players, and athletes must cater to this demand. A digital fashion house like The Fabricant, for example, has created an exclusive digital dress for $9,500, which users could wear and share in virtual environments. Similarly, brands are now developing collections for gaming platforms. In Roblox, gamers can purchase Gucci sneakers or play sports in Nikeland.
Opportunities for growth
The year ahead promises to be a challenging one for the sport retail sector, but industry executives remain cautiously optimistic. The majority of respondents expect better market conditions in the coming year, with the biggest challenges being COVID-19 issues, physical inactivity, and team sports. Opportunities, however, include the Olympic Games, Paralympic Games, and outdoor sports. Here are some trends to watch for in 2021. In particular, a multi-stakeholder approach is crucial to success.
Growing consumer incomes and rising participation in sport are key drivers of growth. These trends are also expected to help fuel industry revenue. However, the market will face intensifying competition from department stores and mass merchandisers. The report identifies eight key themes for the industry, which will require players to align their businesses with these shifting dynamics. The key themes are consumer shifts, the digital leap, and industry disruption. In short, these trends will shape the sporting goods industry in the coming years.
In addition to growth opportunities, the industry is also susceptible to unforeseen risks. The recent pandemic of COVID-19 has disrupted outdoor sports, as well as extensive athletic training and leisure activities. As a result, the industry is experiencing rapid change and is faced with the challenge of keeping pace with consumer demands. To survive and thrive in this environment, industry players need to stay ahead of the changes and develop offerings that cater to consumer needs.
The global sporting goods market is comprised of two segments: sports and hobbies. Hobby and music-related products are also part of the industry. Many entities in the market retail different books and toys, athletic uniforms, camping equipment, specialty sports footwear, and musical instruments. A few companies also offer repair services for sporting equipment. These trends can help you understand the global market and make the right decisions to grow your business. But what about the niches that are currently untapped?
The overall market for sporting goods in Europe is expected to be worth approximately USD 45 billion annually by 2025. The report evaluates the main drivers of growth in this market. The forecast is based on historical trends, growth drivers, and company profiles. In addition to the industry outlook, the report includes a list of key companies, their business strategies, and financial overviews. With a comprehensive market overview, this report identifies the key opportunities and challenges facing companies in the sport goods industry.
The Dominican Republic’s recent rise in health consciousness has led to an increased demand for fitness equipment and sports apparel. The country is also growing as a fitness hub, with more people turning to exercise as part of their daily lives. Sales of soccer equipment and yoga equipment are particularly strong, while the market has experienced significant growth in boutique gyms and fitness-oriented franchises. But the overall market for sporting goods in the Dominican Republic remains small.