First Research US Industry Profile

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Sporting Goods Stores
SIC Codes: 5941
NAICS Codes: 45111
Last Quarterly Update: 5/30/2022
Companies in this industry operate physical retail stores specializing in sporting goods, athletic and fitness wear, fitness equipment, and related products. Major companies include Bass Pro Shops, Big 5 Sporting Goods, Cabela's, Dick's Sporting Goods, Hibbett Sports, and REI Co-op (all based in the US), as well as Canadian Tire (Canada), Decathlon and Groupe GO Sport (both based in France), and Sport Direct International (UK).
The global retail market for sporting goods is forecast to reach about $200 billion by 2024, according to Statista. The US is the key market in the sports apparel and footwear industry, accounting for over 30% of the market. Developing regions such as Asia/Pacific, Central and Eastern Europe, the Middle East, and Latin America are expected to see more rapid growth.
The US retail sporting goods industry includes more than 20,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $45 billion.
Competitive Landscape
Sporting goods retail has faced significant disruption in recent years. Many chains including City Sports, Sports Authority, Sports Chalet, MC Sports, and most recently family-owned Modell's Sporting Goods have gone out of business. While the full extent of the damage to the industry from the economic shutdown due to COVID-19 remains to be seen, demand for sporting goods plummeted as retailers closed up shop. Small- and medium-sized operators, especially those without a significant online presence, are especially vulnerable to the economic effects of the pandemic.
Migration to online shopping has been a key factor in several recent bankruptcy filings and asset sales by sporting goods chains. As a result, the retail arena for sporting goods stores is becoming increasingly concentrated, with Dick's Sporting Goods emerging as the clear leader. Dick's has acquired store leases, customer databases, and intellectual property from its former rivals.
Sporting goods stores also must compete with warehouse clubs, discount stores, and department stores; specialized apparel and footwear retailers; pro shops; and online retailers. Fierce competition from online-only and omnichannel retailers, specialty stores like Lululemon and Athleta, and mass merchandisers like Walmart and Target puts pressure on margins at national chains that sell a broad assortment of sporting goods. Online sales of sporting goods totaled about $20 billion in 2019, up from about $15 billion in 2016, according to Statista.
Demand is driven by population demographics and consumer income. The profitability of individual companies depends on merchandising and marketing skills. Large chains have an advantage in stocking a wide variety of goods. Small companies and specialty retailers can compete successfully by carrying a deeper product line in specialized sports, hiring knowledgeable staff, offering repair services, or by serving a local market. The US industry is concentrated: the 50 largest companies account for about 60% of revenue.
Products, Operations & Technology
Sports equipment accounts for 70% of industry revenue; clothing, 20%; and footwear, 10%. Major equipment categories include team sports, exercise, hunting ... plus:
Sales & Marketing
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Finance & Regulation
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Regional & International Issues
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Human Resources
Also includes the following chapters:
Quarterly Industry Update
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Industry Indicators
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Business Challenges
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Trends and Opportunities
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Call Preparation Questions
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Financial Information
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Industry Forecast
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Industry Websites
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Glossary of Acronyms

Historical Profiles (PDF format)

04/04/2022
11/29/2021
09/13/2021
06/21/2021
03/15/2021
01/04/2021
11/30/2020
10/19/2020
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04/20/2020
09/16/2019
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03/27/2017
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