Sporting goods retailer

A sporting goods retailer or sporting goods store is a retail businesses selling sporting and recreational goods, including sportswear, sporting equipment and related general merchandise.[1][2]

History

Decathlon, the world's largest sporting good retail chain,[3][4] opened its first store in Lille, France, in 1976.[5] It now has about 1700 stores in 60 countries and territories.[6]

The sector contracted globally in 2007 and 2008, due to the loss of disposable income during the Global Financial Crisis.[2]

The sector contacted again in 2020, outside China, due to restrictions on outdoor and team sports during the COVID-19 pandemic. Many brands, retailers, and manufacturers failed to return a profit, and many households reduced physical activity due to reduced disposable income. However, demand for sportwear and indoor fitness equipment remained high.[2] The sector experienced significant growth in the immediate aftermath of the pandemic.[7]

In 2021, McKinsey & Company identified a shift away from conventional bricks and mortar retail to online shops requiring more agile supply chains and experiential retail offering unique experiences.[2] In the United States, Dick's Sporting Goods began trialling concept stores with specialties, or in-store experiences like golf putting green, wellness experts, yoga classes, rock climbing, batting cages, and equipment repair services.[8][9]

In the same report, McKinsey & Company also identified a strong market for sportswear, which was becoming both more lucrative and more competitive. This was partly due to the blurring of lines between active wear and casual wear.[2]

Also in 2021, Mintel has identified three potential growth areas: women's sporting goods; men's sportswear; and the marketing of premium brands, particularly to parents.[7]

In 2022, research in the United States found consumers were planning to spend less at sporting goods retailers due to rising costs of living and other prices.[10]

By market

United States

In the United States, Walmart and Dick's Sporting Goods are the largest sporting goods retailers. Walmart recorded $9.8 billion in sporting goods revenue in 2015; Dick's recorded $6.9 billion in revenue.[11]

China

In China, the sector expanded at an average rate of 16.5% a year from 2015 to 2019. The sector continued to grow in the Chinese market during the COVID-19 pandemic, due to increased physical activity by the country's growing middle class.[2]

References

See also

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