Sporting & Recreational Equipment Retail Industry Trends

Changing Tastes

A National Sporting Goods Association (NSGA) sports participation survey shows that the popularity of various sports has changed in the last decade: camping, golf, rollerblading, and mountain biking have increased, while tennis and skiing have decreased. Among teenagers, participation in baseball and softball, bicycling, ice hockey, and tennis has dropped, and increased in fishing, golf, rollerblading, skate boarding, and snowboarding.

Demographic Trends

Changing tastes in sports and strong sales of sporting goods in recent years partly reflect the changing composition of the US population. In particular, the number of older (and more affluent) people has increased rapidly in the past decade. As people age, they participate less in vigorous sports like running, basketball, and tennis, and more in relaxed sports like camping, fishing, and golf. For example, 16 percent of 18 to 34 year olds are runners, versus 10 percent of those 35 to 54, and 4 percent of those over 55, according to the NSGA. Females are a key segment in the sporting goods market, accounting for a majority of sports apparel purchases and a rise in participation in organized school sports. The youth sports population (5 to 19) is expected to grow just 1 percent from 2000 to 2010.

Multiple Strategies

Strong demand for sporting goods in the past decade allowed many sporting goods retailers to expand operations, using different strategies. Large-format retailers like Sports Authority and Decathlon followed a strategy of entering large new markets with multiple stores, benefiting from shared marketing and distribution. Smaller retailers like Hibbett have followed a strategy of serving midsized markets, avoiding competition from the large-format companies. Companies like Gart have grown by acquiring other retailers.

Catalog Sales

Every year in first quarter, mail order and sporting goods makers' catalogs are mailed to potential customers. Many sporting goods catalogs have only 25 to 75 pages, but some, including the "master" catalogs published by Cabela's and Bass Pro Shops, have 350 to 400. Many fishers and hunters prefer to buy equipment locally, but mail order firms like Cabela's and Bass Pro have huge selections that few local stores can rival.