Sporting Goods Stores
Competitive Landscape
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 highly experienced staff, offering repair services, or by serving a local market. The industry is labor-intensive: average annual revenue per employee is about $145,000.
Opportunities
More Apparel, Accessories - For some retailers, sports apparel is the best-selling product, ahead of athletic shoes and sports equipment. Many consumers wish to project an athletic image, even...
Business Challenges
Dependence on Consumer Income - The revenue of sporting goods stores is sensitive to the health of the economy, as sports are leisure activities for most participants. Spending on sporting...