Sporting chance: Industry operators have had to reduce prices in order to remain competitive

Operators in the Sporting and Outdoor Equipment Retailers industry sell products geared towards outdoor activities, including clothing, bicycles, sporting goods and camping and fishing equipment. Most of the items stocked by operators are discretionary goods. Improving economic conditions and rising disposable incomes fuelled revenue growth in the beginning of the past five-year period. However, since the EU referendum, uncertainty has led to consumer confidence falling, while inflationary pressures have constrained disposable incomes. This has meant that consumers are budgeting more and cutting back on their expenditure on discretionary goods, limiting industry revenue growth. Over the five years through 2019-20, industry revenue is expected to increase at a compound annual rate of...read more.

Industry Statistics & Market Size
Revenue
£9.8bn
Annual Growth 15-20
4.5%
Forecast Growth 20-25
Profit
Employment
76,610
Businesses
5,310

Industry Threats & Opportunities

  • The industry has faced increasing external competition over the past five-year period
  • The industry has faced increasing competition from external operators such as clothing retailers
  • Government initiatives to keep people active are likely to continue supporting demand
  • Industry Report - Industry Investment Chapter

    The Sporting and Outdoor Equipment Retailers industry has a moderate level of capital intensity. Using depreciation as a proxy for capital and wages as a proxy for labour, IBISWorld estimates the industry to have a capital-to-labour ratio of 1:4.47. This indicates that for every £1.00 spent on capital, operators typically spend £4.47 on labour. Employees are needed to offer in-store service, advise customers, perform administrative tasks and stock the shop floor. The technicality of some of the products sold requires staff members with specialist knowledge. Retailers such as Sports Direct have begun to create specific areas on the shop floor dedicated to the different sports and have employees well versed in that sport. Hea...purchase to read more.

    Additional Insights for the Sporting and Outdoor Equipment Retailers Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Sporting and Outdoor Equipment Retailers Industry are

  • Access to niche markets
  • Having a high profile in the market
  • Having a wide and expanding product range
  • IBISWorld analysts also discuss how external factors such as Health consciousness and Demand from department stores in the Sporting and Outdoor Equipment Retailers industry impact industry performance..

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    What's in this report

    What is the Sporting and Outdoor Equipment Retailers Industry?

    Retailers in this industry sell a wide variety of products geared towards outdoor recreation, including sporting goods, sports clothing, camping equipment, bicycles and fishing equipment. The industry includes high-street retailers with online operations but excludes pure-play online retailers.

    Industry Products
  • Sporting goods
  • Bicycles
  • Fishing equipment
  • Camping and hiking equipment
  • Boats
  • Athletic clothing and footwear
  • Industry Activities
  • Sporting goods and sportswear retailing
  • Bicycle retailing
  • Fishing equipment retailing
  • Camping equipment retailing
  • Boat retailing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Health consciousness
  • Demand from department stores
  • Sport participation
  • Average weekly hours of work
  • Level of annual rainfall
  • National minimum wage

  • Current Performance
  • Sporting competitions
  • Healthy initiatives
  • Intense competition
  • Fighting back
  • Currency concerns
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Persistent problems
  • Rising obesity
  • Expanding markets
  • Technology and partnerships
  • Market structure and profit
  • Table: Sporting and Outdoor Equipment Retailers Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Sporting and Outdoor Equipment Retailers Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Sports Clubs
  • Consumers

  • Key Selling Industries
  • Clothing & Footwear Wholesaling
  • Non-Specialised Wholesale Trade
  • Other Transport Equipment

  • Products & Services
  • Athletic clothing and footwear
  • Bicycles
  • Sporting goods
  • Camping and hiking equipment
  • Fishing equipment
  • Boats
  • Chart: Sporting and Outdoor Equipment Retailers Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Households with children
  • Other households
  • Other markets
  • Chart: Major Market Segmentation for the Sporting and Outdoor Equipment Retailers Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesPurchases represent the largest expense for the industry, accounting for an estimated 57.9% of industry revenue. Purchase costs tend to fluctuate due to the seasonal nature of the industry. The majority of retailers purchase goods from wholesalers, although some retailers are able to by-pass the intermediary and source goods directly from the manufacturer. Retailers that own brands are also able to save purchasing costs as supply chain steps are reduced. Those who purchase merchandise from abroad are subject to exchange rate fluctuations. The depreciation of the pound following the referendum result is expected to have resulted in the revenue attributed to this segment increasing over recent years. The weak pound has increased the cost of importing goods from abroad, therefore raising purchase costs. DepreciationMarketingRentOther
  • Chart: Cost Structure Benchmarking – Sector vs Sporting and Outdoor Equipment Retailers

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Sporting and Outdoor Equipment Retailers Industry

  • Industry Globalization
    JD Sports Fashion plc, Sports Direct International plc,
  • Table: JD Sports Fashion plc - financial performance
  • Table: Sports Direct International plc - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Sporting and Outdoor Equipment Retailers Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Sporting and Outdoor Equipment Retailers Industry
    Includes:
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Marketing (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Discretionary Spending
  • Expenditure on products after taxes, mandatory expenses and spending on necessary items have been accounted for.
  • E-Commerce
  • Sales of products and services made via the internet.
  • Point-Of-Sale Data
  • A system used at checkouts in retail stores. The system uses computers and cash registers to capture transaction data at the time and place of sale.
  • Pure-Play Retailer
  • An online retailer that only sells over the internet without a physical high-street presence.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Sporting and Outdoor Equipment Retailers market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Sporting and Outdoor Equipment Retailers:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Sporting and Outdoor Equipment Retailers market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Sporting and Outdoor Equipment Retailers, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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