A Decline from Pandemic High Point The pandemic

Transcript:A Decline from Pandemic High Point The pandemic:
A Decline from Pandemic High Point The pandemic energized the sporting goods market as more people addressed their health & fitness needs and found solace being outside. Sales at “sporting goods stores” (NAICS 45111) increased 17.2% from 2019 to 2020 and 22.3% from 2020 to 2021. Consumers can only buy so much sporting goods, however, and inflation led to the market losing its energy as “sporting goods stores” sales from 2021 to 2022 decreased 1.2% and sales were flat during the first six months of 2023 compared to 2022. Sporting goods are often holiday gifts but Q4 2022 sales at “sporting goods stores” decreased 1.0% YOY. Inflation, depletion of discretionary spending dollars and increasing credit card balances may negatively affect Q4 2023 sporting goods sales. Sales Success in Selected Product Categories According to analysis from Circana, consumers have switched from buying large outdoor gear, such as kayaks, during the early pandemic period to purchasing more camping and similar outdoor equipment, such as backpacks, and travel-related items. While sales for the overall US outdoor industry decreased 1% for the 12 months ending April 2023, apparel sales in the category increased 2% and accessories increased 4%, respectively, during the same period. The increasing popularity of racquet sports, especially pickleball, led to a 15% increase in tennis apparel sales and a 21% increase in tennis shoe sales for the 12 months ending June 2023. Pickleball paddle and ball sales totaled $304.2 million during the same period. Retail Visitation Trends Hibbert Sports recorded YOY increases in-store visits during January at 3.1%, February at 7.0% and March at 0.8% while DICK’s Sporting Goods’ visits decreased 3.0%, 8.0% and 10.9%, respectively. With Q2 sales at “sporting goods stores” flat, April, May and June visits to both retailers decreased: Hibbert Sports 5.0%, 1.7% and 1.1%, respectively, and DICK’s 12.0%, 13.7% and 6.1%, respectively, but improving for both during the quarter. Spotlighting individual stores in the Atlanta market, Placer.ai found 65.3% of family households visited Hibbert Sports compared to 54.9% visiting DICK’s; however, DICK’s visitors had a higher median household income at $62.7K than Hibbert at $57.7K. Consumer Insights Consumer survey results from Provoke Insights’ Spring/Summer 2023 Retail Consumer Trends Report mirror many other surveys that 54% of consumers are shopping at discount stores more, 53% are using coupons more and 50% are tracking their spending. Outdoor gear and fitness gear were 10th and 11th on a list