A Decline from Pandemic High Point The pandemic
Description: 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
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slide2. 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.<br>
slide3. 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.<br>
slide4. 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.<br>
slide5. 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 of 11 product categories that consumers said they would continue to “buy at the same rate” during the inflationary period, at 6% and 7% less, respectively, compared to the average for all 11 categories.
Outdoor gear and fitness gear were 2nd and 3rd on the same list that consumers said they “could easily cut spending” at +10% and +8%, respectively, compared to the average for all 11 categories.<br>
slide6. Outdoor Recreation Participation Remains Strong The sporting goods market received a boost from the 2.3% increase during 2022 of outdoor recreation participation, which totaled 158.1 million Americans ages 6 and older or 55% of the US population, according to the 2023 report from the Outdoor Foundation.
Of even greater significance, participation rates among African Americans (40.7%), Latinx Americans (56%), those in the LGBTQIA+ community (61%) and seniors (ages 55+) (35%) all increased, although ethnic/racial groups are still underrepresented.
Popular outdoor activities, such as camping, hiking, fishing and biking, all increased 22.9% from 2021 to 2022, although snowshoeing was the fastest-growing category. Participation in trap and skeet shooting and overnight backpacking decreased.<br>
slide7. Fitness Sector Shows Some Muscle Survey results from Provoke Insights’ Summer 2023 Health & Fitness Retail Consumer Trends showed 13% of respondents said they had purchased fitness gear during spring 2023 compared to 7.0% during fall 2023.
The report stated those who are significantly more likely to exercise consistently have household incomes of $100K+ (63%), are men (58%) and are Millennials (57%).
According to Placer.ai, monthly visits to gyms and health clubs increased through May 2023, even though January and February traditionally have the largest increases: January (+30.3%), February (+17.2%), March (+11.4%), April (+8.8%) and May (+7.8%).<br>
slide8. Advertising Strategies To maximize holiday foot traffic and spending, advertise/promote a series of special offers, discounts and shopping events during the entire holiday shopping period, from September into mid-December.
Consumers are less interested in large outdoor gear and more interested in camping gear, providing sporting goods retailers to create various bundles of gear at different price points so customers are fully equipped for an outdoor adventure.
With more seniors participating in outdoor activities and striving to be healthier, TV and radio are excellent media to reach much of this audience. Cross-promote with email marketing, social media, outdoor and direct mail.<br>
slide9. New Media Strategies Pickleball is hot! Invite customers who are pickleball players to share their tips, what equipment beginners should buy and the best places with lessons and courts, especially for older adults, on social media and provide those posting with a digital coupon.
With many consumers thinking they can easily cut spending for outdoor gear and fitness gear, use social media to emphasize the health benefits of these activities. Offer a discount with a qualifying purchase.
More Americans are fishing. Sporting goods stores can use social media and email marketing to promote the benefits of fishing for relaxation and as a family activity. Schedule some weekend shopping events featuring fishing gear and offer starter bundles.<br>
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.<br>
slide3. 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.<br>
slide4. 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.<br>
slide5. 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 of 11 product categories that consumers said they would continue to “buy at the same rate” during the inflationary period, at 6% and 7% less, respectively, compared to the average for all 11 categories.
Outdoor gear and fitness gear were 2nd and 3rd on the same list that consumers said they “could easily cut spending” at +10% and +8%, respectively, compared to the average for all 11 categories.<br>
slide6. Outdoor Recreation Participation Remains Strong The sporting goods market received a boost from the 2.3% increase during 2022 of outdoor recreation participation, which totaled 158.1 million Americans ages 6 and older or 55% of the US population, according to the 2023 report from the Outdoor Foundation.
Of even greater significance, participation rates among African Americans (40.7%), Latinx Americans (56%), those in the LGBTQIA+ community (61%) and seniors (ages 55+) (35%) all increased, although ethnic/racial groups are still underrepresented.
Popular outdoor activities, such as camping, hiking, fishing and biking, all increased 22.9% from 2021 to 2022, although snowshoeing was the fastest-growing category. Participation in trap and skeet shooting and overnight backpacking decreased.<br>
slide7. Fitness Sector Shows Some Muscle Survey results from Provoke Insights’ Summer 2023 Health & Fitness Retail Consumer Trends showed 13% of respondents said they had purchased fitness gear during spring 2023 compared to 7.0% during fall 2023.
The report stated those who are significantly more likely to exercise consistently have household incomes of $100K+ (63%), are men (58%) and are Millennials (57%).
According to Placer.ai, monthly visits to gyms and health clubs increased through May 2023, even though January and February traditionally have the largest increases: January (+30.3%), February (+17.2%), March (+11.4%), April (+8.8%) and May (+7.8%).<br>
slide8. Advertising Strategies To maximize holiday foot traffic and spending, advertise/promote a series of special offers, discounts and shopping events during the entire holiday shopping period, from September into mid-December.
Consumers are less interested in large outdoor gear and more interested in camping gear, providing sporting goods retailers to create various bundles of gear at different price points so customers are fully equipped for an outdoor adventure.
With more seniors participating in outdoor activities and striving to be healthier, TV and radio are excellent media to reach much of this audience. Cross-promote with email marketing, social media, outdoor and direct mail.<br>
slide9. New Media Strategies Pickleball is hot! Invite customers who are pickleball players to share their tips, what equipment beginners should buy and the best places with lessons and courts, especially for older adults, on social media and provide those posting with a digital coupon.
With many consumers thinking they can easily cut spending for outdoor gear and fitness gear, use social media to emphasize the health benefits of these activities. Offer a discount with a qualifying purchase.
More Americans are fishing. Sporting goods stores can use social media and email marketing to promote the benefits of fishing for relaxation and as a family activity. Schedule some weekend shopping events featuring fishing gear and offer starter bundles.<br>