Global Sporting Goods & Hobbies Stores Industry
The global sporting goods store industry has witnessed changes over the past 20-year period, reports IBIS World. Leading industry players have grown into national chains, with large-scale operations seeing increased buying power. Following the rising number of national sporting chains, mass merchandisers and department stores have entered the market. Sporting goods retailers have continued to remain competitive despite the growing number of rivals for market share due to the specialized services and leading brands they make available to customers.
The world hobby store industry is fuelled by consumer spending; though the economic recession dragged down consumer confidence, which had a negative impact on consumer spending, the industry is set to benefit from continued economic recovery. A growing consumer base comprised of women over the age of 35 is also driving market growth.
Companies use merchandising to attract new consumers and encourage store footfalls from both new and existing customers. The larger the operation, the larger the selection of products a company can offer and the better the discounts. Smaller outfits remain competitive through customer service, effectively serving a local market and providing a range of specialized goods. Hobby stores also promote themselves by offering classes and picture framing. Among the types of products sold to the general public through hobby stores are hobby kits, traditional toys, board games, electronic toys such as video and electronic games, and craft supplies, reports IBIS World.
Regional Market Share
- The US sporting goods store industry have benefited over the past five-year period from growing concern over health issues such as obesity and diabetes. Consumers are increasingly aware of the risks involved in a sedentary lifestyle. This has lead to rising demand for sporting goods as consumers try to get fit and maintain healthy, active lifestyles. IBIS World estimates the US sporting goods stores industry recorded close to 1% yearly growth between 2007 and 2012.
- Sporting goods stores operating in the US have had to deal with more intense competition from mass merchandisers and department stores. Sales are predicted to rise again, and the industry is set to record 3% expansion to reach a value of almost $40 billion in 2012. The trend away from a traditional model where stores were family-owned and catered to local communities continues to shift toward companies with a strong national presence. In the traditional model, merchandise was mainly supplied by wholesalers, and operators enjoyed a far lower level of competition as other stores tended not to stock specialized products. Over the past 20 years, the changing landscape of the US sporting goods industry has seen competition for market share become more intense and a considerable rise in buying power.
- The US arts and crafts store industry is expected to reach a value of $40 billion by 2015, according to research from Global Industry Analysts. Though the US and the UK have long dominated the global fine arts market, China’s profile in the global fine arts auction market began to dominate thanks to the country’s strong economy. China’s fine arts industry has risen to new heights, attracting art collectors from all over the world. Chinese artists featured in the leading 10 global artists according to auction revenue, and the country represented the largest fine-arts auction market in the world in 2010. Hong Kong is also set to become a top destination for leading auction houses to locate over the coming years, and should become a region that will be popular with artists, galleries, collectors and art fairs.
- There are around 9,000 stores operating in the US toy and hobby store industry, according to research from Hoover’s. These stores generate combined yearly revenue of around $20 billion. The market is characterized by a high level of concentration, with the 50 leading companies accounting for 85% of overall revenue.
Industry Leaders
- Leading players currently operating in the global sporting goods store industry include Foot Locker, Dick’s Sporting Goods, Decathlon, Hibbett, Scheels and The Sports Authority. Leading names in the US toy and hobby store industry include AC Moore Arts & Crafts, Michaels Stores and Toys "R" Us.
Market Outlook
Due to their ability to offer consumers a higher level of convenience along with lower priced goods, department stores and mass merchandisers continue to encroach on independent hobby and toy store market share, reports IBIS World. Future trends include rising demand for adult-focused toys, such as electronics and media players, geared for children. Rising demand from baby boomers along with rising levels of disposable income and a greater number of discretionary purchases will fuel market growth.
The global sporting goods store industry witnessed a dip in demand due to the economic recession, but is set to recover as levels of disposable income and consumer confidence grows. Market growth is expected to drive revenue through 2017, according to IBIS World.
Leading Industry Associations
More »
