You could argue that the sporting goods industry has been struggling since the collapse of Sports Authority in 2016.
At the time, analysts noted that the field had always been highly competitive.
“The pressures on the sporting goods industry are no different than they have been in the past,” Telsey Advisory Group analyst Joseph Feldman told CBS News, adding that competition from online retailers is particularly fierce.
In the years since, major area businesses including Modell’s, Bob’s Stores and Olympia Sports have closed.
Analysts still see opportunities in the space but acknowledge the challenges it faces.
“While the year ahead will be filled with uncertainty, it will also bring opportunity,” McKinsey partner Alexander Thiel said in a statement to Retail Dive.
“As the global population continues to grow and more people adopt healthier, more active lifestyles, there are opportunities for brands, retailers and manufacturers to grow,” he added. “But this potential should be contrasted with the ongoing political and economic unpredictability that is playing out in nearly every region around the world.”
It’s a challenging market and one of the biggest players, the Big Five sporting goods companies, has been steadily closing stores.
“The sporting goods retail market is highly fragmented and highly competitive… Some of our competitors have more stores and stronger e-commerce capabilities… If our competitors lower their prices, we may have difficulty maintaining market share without lowering prices, which may affect our profits,” the Big Five said in a filing with the Securities and Exchange Commission.
The company didn’t mention Dick’s Sporting Goods and Amazon by name, but explicitly mentioned them in its 10-K risk factor filing.
The company added: “While e-commerce has been a rapidly growing sales channel and a source of increasing competition in the retail industry, sales through e-commerce channels are not material to our operations. If we are unable to successfully compete, our operating results may suffer.”
The chain, which is in the process of being taken private, has been quietly and steadily shrinking its retail footprint.
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Some Top 5 Sporting Goods Stores in Colorado According to 9news.com, some stores are about to close, with specific stores expected to close in the coming weeks.
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In the Denver area, three specific Big 5 stores, such as those on Iliff Avenue, S. Colorado Blvd. and Wheat Ridge, are reportedly closed, including Clearance sale underwayadding, “Cheap a mile high.”
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A Big 5 store City of Pocatello, Idaho confirms permanent closuresharing East Idaho news.
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5 giants in Garden City, Idaho also plans to close By the end of the year, the Idaho Statesman reported.
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In northern Colorado, the Big Five Fort Collins has announced final days Sporting goods retailers face broader challenges, K99: New Country in Northern Colorado reports.
Sporting goods stores are in a tough spot.Shutterstock
