US sport retailers hope for better 2010

According to the US Sporting Goods Manufacturers Association (SGMA) State of the Industry Report for 2010, the majority of members predict that 2010 will be a year of single-digit growth for the sports, fitness and recreation industry.
Sales are expected to increase between 2%-4.5% with athletic footwear, like running shoes, and fitness equipment, like treadmills, being the best-selling items in this category.

This follows a drop in retail sales in 2009. According to "The sporting goods market in 2010" consumer study conducted by the NSGA, the US retail sales of sporting goods dropped 3% in 2009 after a 1% drop in sales at the end of 2008. At the end of 2009 the value of US sports goods sales was estimated to be $50.7bn and it is expected to increase by 2% to $51.5 billion for 2010. Had it not been for the major growth in shooting sports equipment the drop in sales would have amounted to 4.5% for 2009 and 3.8% for 2008. This drop in spending is reflected by respondents in the SGMA study. Only 23% of 'core' sports participants in the SGMA survey plan to increase their sports spending in 2010 and nearly 20% said they plan to spend more on travelling to compete and play more sports. More than 13% said that they plan to rejoin a health club.

The 6.7% growth in running/jogging participating and 5.3% rise in cycling activities can be accounted for the inexpensive nature, ease of access and the fact that they are not dependent on club membership.

The SGMA report further says that as more retailers are marketing their private label items, strain is put on retailer-supplier relationships and more suppliers are relying on the internet to sell directly to consumers and manufacturers selling directly to consumers. The biggest concern for manufacturers is expected to be the acquisition of new technology, retail credit availability and lack of consumer confidence. The biggest concerns for manufacturers about the retail sector are consumer demand for value pricing, retailers reducing the number of vendor clients and the rise of at once order fulfilment.