The top 70 integrated sporting goods retailer chains in the world accounted for nearly one-quarter of the total sporting goods market, which has been estimated by NPD Group at $278 billion. They totaled $62.1 billion in sales, helped by mergers, growth in expanding markets and foreign exchange rates.
The findings of our annual Sporting Goods Intelligence survey of the global retail market at the retail stage (see chart on the next page) are for integrated sports specialty store chains and do not include this time buying or franchising groups such as Intersport, Sport 2000 or The Athlete’s Foot or major discount chains like Wal-Mart. The figures are before VAT. On the other hand, we have posted separately the figures given by the two major international buying groups for the aggregate sales of their affiliated members after VAT (charged only in Europe), which show that they together had a share of 5.4 percent of the world market.
A major change at the top was noted as Foot Locker fell from the No. 1 position to No. 2, replaced by Décathlon of France. Décathlon’s sales got a boost from its ongoing growth in southern Europe (especially in Portugal), expansion into China and other emerging markets as well as the strength of the euro against the dollar, while Foot Locker saw a decline in sales. Interestingly, Décathlon did not do well in the USA, where it was led to close down its MVP Sports stores in the Boston area.
Europe was the base for 22 of the top 70 retailers with $20.2 billion in sales. This figure represented 25 percent of the $80 billion European market. North America had 37 of the top 70 chains, with 35 in the USA and two in Canada, accounting for $36.2 billion in sales, or 32.6 percent of the market in the region.
The Asia-Pacific region was the home of the other 11 retailers, which had $5.7 billion in sales, or only 11.6 percent of the region’s estimated sporting goods market. On the other hand, Asia saw the greatest growth in the trade, with chains registering a 13.9 percent sales increase, led by two in China that jumped more than 50 percent. Chains in North America recorded growth of 7.8 percent, while those based in Europe brought up the rear with an increase of 6.6 percent.
Seventeen retailers reported sales of more than one billion dollars, and 10 of these were in the USA. Three – SDI, JJB Sports and John David Group, which has since changed its name to JD Sports Fashion (see related story in this issue)– are based in the U.K.. France had two top scorers, Décathlon and Groupe Go Sport. Japan and Canada each had one in this elite club.
Developing markets such as China, Russia and India asserted their strength with good growth rates. In addition to the two Chinese companies with 50-percent-plus growth rates, RSH Holdings, a Singapore company operating in India, had an increase of 18.1 percent; and Russia’s Sportmaster grew by 20 percent.
Acquisitions also contributed to some growth. Dick’s Sporting Goods in the USA, which had growth of 24.9 percent, bought Golf Galaxy in the reported period, and Australia’s Ascendia Retail bought Rebel Sport, contributing to a whopping growth rate of 75.2 percent.
