The deflationary trend in the European market for sports clothing and footwear continued during the 12-month period ended last Sept. 30, according to the quarterly audit of NPD Sports Tracking Europe. Average prices declined by 2 percent in sports footwear and by around 5 percent in sports and leisure apparel in the five major European countries covered by this authoritative panel (see tables on this page).
Like before, the growth in volume was driven by the usage of these sports items for leisure purposes. There was some growth in the use of footwear for sports, but the growth rate was lower. On the other hand, among the various age groups only late teenagers and older people are spending more on sports and leisure apparel. Generally older age groups show growth in footwear as well, indicating a worrisome trend among the younger generations, probably due to the fact that the new collections of regular children’s shoes are coming to the market with more color and more comfort features.
The deflationary trends can be attributed for the most part to the effect of a lower dollar on retail prices. On the other hand, the data collected by NPD STE over the last few years show some other interesting longer-term trends. In France, for example, the total sports shoe market grew by 12 percent in volume and by 31 percent in value between 1999 and 2004, but the biggest growth took place in the leisure/lifestyle segment, where the average price grew by 24 percent over the period. The share taken up by this segment in the total market grew by 6 percentage points to 67 percent.
In terms of age, the biggest growth in the French sports footwear market between 1999 and 2004 took place within the 35-44-year-old age group, which spent 52 percent more in terms of value and 40 percent more in terms of volume. However, the growth in the average price was higher at 23 percent for the second-largest group of spenders, which goes from the age of 12 to 24. It represented 39 percent of the total market.
The market for children’s shoes stagnated in 1999-2004 in France in terms of volume, although the average price increased slightly. The average price rose less rapidly in the women’s market and more strongly in the men’s market, which represented 52 percent of total sales in 2004, but the women’s market grew a little faster in terms of volume and value.
NPD STE mentions another interesting trend for the British market, where general shoe stores have replaced mail order houses as the second-largest retail channel for sports shoes. Specialist sporting goods retailers remained the biggest channel in the 12 months ended last Sept. 30, with a 3.5 percent increase in their sales of athletic footwear to £744.6 million (€1,087m-$1,320m), thanks largely to the expansion of Sports World International whose market share rose by 3 percentage points. JJB Sports continued to lead the market, but like for JD Sports, its market share remained largely unchanged.
On the other hand, while the total athletic footwear market grew by 2.2 percent to £1.52 billion (€2.4bn-$3bn) over the period, shoe retailers like Clarks, Sole Trader or Shuh raised their sales of these items by 13 percent to an estimated £197.9 million (€288.5m-$350.5m). Instead, mail order houses saw their sales decline for the second year in a row, down by 13.1 percent to £177.4 million (€259.0m-$314.7m).
