The French sporting goods market grew by an estimated 2 percent in 2007, reaching €9,145 million after VAT, compared with the previous year’s flat rate. The figure includes about €1.4 billion worth of bicycles, whose sales rose by 5 percent with an increase of more than 10 percent in the sports specialty stores, to the detriment of the mass market.

Internet retailing for sporting goods grew by 15 percent compared with 12 percent growth in the previous year, taking up a more significant 3-4 market share of sales. According to FPS, the French sporting goods retailers’ federation that compiles these annual figures, specialty retailers like Décathlon, Intersport and Go Sport raised their combined share of the market to 75 percent, growing by 3 percent in absolute terms to €6.9 billion. On the other side, hypermarkets and other non-specialists, including supermarkets or fashion stores, had a sales decline of 2 percent to €2,245 million.

Sales in the mass market channel fell by 9 percent, with a particularly strong decline in the bike sector. Conversely, fashion boutiques and shoe shops recorded a second year of growth in their sales of sporting goods, thanks to the continuing popularity of low-profile shoes and apparel. While the shoe shops had 3 percent growth in sales of sports styles during the year, fashion boutiques had 1 percent higher sales in the segment.

Among the specialty retailers, the integrated sporting goods chains saw sales grow by 4 percent to €4.3 billion, while independent specialty retailers affiliated with buying groups recorded a lesser 2 percent increase overall, to €2.2 billion. Single-brand stores had a 4 percent rise in sales, while other independent specialists recorded more or less flat sales. Single-brand and independent non-affiliated stores take a 4 percent share of the market.

FPS warns that French consumers’ buying power is expected to hit an all-time low in 2008. Inflation rates are wavering around 3 percent and the mood is glum. Other items are likely to be prioritized over sporting goods in the household budget during the current year, but certain events such as the UEFA Euro 2008 and the Olympic Games may raise some of the hardier Gallic consumer spirit.

Besides the rebound in the bike market, which could be partly attributed to new municipal schemes to encourage their use for transportation purposes, the overall sporting goods market benefited last year in part from the fact that the World Rugby Cup was held in France.

Running is another growth category. According to recent figures published by the NPD Group, running apparel and footwear generated turnover of €215 million in France in 2007, after steady annual growth of 8 percent since 2003. A French runner is prepared to spend an average €73 on running shoes, compared with an average budget of €45 for sports shoes in general, says NPD. French women prefer to spend 25 percent or more of the total running budget on apparel, while men tend to limit this spending to 12.5 percent of their total budget.