Norway’s biggest sports chains – Sport1, Intersport, Anton Sport, Löplabbet (Sport Holding), XXL, Stadion, Obs! and Stadium Outlet – sold a total of just over NOK 3 billion (€256.1m) worth of sports equipment in the second quarter of 2024. This was reported by the Norwegian Sports Industry Association. The amount decreased by 3.8 percent compared to the same period last year. The combination of high sales during the pandemic, expensive times, and a small portion of psychological factors influences sales in the sports industry, the organization reports.
“After some very strong years with significant growth, the sports industry has experienced an expected correction after the pandemic,” says Trond Evald Hansen, CEO of the Norwegian Sports Industry Association (NSIA). ”Sports chains reported a slight decline in sales for 2023 with 2.9 percent. Many are, therefore, very excited about how 2024 will turn out and how the year will start. The reported figures from the sports chains show that sports equipment was sold over the counter for just over NOK 5.7 billion (€486.6m) in the first half of 2024 – compared with just over NOK 6.1 billion (€520.8m) in the first half of 2023. “This is a decrease of 7 percent. It was particularly the first quarter where the decline compared to last year was large,” he continues.
The effects of the pandemic and a bit of psychology
All over the world, it has been repeatedly described that the pandemic’s dramatic sales figures will have a corrective effect on the sports industry in 2024. It’s all the same in Norway. There have been sharp price increases in several sectors. Norwegians on holiday abroad have felt the effects of the weak Norwegian krone. Nonetheless, good wage settlements have given Norwegians a better real economy. Savings among Norwegians are increasing. The household savings rate in the first quarter of 2024 is estimated to be 6.6 percent, a significant increase from the level in the fourth quarter of 2023, Statistics Norway told earlier his summer.
“Most sports chains, especially those targeting the low-price segment, see a pattern in that inexpensive items still sell better than more expensive items, while the sports stores that sell well-known brands with higher price points also show good sales and are very pleased with the development,” Hansen said.
Demanding bike sales, increased helmet sales and queues at bike repair shops
Bicycles are an important category in the sports industry. Sales fell sharply in 2023, as in many other European countries, to around 275,000 bikes sold, compared with the record year of 2020, with over 400,000 bikes sold. During the second quarter of the year, when the desire for bicycles is naturally greatest, NSIA see that Norwegians are holding back on purchasing expensive products. Electric bikes over NOK 30,000 have slowed down considerably.
When helmets became mandatory on electric scooters for children under the age of 15, this had a positive effect on helmet sales. The country’s bicycle workshops are repairing and maintaining bicycles more than ever.
Running: a megatrend
As in neighboring Sweden, people tend to keep up the running – sales records are set for running shoes in Norway. According to reports from specialist retailers that are particularly strong in the running segment, more and more young people are running. In the past, the “typical” avid runner was aged 30 plus. Now, there are far more teenagers and 20-year-olds driving the running wave.
Many people still run to compete, and the new running shoes are helping to set records, but the strong trend is still a focus on the joy of running and community. Running shoes have undergone tremendous innovation recently, with carbon plates and midsoles providing better traction and cushioning.
Inventories, currency and profitability
After the pandemic, there were challenges with access to raw materials, pressure on production capacity and sometimes significant logistical challenges. Among other things, this contributed to shortages of certain goods and late deliveries. The value chain has now largely recovered. The major sales campaigns that dominated and characterized the sports industry in 2023 will not be seen as strongly in 2024. However, there is little doubt that competition in the sports industry is tough.
“The weak Norwegian krone affects profitability. The current dollar and euro exchange rates, which are 10 to 20 percent higher than just two years ago, hurt the gross margin for the sports industry, where almost all trade is with foreign countries and in the aforementioned currencies,” said Hansen.
A varied July
NSIA reports that the third quarter shows no clear signs of progress for the sports industry as a whole. Some report good sales this summer, while others report sales figures similar to the previous year. Good availability is reported for virtually all product categories in the sports industry. There is good reason to believe that the large outdoor category will also pick up in the run-up to the fall holidays.
An industry in transition
Trade channels are changing rapidly in all retail sectors, including the sports industry. The figures presented in this press release only refer to the sales of sports chains, not independent traders or retailers of sports products.
