This two-page chart is the same as the one published in the Aug. 28 edition of SGI Europe, but it carries new estimates for the retail sales of two Italian retailers and a Swiss one. It also introduces a significant new element of appreciation: consumption per capita.
The European average is €130.26 per capita. It is highest in the Nordic countries, those in and around the Alps and those with a higher gross income per capita. The comparison from one country to another is more plausibalenow that we have restated the market size figures for Austria, France, Germany, Italy and Switzerland, adopting a common definition for the sporting goods market in all the countries. (we are in the course of publishing big market research reports on all these countries).
In contrast with some national "official" figures, for us the market includes such items as sports bicycles (not toys or bikes usable only for transportation), home fitness equipment, golf products and fishing tackle, even if some of these categories are not handled by specialty multi-sport retailers in some countries. We also include estimates for mass merchants such as Carrefour or Metro.
The conclusion is still the fact that the European market as a whole was flat in terms of local currencies in 2008. In terms of euros, the consumption of sporting goods actually fell by 3.1 percent . The market in the 15 countries covered by our annual retail survey reached a level of nearly €51.5 billion. Adding Russia and other markets in the rest of Europe, the total market was probably below €60 billion.
In the eurozone, the sporting goods market dropped by 0.6 percent. In the other countries covered by our annual retail survey, the appreciation of the euro against the British pound and the Swedish kroner aggravated the decline of the U.K. market and diminished the growth of the Swedish market. Ireland fared even worse according to local sources, but the U.K. suffered a drop of 7.5 percent in sterling and 20.3 percent in euros. Without the U.K., the 14 other European countries would have seen flat sales overall in terms of euros.
The drop in the European market was higher if we add the so-called “emerging markets” of eastern Europe, hose economies have been badly shaken by the international credit crunch, the fall in international demand, the decline in raw material prices and the devaluation of national currencies. The Russian market alone, which is worth about $5 billion a year, fell by at least 15 percent.
The worsening economic situation was the main reason for the first decline in the European sporting goods market in recent years. The crisis had already started in 2007, when the market grew by only 0.6 percent in euros, according to our estimates. The market situation got worse at the beginning of 2008 with the onset of the economic recession in many countries, and the situation deteriorated sharply in the second part of the year.
The first half of 2009 is said to have been dismal, too, except in the snow sports sector, but economists have predicted that private consumption will improve in the second half. It has already started to give some encouraging signs in France and Germany, among others. The consumer confidence index was up in Italy during the month of August.
Sports-inspired fashion apparel and footwear suffered the most through the recent consumer recession, along with big-ticket items such as home fitness equipment. However, other technical-oriented products and segments such as outdoor and cycling continued to enjoy increased demand. The overall market would have been worse without the return of favorable snow conditions and the impact of the Euro 2008 football championships and the Beijing Olympic Games.
The return of the cold and the snow was one major factor that drove sales increases last year in countries such as Austria, Switzerland, Germany and the Nordic countries. All the other countries recorded sales declines.
Generally, major retailers with an already sold market position, such as Décathlon and Intersport, performed better than the market in most of the countries. The same goes for other retailers with a distinct position in the market such as Sports Direct in the U.K. and Belgium, or the acquisitive British JD Sports Fashion chain, or fast-expanding chains such as Lifestyle Sports in the Republic of Ireland (our figures for this company are only estimates) or Sport Zone in Portugal.
The tables in these pages report the companies' actual or estimated retail sales in each individual country, to the exclusion of their operations in other countries. They provide sales increases or declines for them on an absolute basis, including the addition of new stores.
