Small growth on a currency-neutral basis in Europe and Asia helped the world’s largest sporting goods retailers to record a tiny 0.6 percent increase in sales on a weighted average basis in 2009, compared with 4.6 percent in 2008. Increases of 3.7 percent in Europe and 3.3 percent in Asia counterbalanced a drop of 1.9 percent by North American retailers. In dollar terms, the global sales of the major integrated retail chains declined by 1.5 percent to $70.4 billion, down from growth rates of 8.0 percent in 2007 and 4.9 percent in 2008.
The consolidation of the market around the major retailers continued last year, especially in Europe, where total consumption of sporting goods fell by 2.9 percent in terms of euros, according to our own estimates (see SGI Europe Vol. 21 – No. 25+26 of July 27). On a global basis, the market declined by 2 percent to $282 billion, according to NPD.
This annual survey by Sporting Goods Intelligence only ranks the integrated sport specialty store chains. While some of them are affiliated with the Intersport International or Sport 2000 International retail organizations, whose global retail figures are mentioned at the top of the chart, the pure buying and franchising groups are not included, although an argument can be made that they exert considerable influence over their members’ buying and merchandising. Figures from Europe include VAT.
In Europe, sales in dollar terms fell by 4 percent to $26,649 million for the 33 retailers based there. Décathlon continued its international expansion, generating more revenues outside France, and its global sales are now almost twice the size of No. 2 retail conglomerate, Foot Locker. The French-based Go Sport and two U.K.-based companies, Sports Direct and JD Sports, were members of the $1 billion-plus sales club as well, while troubled JJB dropped below that threshold after selling many unprofitable stores.
The handful of Asian retailers in the chart managed a 9.5 percent sales increase in dollars to $6,441 million. Generally flat sales by the large Japanese retailers were boosted by a strong 43 percent gain from China’s largest retailer, Pou Sheng, as well as a second-half surge in sales by Singapore’s RSH Holdings.
The North American group, which includes 42 or half of the total number of chains, registered a 0.7 percent sales decline to $37,316, compared with the 4 percent drop in the U.S. market calculated by NPD. North America is home to 12 of the top 20 global chains and seven of the top 10. It represents 53 percent of the total sales of the world’s major chains, far more than the 40 percent or so of the global market that is in North America, making it the most deeply consolidated marketplace.
For the most part, mall-based U.S. chains such as Foot Locker and Pacific Sunwear closed doors last year while full-line chains and specialty doors in outdoor and golf either decelerated expansion or remained stable. Coupled with comparable store sales that were often flat to slightly down because of lower inventories, it isn’t surprising that the market was flat.
There were a handful of American retailers that grew in the market. Lululemon continued to grow organically while Jimmy Jazz acquired the Man Alive chain from Finish Line. These were offset by major store closures, such as the liquidation of Joe’s and the downsizing after bankruptcy of Sportsman’s Warehouse. U.S. retailers are covered in the American edition of SGI.
Our study is primarily based on public figures but also involves estimates and input from management in cases where the companies are private. While our previous study of the European retail market covered the performance of the major retailer in each country, this one covers their global sales. We have added here an estimate for Lifestyle Sports of Ireland that was not in the chart published in the American edition of SGI last week, and we have restated the figure given for Modell’s. Sportmaster of Russia is no longer included in our study because it refuses to provide its retail figures and nobody seems to have a good guess at their retail turnover.
