NSGA: U.S. Census Data Illustrates Consolidation at Retail

Sporting goods sales in the eight largest sporting goods chains grew to 52.6% of sales in this channel of distribution during the five-year period 1997-2002, according to an NSGA analysis of recently released U.S. Census of Retail data. In the previous five-year period, the eight largest chains represented 45% of sales.

Concentration of sales in the eight largest sporting goods chains grew less rapidly between 1997 and 2002 (7.6%) than in the previous five-year period (9.8%).

Concentration of sales also grew in the specialty sports channel, but not to levels seen in the full-line channel. Sporting goods sales of the eight largest specialty retailers grew to 15.9% of sales in this channel of distribution during the five-year period 1997-2002. In the previous five-year period, the eight largest specialty retailers represented 10.9% of sales.

However, concentration of sales in the eight largest special sports retailers grew more rapidly between 1997 and 2002 (5.0%) than in the previous five-year period (3.2%).

“What is especially interesting is that ‘big box’ retailing is moving into specialty sports retailing,” NSGA Vice President of Information & Research Thomas B. Doyle said. “For the four largest firms, sales per store has climbed to $7.2 million per store in specialty versus $7.9 million in full line stores. Five years earlier those numbers stood at $2.0 million for specialty, $5.2 million for full-line.”

Sales growth was stronger in the full-line store segment, up 39% to $12.98 billion in 2002 versus $9.31 billion in 1997. Sales in specialty sports shops rose 12% to $12.05 billion versus $10.73 billion in 1997. In the previous Census of Retail, sales had grown more rapidly in specialty sports shops than in full line stores, 42% versus 35%.

The Census of Retail does not count specialty athletic footwear stores in the sporting goods store category. Data on specialty athletic footwear stores will be released by the U.S. Bureau of Census later this year or early in 2005.

“Concentration is much higher in this industry segment,” Doyle said. “In the previous Census, multi-unit specialty athletic footwear chains accounted for 90% of sales in this channel.”

The Census of Retail Trade is conducted once every five years by the U.S. Bureau of the Census.