The credit crisis, see-sawing stock market and upcoming presidential election are causing consumers to monitor their wallets during these uncertain times. As a result, consumers find themselves looking for cheaper ways to purchase sporting goods, as well as ways to make money from their used gear.
“People are looking to sell things, clean out their garages and basements to generate some cash,” said Play It Again Sports Director Pat Quinn. Despite this credit crunch, “Theyre still going to keep their kids playing sports. They might cut back on the high-end products, [but] we see them still purchasing the right equipment for their kids to play.”
Quinns observations mirror a trend that is increasing throughout the sporting goods industry-people trading in their old, used sporting and fitness equipment in exchange for cash or credit on newer gear. Dan Myers, senior product manager for Amazon.coms Sports & Outdoors store, noted that the online giant has seen a 40% increase in used sporting equipment sales since last year.
Quinn has also noticed significant growth since last year. “Our franchises and locations in the U.S. and Canada have had a huge increase in people bringing in [sporting] equipment and fitness [equipment]. Our sales numbers have doubled, people are looking for better value.”
He continued to say that Play It Again, which offers customers the option of trading in their used gear for cash, store credit or consignment deals, has seen double-digit growth in every category of its sales.
Both retailers agree that fitness equipment has seen the most growth on both the trade-in and purchasing sides. “Fitness is the one thing thats leading the way because of the economy and the customers desire to find something in their home that they can get money for A big dollar item that a lot of people havent been using Its motivation to get it out of their house,” said Quinn.
John Barker, GM of Play it Again Sports Charlotte, NC location, observed that the highest sales in used sporting gear typically depends on the season, although baseball bats and inline skates usually top the charts. “A used baseball bat is $50, while a new one is $120. Thats a pretty big price gap,” he commented. “If [customers] bought new [inline] skates itd be $300 or $400, so theyre saving $250 just buying used.”
Myers noted that the biggest increase of online used sporting goods sales has been in golf equipment, with a 60% rise in sales since last year.
Quinn said bleak economic news may merely be intensifying a trend that had already begun in America-recycling. “The growth [in used equipment sales] started two or three years ago. The word recycling has become big; people are looking at their used gear and saying Do I really want to throw that away?”
Looking towards the future, Quinn said he expects to see used equipment continue its popularity in 2009, but the company doesnt have any plans to open any additional stores beyond those already planned. Nor has he seen an increased interest in franchising opportunities.
“With the economy the way it is, I see most people (businesses) holding onto their money to gain consumer confidence. The banks are a little tighter on what theyre willing to loan out for The economys not going to change overnight.”
