| Monthly Retail Trade Report: June Sporting Goods Store Sales Strengthen | |
Following more modest increases in April and May, the Monthly Retail Trade Survey, prepared by the U.S. Census Bureau, reported strong sales growth in sporting goods stores for June. For the most recent reporting month (June), sales were $3.6 billion (preliminary), 7.8% ahead of June 2009. It was the strongest showing since March when sales rose 12.1%.
Year-to-date sales of $18.4 billion are 5.7% ahead of the same six months in 2009.
Sales for 2009 were $37.7 billion, up 1.6% for the year. This was the slowest growth since 2002 when growth was 0.2%. Sales for 2008 were $37.1 billion, up 2.3% from 2007. Sales for 2007 reached $36.3 billion, up 6.3% from 2006 sales of $34.1 billion. Sales in 2006, up 10.6% over the previous year, represented the strongest increase in the past 10 years.
The estimated annual sales for sporting goods stores in the U.S. Census Bureau Monthly Retail Trade is consistent with sporting goods sales reported in the NSGA study "The Sporting Goods Market." The U.S. Census Bureau estimates are based on data from the Monthly Retail Trade Survey, Annual Retail Trade Survey, and administrative records and have been adjusted using results of the most recent economic census. The NSGA study is based on a sampling of 80,000 U.S. households.
For a full comparative chart of sales in sporting goods stores, visit the members-only "Research & Statistics" area of the NSGA website (www.nsga.org). |
Census of Retail: Number of Sporting Goods Stores Remains Steady |
The total number of sporting goods stores, which include full-line and specialty sports shops, rose 0.3% in the United States during the five-year period 2002-2007, according to an NSGA analysis of recently released (7/23/10) U.S. Census of Retail data. There were 22,254 stores in 2007 versus 22,193 in 2002.
Although there was little change in the total number of stores, the two sports-store channels fared differently. The number of full-line stores fell 6.0% to 6,441 from 6,882 in 2002. The number of specialty sports shops rose 3.1% to 15,813 versus 15,341 in 2002.
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 reported in a future NSGA Research News. In the previous Census (2002), 6,084 athletic footwear stores with sales of $7.1 billion were reported.
Sales growth was stronger in the full-line store segment, up 44% to $18.66 billion in 2007 versus $12.98 billion in 2002. Sales in specialty sports shops rose 31% to $15.83 billion versus $12.05 billion in 2002. In the previous Census of Retail, sales had also grown more rapidly in full line stores than in specialty sports shops, 39% versus 12%.
Sales per store in full-line stores were significantly higher than those in specialty sports shops. Among full-line stores, 2007 sales per store were $2,863,000; among specialty shops, $992,000. With the continued expansion of the number of large format stores in the 2002-2007 timeframe, sales per store in full-line stores grew at almost twice the rate as in specialty sports shops. Versus 2002, sales per store in full-line stores rose 51%; in specialty sports shops, 29%.
NSGA Research has extracted data from the Census on full-line sporting goods stores, specialty sport shops and athletic footwear stores and compiled that data into a 58-page report. For these three categories of stores, the report provides sales, number of stores, number of employees, sales per store, sales per employee and number of employees per store. This data is provided for the U.S., for the nine census regions and for all 50 states. Data from the current Census (2007) is compared with previous Censuses. Cost of the report (Sporting Goods Stores: Sales, Number & Distribution) is $140 to NSGA members, $190 to non-members.
The U.S. Bureau of the Census conducts the Census of Retail Trade once every five years. Data already released and a schedule of when additional data will be released may be found at www.factfinder.census.gov/. |
Global Sports Market Declines | |
In its fifth annual study on the global sports market, Global Sports Estimate 2010, The NPD Group reports that the worldwide sports market has declined for the first time since 2005. Global sales of sports equipment, apparel and footwear, valued at $282 billion (EUR213 billion) for 2009, declined 2% from 2008. For 2009-10, NPD is forecasting 1% growth based on current trends.
The market declined 4% in the U.S. and 5% in Japan, which NPD said are keys to understanding the global decline. While the overall sport market suffered declines, there are pockets of growth: Middle East (+3%), North Africa (+5%), equipment in Europe (+1%), and footwear in Asia (+1%).
Looking at footwear, apparel and equipment products purchased for "sport use," the Global Sports Estimate found they performed better in Europe (-1%) and Asia (+1%) than in the U.S. (-4%). Products purchased for "sport style" were down everywhere, -3% in Europe and in the U.S. and -1% in Asia.
The NPD Group measures the athletic footwear and sports apparel markets in 10 countries, representing 70% of the global sports sales. For the remaining 30%, NPD estimates are based on assumptions related to Gross Domestic Product development.
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July CPI for Sporting Goods Remains Negative; Spread Narrows |
As the spread between the two indices continues to narrow, the CPI for Sporting Goods remained modestly negative while the CPI for All Items remained modestly positive. The CPI for Sporting Goods fell 1.6% in July following declines of 2.1% in June and 1.8% in May. The previous seven months had seen declines of 2.0% to 4.4%. It had risen 0.3% in October.
The CPI for All Items, which turned negative in March of 2009 and had remained there most of the year, rose 1.2 % in July following rises of 1.1% in June, 2.0% in May, 2.2% in April and 2.3% in March.
At 2.8%, the July spread (the distance between the CPI for Sporting Goods and the CPI for All Items) is below the 3.2% June spread and the 3.8% May spread. It is also well below the 6.5% spread in February. The February 2010 spread between the two CPIs was the highest it has been since February 2009. In that month, the spread hit 7.3%.
For 2009, the Sporting Goods CPI averaged a 2.1% increase following a 2.3% increase in 2008. These are the first years since 2004 that the Sporting Goods CPI has shown a positive change from the previous year.
For 2007, the Sporting Goods CPI averaged a 1.5% decline. For 2006, it averaged a 1.3% decline. For 2005, the decline averaged 1.1%; for 2004, 1.2%; for 2003, 0.8%; for 2002, 2.6%. The Sporting Goods CPI reached its negative peak in December 1999, when it was down 5.8% versus the previous year.
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| April Topline Reports on Outdoor, Athletic Apparel, Running, Dive, Paddle |
The NSGA Research Newsletter is highlighting information from the monthly Leisure Trends Group Topline Report, to which the company is providing free access for 2010. The report provides retail market intelligence to the following industries: Outdoor, Run, Snowsports, Athletic Apparel, Scuba Dive, Paddle (Canoe and Kayak). All data includes three years of continuous history, and vital measures such as: units sold, dollars spent, average retail selling price, inventory units and dollars, sell-through and retailer margin.
Outdoor Overview: June 2010 sales were up 13% ($228.7 million versus $207.3 million in June 2009) overall for the outdoor channel (outdoor chains, outdoor specialty and online). Online sales gained almost 50% in dollars sold compared to June 2009 and accounted for 22% of June sales in the outdoor channel, up from 17% last June. Outdoor chains gained 10%; outdoor specialty stores showed a 1% drop in sales for the period.
So far this year, sales are up 11% to $2.57 billion across all three channels with steeper growth coming from online sales and from outdoor chains. Although sales growth is slowing in outdoor specialty stores, the first half of 2010 reached $948.7 million, 2% ahead of 2009 in overall dollar sales. Outdoor chains, which represent 42% of the market year-to-date, grew 15% to $1.07 billion. Internet sales grew 19% to $550.0 million and represented 21% of the market year-to-date.
 Paddlesports Overview: In the first half of 2010, all paddlesport sales were up 7% to $201.1 million compared to the same period in 2009. At the end of June, more than 73,000 kayaks sold through paddle specialty retail and approximately 101,000 remained in specialty retailers' inventory. Retailer sell-through stood at 58%, down one point from 59%.
Stand Up Paddle Boards (SUPs) have sold approximately 3,000 boards year-to-date through all three paddlesport retail channels at an average selling price of $1,148. Specialty stores sold more than half of those boards. SUPs are turning faster than kayaks so far in 2010, and are offering a 32% average margin, not far below the 34% margin for kayaks and well above the 29% margin for canoes.
Running Overview: Total running industry retail dollar sales totaled $67 million in June 2010, up a healthy 10% over June 2009; unit sales were up 11% this month as average retail-selling price declined 1%. Year-to-date sales are up 13% to $273.1 million.
The entire category of running shoes (road, race and trail) continued to show positive momentum in June, up 9% in units and dollars compared to the same time last year. Neutral/cushion shoes continued to fuel sales, gaining 21% in units and 22% in dollars over last June.
All running apparel categories (sportswear, outerwear, base layer) increased dollar sales over last June. Woman's specific apparel fueled both sales and growth this month. Women's apparel items accounted for 56% of all adult apparel dollars sold this June (up from 54% last June) and gained 8% in sales for the month, led by short sleeve and sleeveless shirts, bra tops, shorts and skirts/skorts. Men's and gender-neutral items were up a more modest 2% for the same period. So far this year, all apparel sales increased 8% in units and 7% in dollars, with growth coming from both men's and women's products.
Dive Overview: All dive merchandise was down 5% in unit sales this month, and while average retail-selling price was up 3%, the category still finished 2% below June 2009 dollar levels. Dive suit dollar sales decreased 13% for period, with double-digit losses coming from all suit categories. Photo equipment was up 35% and 31% in unit and dollar sales, respectively, bringing in a notable $1.7 million for the period. Year-to-date the entire dive category is down 6% to $332.2 million.
Dive services saw a directional decline in June, with instruction, rentals and dive travel declining compared to the same time last year. However, service and repair dollar sales were up this month over June 2009 levels.
Athletic Apparel Overview: Athletic apparel sales were positive again this month, with across the board double-digit growth compared to June 2009. The entire category grew 12% to $139 million for the month. Athletic sportswear, licensed apparel, outerwear, base layer and socks all increased dollar sales against last June. Year-to-date sales are up 13.5% to $736 million.
Leisure Trends Group is providing free access to its Topline Report, thanks to a sponsorship from SnowSports Industry (SIA). Topline reports are delivered via LTG's new TRAKView™ interface, which features dashboards with options for analysis of retail sales data. You may register to use TRAKView™ at https://www.leisuretrends.com/websignup.aspx. |
| Firearms Sales Indicator Renews Upward Trend |
Renewing an upward trend begun last month, background checks for firearms rose 10.7% in July following a 3.9% rise in June, according to data from the FBI's National Instant Criminal Background Check System (NICS). Except for a minimal rise of 0.6% in April, background checks had been trending downward since January of this year. In July, 1,069,792 background checks were performed; in the same month in 2009, 966,163.
Year-to-date 2010 background checks number 8.0 million, down 0.2% 2009 year-to-date.
The unprecedented rise in background checks began in October 2008 and reached a record 1,529,635 requests for background checks in November 2008, a 42% jump over the previous November. For 2009, total background checks numbered 14.0 million, up 10.4% from 12.7 million in 2008.
FBI background checks are required under federal law for all individuals purchasing firearms from federally licensed retailers and are considered a strong indicator of actual sales by industry experts. |
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| Golf Rounds Fall Again in June |
 After a weak May (down 2.9%), June rounds played remained negative for the golf industry. Rounds played in the U.S. fell 2.1% in June, according to the National Golf Rounds Played Report. Year-to-date rounds are now down 2.7% through June. The reporting is based on data from operators at 3,800 golf facilities.
Rounds played for the entire year of 2009 were down 0.6% versus the 12 months in 2008. For 2008, they were down 1.8%. For 2007, rounds played were down 0.5%; in 2006, they had been up 0.8%.
Regionally, the Northeast and Mid-Atlantic regions are posting the only positive results year-to-date. New England is posting a 10.0% increase; the Mid Atlantic, a 5.7% increase. The South Central region is posting the worst year-to-date decline, down 8.0%.
Public access courses are showing a smaller decline year-to-date than private courses. Public access courses are down 2.3%; private courses, 4.3%. |
| July Heat Turns Golf Weather Indicator Negative |
July, with widespread and extended heat, brought an unexpected and unfavorable turn which depressed national Golf Playable Hours (GPH), according to Pellucid Corp.'s Weather Impact Tracking Report. GPH fell 5% for July 2010 versus the same month a year ago.
That completely erased the previous slight year-to-date GPH favorability with the 2010 year-to-date GPH measure now registering flat versus year ago. At the national level for the year-to-date period, the weather distribution of weekdays versus weekends favorability returned to an even balance with both "weekparts" being statistically flat versus year ago.
The July year-to-date weather impact breadth ratio results (measured as number of regions up compared against number of regions down) turned negative again at 1:1.3. This is comprised of 15 regions up versus 20 down and 10 in the neutral zone. The Northeast, Great Lakes, Ohio Valley and Pacific Northwest regions continue to show favorable weather trends for the year. The Southeast, Mid-Continental, Texas, Rockies, Southwest and Hawaii continue to fight weather unfavorability this year.
Looking back at the previously reported June weather results versus the Golf Datatech/NGF rounds played figures, the monthly Percent Utilization measure held its own at 53% (comprised of an 2% decrease in rounds demand against a 2% decrease in GPH for the month). This puts it statistically flat with the 2009 yearend benchmark through June.
For more specific information on Pellucid's Weather Impact capabilities, including a sample report and pricing, contact Jim Koppenhaver at jimk@pellucidcorp.com. |
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For a full description of NSGA research available, go to the NSGA website, www.nsga.org, and click on Information Center & Statistics. NSGA research reports are available to purchase on the NSGA website or by contacting Dan Kasen in the NSGA Research Department, (847) 296-6742, Ext. 108; e-mail: dkasen@nsga.org. |
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