NSGA Research Analysis Tip: The Importance of Utilizing an Index |
 Over the course of a given year the NSGA Research Department assists a variety of organizations with sporting goods industry analysis. During these conversations there is a relatively basic analytical technique, the application of an index, that is often overlooked but can prove to be highly valuable.
Understanding the meaning of an index and being able to utilize it properly can make your decisions from research data significantly more effective. To better describe and illustrate how an index can be valuable, let's use an example from NSGA's baseball participation data.
Below in Figure 1, participation is being compared between the states of Indiana and Pennsylvania. The results show that each state represents 4.2% of total baseball participation (seven years of age and older) within the U.S. If you were a member of an organization focusing on a product or a program geared towards baseball participants, then an initial conclusion you might come to would be that both states represent equal opportunity (given the identical figures).
This is not necessarily a correct conclusion because the state populations were overlooked. The additional step that should be performed is to create an index of participation by factoring in the state populations. Figure 2 shows that Indiana represents 2.2% of the U.S. population (seven years of age and older) while Pennsylvania represents 4.2%. To create the index, divide each state's % of participation by the % of population, then multiply by 100.
Typically an index between 90 - 100 is considered average, an index below 90 is considered below average, and an index over 110 is considered above average. Figure 3 shows that Indiana has an index of 188 (4.2% ÷ 2.2% x 100) while Pennsylvania has an index of 100. In other words, Indiana residents (seven years of age and older) are almost twice as likely to participate in baseball than the average. By applying this additional analysis it clearly shows that Indiana has a higher concentration of baseball participants and could represent a greater opportunity than Pennsylvania.
This type of analysis can be performed on several different types of data, not just within an analysis of state participation. For further discussion or if you have questions, please feel free to contact Dustin Dobrin, Director of Research and Information, at (847) 296-6742, ext. 1170.
  
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February Sporting Goods Sales Decline in Run/Fitness Segment | |
 More than two straight years of sporting goods chain store dollar growth ended in February 2013, with colder weather likely influencing this year's figures. Compared to February 2012, units declined by 8% and dollars by 7% to just under $740M. Both footwear and apparel posted unit and dollar losses. Accessories avoided dollar losses due to a rise in average retail-selling prices.
Accounting for 74% of the month's footwear dollars, road running shoes drove declines, falling 14% to settle at $224M. From a smaller base, stability road shoes managed a 4% increase to $37M. Trail runners increased 8% to nearly $14M and sandals gained a noteworthy 24% to $10M.
While the apparel category dropped 7% from last February to $293M, sportswear sales did quite well. On the strength of short sleeve shirts, long sleeve shirts, bra tops, sweatshirts, capris and sweatpants, sportswear rose 6% to reach $163M. Licensed apparel had very different results, down 26% to $72M. Dropping 14% to total $39M, baselayer sales also suffered this February.
Apparel accessories climbed 15% to $78M. Electronics also did well, up 17% to just over $7M.
Please note that NSGA members now have complimentary access to point-of-sale data through NSGA's partnership with Leisure Trends Group. For access to this valuable data, please click here, fill out your contact information, and you will be sent credentials for access.
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2013 Edition of the Cost of Doing Business Survey Is Now Available! | |
NSGA is excited to announce that the 2013 edition of the Cost of Doing Business Financial Survey is now available.
Compiled every two years, the report provides sporting goods stores and financial organizations with up-to-date comparative financial information and benchmarks. Besides Balance Sheet and Income Statement data, the survey includes a wide variety of profitability, productivity, and financial management measures. It also provides detailed margins and turnover data separately for equipment, footwear, and clothing.
A few ways in which this report can help include the following:
1) The U.S. Small Business Association contends that borrowing money is still one of the most common sources of funding small businesses. Aside from the information on cash flow, collateral, and expenses, lenders may also require benchmarks.
2) Compare inventory turnover rates, defined as cost of goods sold divided by ending or average inventory.
3) Determine productivity of sales staff by analyzing payroll expenses as it relates to operating margin.
Please click here to learn more about ordering your copy of the report.
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March CPI for Sporting Goods Decreased 1.9% vs. March 2012 |
The CPI for Sporting Goods continues to track below last year's figures as the March CPI declined 1.9% vs. March 2012. This is not consistent with the CPI for all goods as the CPI for all items has consistently been experiencing increases.
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Still Time to Register for the 2013 Management Conference & Team Dealer Summit! |
There's Still Time to Register!
We're less than a month from the 2013 NSGA Management Conference & Team Dealer Summit, but there is still time to make your plans to attend! By joining your fellow industry executives at the event, you can take advantage of:
- Timely, Cutting-Edge Education from Engaging Thought Leaders - With more than 35 speakers in 22 sessions, the event's educational content will run the gamut of topics for all types of industry leaders. From general leadership content, to strategic and operational content specifically for sporting goods industry leaders, the event provides it with outstanding speakers to guide you through each topic.
- Impactful Relationship Building - This year's event will also include more opportunities to connect with fellow attendees. A Sunday morning tennis clinic and a Monday afternoon walk to get moving after a day of education have each been added.
- Relevant Industry Recognition - The NSGA All-Star Awards and College Scholarships will be presented, as will the Sporting Goods Industry Hall of Fame induction.
Learn more and register today at www.nsga.org/conference.
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