Sporting and Recreational Goods Wholesalers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 4,600 sporting goods wholesalers in the US distribute merchandise related to sports and recreational activities. Major product categories include small firearms, ammunition, and shooting aids; athletic equipment and accessories; bicycles and bicycle parts and accessories; swimming pools and related supplies; and playground equipment. Other product categories include camping and fishing equipment; marine pleasure craft, equipment and accessories; skiing and snowboarding equipment; and billiards, pool, and bowling equipment and accessories.
Seasonal Demand
Demand for various types of sporting goods varies throughout the year, depending on the sport.
Dependence On Imports
The majority of sporting goods are manufactured in China or Taiwan, and then shipped to the US by sea.
Industry size & Structure
The average sporting goods wholesaler operates out of a single location, employs 14 workers, and generates about $10 million annually.
- The sporting goods wholesale industry consists of about 4,600 companies that employ about 66,500 workers and generate about $45 billion annually.
- The industry is concentrated at the top and fragmented at the bottom; the top 50 companies account for about 51% of industry revenue.
- Large companies include Big Rock Sports and BSN Sports.
Industry Forecast
Sporting and Recreational Goods Wholesalers Industry Growth
Recent Developments
Jul 2, 2024 - Sales, Wages Up
- Sales for miscellaneous durable goods wholesalers, including sporting goods wholesalers, showed improvement month over month in the first quarter of 2024, according to the latest data from the Census Bureau. Sales were up 2.5% in March 2024 from the previous month while down 5.4% compared to a year ago. Producer prices for miscellaneous durable goods wholesalers fell 1.1% in April 2024 compared to a year ago, according to the latest data from the Bureau of Labor Statistics (BLS). Prices have grown almost 35% since 2019. Employment by sporting goods wholesalers increased 2.7% in April 2024 compared to a year ago, and wages grew 6.4%, reaching an average of $27.91 per hour, per the BLS.
- Sports participation levels increased for 35 of the 56 sports and activities tracked in 2023 compared to the previous year in a National Sporting Goods Association report. The “2024 Sports Participation in the US” showed that pickleball participation continued its strong growth in 2023, up 54% over 2022. Team sports with the highest participation growth in 2023 were cheerleading (15%), soccer (12%), and flag football (10%). The personal contact segment, which includes boxing, wrestling, and martial arts, saw participation increases of 14% over the prior year. The wheel sports segment decreased 1.2% due to a fall in bike riding participation. According to Nick Rigitano, Director of Insights and Analysis at NSGA, “Overall it is great to see participation levels up across the majority of sports and recreational activities we track. It tells us the opportunities are there for retailers, team dealers and manufacturers in the sporting goods industry to grow their business.”
- Despite new supply chain challenges, inbound cargo volume at major container ports in the US is projected to exceed 2 million units in May 2024 for the first time since October 2023, according to the Global Port Tracker report from the National Retail Federation and Hackett Associates. The May projection is up 5.5% from a year ago, and June’s forecast of 2 million TEU is expected to be 8.9% higher year over year. Shipping routes have been strained by difficulties requiring rerouting around the Red Sea and Suez Canal and by March’s shutdown of the Port of Baltimore after an accident at the Francis Scott Key Bridge. According to Jonathan Gold, the NRF VP for Supply Chain and Customs Policy, “US imports are continuing to increase despite another disruption impacting US ports.” Gold added that the logistics challenges show the ongoing need for flexibility and resilience in a company’s supply chain.
- Consumer confidence levels fell in June 2024, after an uptick in May, according to data from The Conference Board. The Conference Board’s consumer confidence index was 100.4 in June 2024 from 101.3 in May 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those under age 35 and those in the income category of over $100,000. Plans for large appliance and smart phone purchases rose on a six-month basis, while plans for car purchases stalled.
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