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 4,500 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 4,500 companies that employ about 62,000 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
Mar 2, 2024 - Rising Employment Costs, Levels
- According to data from the Bureau of Labor Statistics (BLS), employment levels for sporting and recreational goods wholesalers were slightly higher in December 2023 over the previous year and have increased by 22% since pre-pandemic figures. Employment costs have climbed significantly in a tight labor market, with wages reaching $27 an hour in the fourth quarter of 2023 and rising nearly 20% since December 2019, according to the BLS. Producer prices for miscellaneous durable goods wholesalers, which includes sporting and recreational goods wholesalers, trended down in the fourth quarter of 2023. In December 2023, producer prices were flat from the previous year and rose 32.6% from 2019. Additionally, consumer spending levels grew in the last half of 2023, a 3.1% increase in the third quarter and 2.8% in the fourth quarter, according to Reuters.
- US manufacturing activity contracted in February 2024, falling below the baseline for growth for the sixteenth consecutive month, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 47.8% in February, down 1.3 percentage points from the 49.1% recorded in January. A reading above 50% indicates manufacturing expansion. February’s New Orders Index was in the contraction zone at 40.2%. The February Production Index was 48.4%, a decrease from January’s 50.4%. Eight manufacturing industries tracked by the ISM reported growth in February: Apparel, Leather & Allied Products; Nonmetallic Mineral Products; Primary Metals; Plastics & Rubber Products; Fabricated Metal Products; Chemical Products; Miscellaneous Manufacturing; and Transportation Equipment. The industries reporting contraction in February were Furniture & Related Products; Machinery; Wood Products; Computer & Electronic Products; Food, Beverage & Tobacco Products; Paper Products; and Electrical Equipment, Appliances & Components.
- Sporting and recreational goods wholesalers will have to monitor minimum wage changes, as 22 states increased their minimum wages in January 2024, according to Chain Store Age. About half of the increases are automatic adjustments linked to inflation. States that raised their minimum wages in January 2024 include Hawaii ($14), Maryland ($15), Nebraska ($12), and Washington ($16.28). Several states are set to boost their minimum wage levels later this year, including Florida (up to $13 in September) and Nevada (up to $12 in July). According to the Economic Policy Institute, nearly 40 US cities and counties will increase their minimum wage rates above state levels at the start of the new year. The federal minimum wage is $7.25 an hour, and more than 20 states, primarily located in the South and the Midwest, use the federal minimum as their wage floor.
- Consumer confidence levels fell in February 2024 after increasing for three consecutive months, according to data from The Conference Board. The Conference Board’s consumer confidence index fell to 106.7 in February 2024 from 110.9 in January 2024. According to Dana Peterson, Chief Economist at The Conference Board, “The decline in consumer confidence in February interrupted a three-month rise, reflecting persistent uncertainty about the US economy. The drop in confidence was broad-based, affecting all income groups except households earning less than $15,000 and those earning more than $125,000.” Peterson added that the decline in consumer confidence was largest in householders over 55 and those under 35. Plans to purchase homes, autos, and large appliances decreased slightly on a six-month basis.
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