Sporting Goods Stores NAICS 459110
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Industry Summary
The 20,000 sporting goods stores in the US sell a wide range of sporting and athletic products to recreational enthusiasts and the general public. Products typically fall into three broad categories: apparel, footwear, or hardline merchandise (equipment and accessories). Specialty stores may focus on only one category of product, such as golf or skiing.
Intense Competition Creates Challenges
Sporting goods stores face intense competition from large chains, mass merchandisers, catalogs, and Internet retailers.
Reliance On Imports
A significant portion of the products that sporting goods stores purchase for resale, including those purchased from domestic suppliers, are manufactured abroad in countries such as China, Taiwan, and Vietnam.
Recent Developments
May 6, 2025 - Slower Growth Forecast
- The US sporting goods stores industry is projected to grow at a CAGR of 2.36% between 2025 and 2029, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The expected growth rate is slower than the overall economy‘s anticipated growth. The retail and wholesale sectors are driven by consumer spending, along with expenditure by businesses and government. A factor that may limit consumer spending is higher tariffs on consumer goods. On a positive note, lower inflation supports a moderate increase of real disposable income by about 2% in 2025 and 1.9% in 2026. Real income could suffer to an extent if average prices rise due to tariff implementation. The forecast said retail spending could soften with the growth of spending on consumer services.
- According to a report in the Wall Street Journal, Academy Sports & Outdoors and other value-oriented retailers are seeing more high-income shoppers visit stores due to financial stress. Academy said data shows that the higher-income shoppers made more visits in the fall of 2024, continuing into 2025, primarily due to financial stress. The company defines affluent shoppers as households earning over $100,000. At the same time, the retailer is seeing its core value shopper pull back from spending. To keep its affluent shoppers interested, Academy has modified its product mix, adding higher priced goods such as Nike’s Jordan brand footwear for the first time.
- A new report by McKinsey revealed that 84% of global sporting goods industry executives have expressed concern about the impact of the geopolitical environment on their business. The report said potential tariff increases in 2025 could have significant effects on the sporting goods sector in terms of pricing and supply chain management. McKinsey said companies can prepare for tariffs by reviewing their supply chain footprints and inventory management practices to derisk and diversify their supply chains. Sporting goods companies also must manage shifting consumer demands, as shoppers continue to be cautious amid persistent inflation. The global sporting goods sector saw a 7% annual growth rate from 2021 to 2024 and a growth outlook of 6% a year from 2024 to 2029, with slowdowns expected in the Asia-Pacific, Western Europe, and Latin America regions. Meanwhile, North America is expected to grow from $114 billion in 2017 to $209 billion in 2029.
- According to a report in CFO Dive, consumer sentiment, an indicator of sporting goods store spending, fell in large part due to tariff uncertainty and an expectation of higher prices. The final index of consumer sentiment from the University of Michigan dropped 8% in April 2025 from the previous month. An index measuring consumers’ expectations for the future fell nearly a third since January, the steepest three-month percentage decline since the 1990 recession. According to survey director Joanne Hsu, “Consumers perceived risks to multiple aspects of the economy, in large part due to ongoing uncertainty around trade policy and the potential for a resurgence of inflation looming ahead.”
Industry Revenue
Sporting Goods Stores
Industry Structure
Industry size & Structure
The average sporting goods store employs about 12 workers and generates about $3 million in annual revenue.
- The sporting goods stores industry is comprised of 20,000 retail establishments, generating sales of about $67 billion, and employing 240,000 workers
- Large sporting goods retailers include Dick's Sporting Goods, Cabela's, and Big 5 Sports.
- In general, competition tends to fall into the following five basic categories, depending on a stores size and/or product offerings: superstores, traditional stores, specialty stores, mass merchandisers, or catalog/internet retailers.
- Superstores - Stores in this category are usually 35,000 square feet or larger and tend to be in freestanding locations. These stores typically offer a very wide number of products, across all athletic and sporting venues, and emphasize high volume sales. They often offer their own private label branded products, in addition to nationally branded products. Examples of sporting goods superstores include Dick's Sporting Goods and Academy Sports & Outdoors.
- Traditional Stores - These stores usually range in size from 5,000 to 20,000 square feet and are frequently located in regional malls and multi-store shopping centers. Traditional stores can be independent or chain stores, usually carry a varied assortment of athletic and sporting merchandise, and often position themselves as convenient neighborhood stores. Stores in this category include Big 5 Sporting Goods and Hibbett Sports.
- Specialty Stores - Specialty sporting goods stores range in size from about 2,000 to 20,000 square feet and typically offer an extensive assortment of one specific product category, such as athletic shoes, golf, or outdoor equipment, or may focus on one or a limited number of sports. They often have a lower operating-cost advantage because of their smaller store footprint. Specialty stores typically carry higher quality lines of products, selling at higher prices but lower volume, and may offer more extensive services, like repair and maintenance, or pro-shops. Examples of these stores include Bass Pro Shops, Cabela's, Foot Locker, and REI.
- Mass Merchandisers - This category includes discount retailers such as Walmart or Target, and department stores such as Macy's and Kohl's. They may be located in regional malls, shopping centers, or freestanding sites. These stores range in size from 50,000 to 200,000 square feet, but the space devoted to sporting goods merchandise represents a very small portion of their overall square footage. Their merchandise selection is usually much more limited than other sporting goods retailers, and is typically focused on popular sports and fast-moving merchandise. Mass merchandisers place less emphasis on customer service and equipment services, but usually have a price advantage over other retailers due to their greater purchasing power.
- Catalog and Online Retailers - This category consists of numerous retailers that sell a broad array of new and used sporting goods or accessories via catalogs or the Internet. These retailers typically compete by offering some combination of low prices and shopping convenience. They can offer low prices, due to their lower overhead expenses and often sales tax avoidance, as well as the convenience of shipping direct to the consumer. The Internet has been a rapidly growing sales channel, particularly among younger consumers, and an increasing source of competition within the sporting goods retail industry.
Industry Forecast
Industry Forecast
Sporting Goods Stores Industry Growth
Source: Vertical IQ and Inforum
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