Sporting Goods Stores Hit Slump Essay

778 Words Mar 22nd, 2016 4 Pages
Over the past few years, there has been a steady increase in the number of individuals who have been involved in athletics. Due to this growth, it was expected that the number of sales in sporting goods would also increase. To the dismay of the traditional sporting goods industry, sales have actually dropped, according to Sara Germano’s article, “Sporting Goods Stores Hit Slump,” published on March 9th of this year. With this decrease in sales, some companies are trying to adopt new sales marketing schemes or adjust share earnings, whereas others face the unavoidable pressure of closing stores.
According to Performing Sports Group Ltd., the plummet in sales is a result of the “sudden shifts in demand” (Germano). There have been two different shifts in demand in varying sections of the sporting goods market: traditional in-store and online shopping (specialized sporting goods stores) and nontraditional online shopping (non-specialized retailers such as Amazon and eBay). The demand for products purchased traditionally has shifted to the left, while the demand for products purchased through nontraditional retailers has shifted to the right. The cause of these demand shifts rises from the differences in incentives. The incentives for consumers to purchase sporting goods via shopping through stores, such as Dick’s Sporting Goods, Sports Authority, and Performance Sports Group, are inferior to those of the nontraditional retailers. An increase in the number of producers in the…

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