Sunday, February 5, 2023

Sports stumbles in the US and sees reduced revenue in 2022 despite price hikes

The game falters in its run in America. Price increases across all categories have failed to offset declines in sales volumes, and the sector’s turnover is down by as much as 10%, according to NPD Group data through September collected by McKinsey and Wfsgi.

sports fashion category Outdoor has been the only one to bear the brunt in the first nine months of 2022, up by 0.2% to $17,700 million, The slight increase was due to the fact that average selling prices increased 5%, while volume sales declined 4.5%.

“The fact that consumers feel safe while doing outdoor activities has given a boost to the category Outdoor to the detriment of indoor sports such as swimming,” says Matt Powell, Senior Sports Industry Consultant NPD Group.

Experts partially attribute the decline in sales of other sports fashion categories to the closure of sports facilities due to the increase in electricity.

In fact, sales of sportswear (which the consultancy calls active wear), despite the fact that the average price increased by 3.5%, contracted by 3.9% as of September, while Sports footwear plunged its earnings 6.1%, weighed down by a lower 2.1% increase in average selling pricesAnd a massive 8% drop in volume.

Decline driven by lower consumer demand and shift to direct-to-consumer distribution, “which has not been profitable for some brands,” the report explains. The increase in stock has also led to an increase in promotion, which hasn’t helped the increase in sales.

Cycling products too saw their business shrink by 10% in the first nine months of 2022, while team sports managed to scratch 2% business due to a price hike.

“After the post-Covid-19 recovery, sporting goods companies have been caught on a roller coaster, with some companies exceeding pre-pandemic levels, the past few months have marked a renewed surge,” Powell said. presented challenges.”

According to McKinsey, 2023 will not be a positive year for sports in the United States either. “Given the poor performance of the categories and the potential for continued challenges, the 2023 trajectory will be uncertain.”

Nation World News Desk
Nation World News Desk
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