Cutting excess inventory is the “key challenge” for sports goods retailers this year, alongside managing purchase costs in the future, new research has revealed.
According to the 2023 RetailX Global Sports Sector report, the balance between supply and demand is “delicate”, with the “latter picking up at any point across the year or even collapsing further”.
Another challenge for retailers including Nike, Adidas and Gymshark will be to keep “brand interest alive, investing in marketing, new products and services.
Click here to download the 2023 RetailX Global Sports Sector report.
As a result, many sports brands see Gen X, Y and Z as key fashion sports consumers since they are more likely to buy what they want to be ‘on trend’ regardless of the price.
The report stated: “For sports goods retailers, having offerings that make them appealing offers new ways to both manage costs and attract new customers.”
However, the reason for this stalling growth in sports can be firmly placed at the door of high inflation leading to falling consumer confidence.
“Inflation has grown significantly across the world, fuelled by the impact of rising energy costs as a direct result of the Russia-Ukraine war. This rise has been most pronounced in Europe, largely due to many of its economies being reliant on Russian oil and gas.
“Asia, too, has seen surges in inflation, with levels hitting ten-year highs in 2022. This has led to an unprecedented fall in consumer confidence, which has impacted spending across all retail sectors,” the report concluded.