Sports retail is one of the most important sub-sector of the sports industry. Many would argue that the entire industry makes the majority from this sector alone, and considering that its market size is above $50 billion in the US alone, it’s hard to argue with that.
However, despite the growth it has received in the past few years, opening a sports retail store is still pretty challenging, especially now that there are new problems brought upon by the pandemic. Furthermore, opening a sports retail can be doubly challenging if it’s your first time doing it. This article will cover the necessary things you need to know about the sub-sector and various ways to solve current problems in the sports retail sector this year.
Here’s a fact for you, online retail stores had drastically increased last year, and it continues to grow this year. It experienced a staggering 39% increase in revenue, a percentage that was unheard of many years ago. Additionally, 255 million Americans shop online regularly. That’s more than half of the entire population.
This trend is the same for sports retail. Many sports retailers have abandoned their brick-and-mortar stores to gamble in the online market, and the gamble was worth it. Many online sports retailers have received an increase in sales, and they are expecting to get their ROI within three years, less than the five years that physical retail shops usually have.
If you’re planning to open your very first sports store, you don’t need a physical shop to do it. Instead, go online and join the e-commerce market. You’ll have competitive prices because you no longer have to pay for rent or other expenses. Instead, you can invest all of that into your online sports store.
Have Access to Multiple Manufacturers
There has been a lack of supply lately because of the pandemic. Material and workforce shortages are fairly common regardless of the industry you are in. Still, experts believe that it has the most impact on industries that rely on manufactured goods, such as the retail industry.
Despite earning trillions of dollars last year, the retail industry is struggling with the lack of goods, and many believe that this will lead to a decrease in revenue this year. This can certainly be true for retailers that only have one dedicated manufacturer. Thankfully, you are in the sports industry, where there are hundreds of brands you can contact.
There are many reasons you want multiple brands from different manufacturers in your store. One of these reasons is that you can give your consumers options. The more options they have, the more likely they’ll purchase something in your store. Another reason is that consumers can compare products with each other. This is because certain brands are better than others when it comes to a particular sport.
For example, Nike and Addidas have been known to dominate the basketball shoe market, but nothing comes close to the great design of the Mach1 series from Tecnica when it comes to ski boots. Sure, Nike and Adidas might have ski boots, but the design from Tecnica is vastly different from theirs. This is just one example of how brands can be preferred over others when it comes to sports.
Another reason you want to have multiple manufacturers from different brands is that it gives you new options for supply. You can use this to address the supply shortages that the retail industry is experiencing this year.
Point of Engagement is Key
Getting key target audiences engaged in your store is important than getting them to buy products from you. Don’t get confused. Consumers buying products from your store is still important, but you want to convince them that your products and store are a lifestyle choice, not just a place to purchase something. If you’re planning to have a physical store, hires some trainers to do yoga inside your store.
If you’re in the online market, run surveys or quizzes for the sports industry and give appropriate rewards to those who get the answers right. These are just a few ways you can engage consumers in different mediums. Remember, make your store a lifestyle choice, not just a store where people purchase sports goods.
Lastly, sustainability and recycling are key to every retail store nowadays. Global warming is a problem, and it’s a problem that we had way before the pandemic even hit us. Sadly, the sports industry contributes much to this problem, but the industry and its manufacturers are doing something about it.
For example, brands like Nike create sneakers from recyclable trash, and Under Armour is innovating into more sustainable ways to manufacture their products. As a retailer, all you have to do is sell and promote these sustainable initiatives in your store. This can drive more sales while helping the environment.
The sports retail sector had its own share of problems many years ago, but nothing like the one we have today. But by following these tips, you can grow your store like never before you. Furthermore, you should start a sports retail store that is competitively ready in the market.