Industry Analysis & Industry Trends
Sport and camping equipment retailers have performed well over the past five years. Despite widespread economic uncertainty, industry revenue is expected to grow by an annualised 2.1% over the five years through 2016-17. However, industry operators have faced increasing pressure from external players, such as department stores and toy and game retailers, to match price and product ranges. Heightened competition from pure online players eager to attract a larger share of the industry's market has also negatively affected industry revenue. Therefore, industry operators have been contending with reduced product margins and weaker profitability. Industry revenue is expected to rise by 1.6% in 2016-17, to reach $4.5 billion... purchase to read more
Industry Report - Industry Key Buyers Chapter
The industry's market share concentration is low, with the top four players accounting for less than 40% of total revenue. Concentration has trended up over the past five years due to an increase in acquisitions and the rationalisation of operators. For example, Super Retail Group purchased Rebel and Amart Sports in 2011, followed by Workout World in 2013. These purchases expanded Super Retail Group's store base and revenue streams, strengthening the company's market power across the industry. New operators may be deterred from entering the industry due to the medium level of competition, with players primarily competing on price and product range bases.
Barriers to entry and capital intensity are low, providing avenues for new players to enter and gain a share of the market... purchase to read more