The retail sporting goods industry comprises major national retailers (Dick’s Sporting Goods, Bass Pro Shops, Cabela’s), regional players (Big 5 Sporting Goods, Academy Sports), and mass merchants (Walmart, Target) that sell sporting/athletic goods and firearms, including: hunting and fishing supplies, camping equipment, marine/boating equipment, shooting-sports products, ammunition, athletic footwear and apparel, and accessories.
Sporting goods sales in the U.S. amount to more than $45 billion annually. However, the sector has seen significant consolidation in recent years. In 2017, Bass Pro Shops acquired Cabela’s and Gander Mountain filed for bankruptcy and closed most of its stores, with Camping World purchasing the leases on prime locations (to be operated as Gander Outdoors). This comes on the heels of the closure of MC Sports in 2017, The Sports Authority and Sport Chalet in 2016, and City Sports in 2015. Industry revenue is forecast to continue growing through 2022, as rising health consciousness and per-capita disposable income spur demand. But as with most brick-and-mortar retail, the industry faces tough competition from online retailers, particularly Amazon, as well as mass merchants.
Great American has liquidated hundreds of stores within this industry and appraised a number of major retailers within the sector. Our team of professionals will go beyond valuing physical inventory to include business intangibles, such as customer lists, brand names, trademarks, domain names, and any patented technology. We’ll factor in customer demand by looking at sales figures for comparable stores, as well as discounting levels and any changes in the store base (openings or closings).