Opportunities in 2025
The sporting goods industry is facing an exciting year 2025, characterized by innovations, challenges and new opportunities. While the pandemic presented the industry with unfamiliar challenges, the market has now stabilized. The ongoing fitness and health trend and the slow penetration of online retail continue to offer growth potential.
Established online retailers are also trying their hand at brick-and-mortar retail. However, large chains dominate the market, while small retailers face particular challenges.
Many retailers face difficult tasks
New trends such as smart sportswear, specialized stores and holistic fitness apps are shaping the future of the industry. Large chains such as Sport 2000, Intersport and Decathlon dominate the market, while medium-sized full-range retailers and small retailers are struggling.
As the Handelsblatt describes it, many stores had to close during and after the coronavirus pandemic despite high demand. Supply chains were disrupted, leading to full warehouses and insolvencies. The market has since calmed down and stock levels are returning to normal. Sport 2000 was able to increase sales slightly and expects a further improvement by 2026. The industry is benefiting from the ongoing fitness and health trend as well as the slow establishment of online retail.
Map: Sports retail locations/NexigaTopshops
The trend towards fitness and health remains strong and supports the industry as a whole. Online retail is experiencing slower than expected penetration, which is favoring brick-and-mortar retail. Many retailers are focusing on specialized stores, e.g. "Absolute Run" for running. Brands such as Adidas are benefiting from targeted specialist retail, while Nike is struggling and is attempting a turnaround in this segment with a new CEO.
Challenges in the industry
Small retailers in particular are facing several challenges in order to remain competitive and maintain their market position:
- Large chains have more resources to adapt to changing market conditions.
- While large retailers rely on specialized stores, small retailers often find it difficult to focus and offer a wide range of products.
- Small retailers are more affected by supply chain disruptions and have less scope to manage stock levels.
- The slow breakthrough of online retail offers opportunities, but small retailers often do not have the means to invest in digital infrastructure.
- Big brands such as Nike, Adidas, Puma, Asics and Lululemon often favor larger retailers, which makes it difficult for small retailers to obtain coveted products.
Even retailers with a purely online strategy are once again experimenting with bricks-and-mortar retail. Bicycle manufacturer Canyon from Koblenz, for example, is set to open its first store in Munich.
Current trends for the sporting goods industry
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App growth: An increase in holistic fitness apps that record activity and health data and offer personalized training and nutrition plans is expected.
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Smart sportswear: The first mass-produced products in the field of smart sportswear will be launched on the market. The clothing is equipped with technology such as sensors to record information about movement, for example.
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Community programs: Sporting goods manufacturers will increasingly rely on community programs that turn silent participants into engaged members.
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Athleisure clothing: The trend towards athleisure clothing will continue and the boundaries between sports and fashion brands will become increasingly blurred. The market leader here is Lululemon with yoga and fitness clothing.
These key trends show that the sporting goods industry continues to innovate and adapt to meet the changing needs of consumers.
Large chains in competition
Our map (PDF) shows the nationwide distribution of the Decathlon chain and the intensity of competition in relation to its competitors Sport 2000 and Intersport. The source is the Nexiga Topshops. The intensity was calculated using a gravity model based on the fine-spatial Micro postal code with Marktanalyst Pro, the desktop solution for spatial issues based on ArcGIS Pro. Areas with good coverage (= spatial proximity) by the two competitors receive a high score.
Competition is generally strong in the vicinity of Decathlon locations. One exception is the Singen site, where proximity to Switzerland is an important location factor.
Use of points of interest
With the current Nexiga Topshops, markets can be comprehensively analyzed, success factors identified and location advantages exploited. As a chain store owner, founder or marketing and sales manager, you can use selected facts to determine and evaluate the opportunities and risks of your new or existing location. Not just for the sporting goods industry.
They can be used as a valuable and up-to-date database for the comprehensive evaluation of locations and for detailed competition analysis. Sales hotspots and consumption centers can be derived from their spatial distribution.
Competition is generally strong in the vicinity of Decathlon locations. One exception is the Singen site, where proximity to Switzerland is an important location factor.
