SIC 5091 Sporting and Recreational Goods and Supplies

SIC 5091

Establishments in this entry are primarily engaged in the wholesale distribution of sporting goods and accessories; billiard and pool supplies; sporting firearms and ammunition; and marine pleasure craft, equipment, and supplies. Establishments primarily engaged in the wholesale distribution of motor vehicles and trailers are classified in SIC 5012: Automobiles & Other Motor Vehicles. Those distributing self-propelled golf carts are classified in SIC 5088: Transportation Equipment & Supplies, and those distributing athletic apparel and footwear are classified in Industry Group 513: Apparel, Piece Goods, and Notions.

NAICS CODE(S)

421910

Sporting and Recreational Goods and Suppliers Wholesalers

INDUSTRY SNAPSHOT

The wholesale sporting goods industry, including apparel and footwear, enjoyed revenues of nearly $50 billion in 2003 up from $45.6 billion in 1998, despite the sluggish economy of the early 2000s. The Sporting Goods Manufacturers Association International (SGMA) expected modest growth of only 1.3 percent in 2004, but that included the lagging sales of sports apparel, which is separate from the this industry category. Still, that meager growth, according to the SGMA, was rooted in excess retail capacity and a decline in selling prices, along with consumers' growing tendency to buy on sale.

The late 1990s and early 2000s were marked by rapid consolidation. Like many wholesale industries, wholesalers of sporting and recreational goods were in a relatively weakened position compared to manufacturers, so instead of competing with their prices, wholesale distributors opted to emphasize value-added services not offered by manufacturers, in an effort to regain a larger portion of the market. Distributors were quickly forced to streamline their operations, most typically using sophisticated information technology, to implement comprehensive brand- and inventory-management and customer-data services for their clients.

Though it drove many smaller players out of the market, this consolidation carried many advantages for the industry. The remaining competitors boasted greater efficiency and the economies of scale and flexibility to adjust to manufacturers' and retailers' heightened demands. These firms served their clients with volume discounts, better financing options, and larger warehouses to accommodate a variety of product lines.

ORGANIZATION AND STRUCTURE

The sporting and recreational goods market is largely seasonal, requiring manufacturers to deliver product lines in a timely fashion in order to take advantage of the limited period of demand for many products. According to a 1997 survey of sporting goods buyers by Sporting Goods Business magazine, almost 75 percent of the buyers surveyed were buying closer to the selling season, rather than overstocking products during the off-season.

Because of the wide range of sports and other activities...

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