Add a New Bears Reason

Company: Big 5 Sporting Goods (BGFV)
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1 votes

  Declining economy contracts consumer spending

Consumers save more and spend less during an economic downturn. For example, in Q2 2008, same-store sales fell 7.6%, the company's worst quarterly sales in over a decade. With forecasts of consumer spending looking grim into 2009, the worst may not be over yet for Big Five and we may see their sales decline even further during the year.

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2 votes

  Declining sunday readership forces Big 5 to alter its advertising methods

Declining sunday readership forces Big 5 to alter its advertising methods- between 2000 and 2006, sunday readership of newspapers has declined by over 10.5%. As a result, it is becoming increasingly more difficult for Big 5 to reach its customers. Since most of its promotional advetisements drive store traffic, less readership may lead to less traffic and thus less revenue for BGFV.

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