Competition
Hibbett operates in rural areas, so its main competitors are not large sporting goods chains like Dick's, Big 5, or Sports Authority, but rather local independent sports shops. Also, about a quarter of Hibbett stores are situated near a Foot Locker. As a retailer of fully priced products, Hibbett has access to high-end products, such as Oakley sunglasses and $120Nike shoes, that some of the smaller stores nearby do not.
Hibbett is part of an industry where the top six sporting goods retailers comprise only 20.6% of the $53.7 billion market.[1][2][3][4][5][6][7]
Presently, there are only four major, publicly traded sporting goods retailers: Dick's Sporting Goods, Hibbett Sports, Sport Chalet, and Big 5. Hibbet's main competitors in the sporting goods market are:
- Dick's Sporting Goods: Dick's Sporting Goods is the nation's top sporting goods retailer and operates 340 stores in 36 states. The company sells a wide range of sporting equipment and apparel, and also runs Golf Galaxy and Chick's Sporting Goods chains.[8]In 2007, Dick's generated $3.89 billion of revenue, of which $1.16 billion yielded into gross profit.[9] Its gross margin in 2007 is therefore 29.8%.
- The Sports Authority: The Sports Authority boasts over 400 stores in 45 states and offers a large spectrum of athletic equipment and gear.[10]
- Academy Sports & Outdoors: Academy operates just under 100 stores throughout the South and Southwest regions of the U.S. The company offers apparel and equipment for outdoor activities such as camping, hunting, fishing and boating.[11]
- Recreational Equipment, Inc. (REI): REI operates about 90 stores and, like Big 5, runs mostly in the Western half of the U.S. The company sells mostly apparel and equipment used for hiking, climbing, kayaking and other outdoor activities.[12]
- Big 5 Sporting Goods : Big 5 operates 363 stores, each averaging around 11,000 square feet, in 11 states. The company opens stores in relatively small metropolitan and suburban areas, especially important in the sparsely populated western states that are Big 5's focus. In 2007, Big 5 sold over $898 million in products, for a gross margin of $309 million.[13]
In terms of market share, Hibbett lags behind five sporting goods businesses:
The US sporting goods market for equipment, footwear, and apparel was estimated to be $35.78 billion to $44.4 billion in 2005.[19]
Introduction and Overview | Trends and Forces | Competition
References
- ↑ DKS 2007 10k, Item 6:Selected Consolidated Financial and Other Data, pg. 24
- ↑ Hoovers:The Sports Authority Information
- ↑ Hoovers:Academy Sports & Outdoors Information
- ↑ Hoovers:REI Information
- ↑ BGFV 2007 10k, Item 6:Selected Financial Data, pg. 19
- ↑ Hoovers:Hibbett Sports Information
- ↑ Needham Initiate 03/10/08:BGFV
- ↑ Dick's Sporting Goods (DKS)
- ↑ DKS 2007 10k, Item 6:Selected Consolidated Financial and Other Data, pg. 24
- ↑ The Sports Authority:About us
- ↑ Dick's Sporting Goods (DKS)
- ↑ Dick's Sporting Goods (DKS)
- ↑ BGFV 2007 10k, Item 6:Selected Financial Data, pg. 19
- ↑ Google Finance Dick's financials
- ↑ Hoovers Sports Authority financials
- ↑ Hoovers Academy Sports & Outdoors financials
- ↑ REI 2008 Financial Statement to Members
- ↑
- ↑ Humphreys, Brett and Brad Humphreys. "The Size and Scope of the Sports Industry in the United States." North American Association of Sports Economists. August 2008, page 33
