Hiking & Outdoor Equipment Stores in the US Industry Market Research Report from IBISWorld Has Been Updated

Hiking & Outdoor Equipment Stores in the US Industry Market Research Report from IBISWorld Has Been Updated

Hiking & Outdoor Equipment Stores in the US Industry Market Research Report from IBISWorld Has Been Updated

New York, NY (PRWEB) November 24, 2014

Consumer enthusiasm for outdoor activities has increased during the past five years. With per capita disposable income and, in turn, total recreational expenditure expected to increase over the five years to 2014 at annualized rates of 1.0% and 1.8%, respectively, consumers are increasingly allocating more funds for outdoor activities, such as camping and hiking. The Hiking and Outdoor Equipment Stores industry has benefited from this market expansion, with industry revenue anticipated to increase an annualized 1.0% to $ 4.0 billion over the five-year period, including 3.3% growth in 2014.

According to IBISWorld Industry Analyst Andrew Alvarez, “to keep up with demand, nonindustry retailers have expanded their hiking and outdoor equipment offerings during the past five years, boosting direct competition for many industry stores.” This move has forced smaller industry operators to either diversify their offerings, and therefore capture a wider market, or specialize in a particular sport and capitalize on their particular expertise. The heightened competition, combined with a slow recovery during the early half of the five-year period, led to many companies exiting the industry. As a result, the number of players in the Hiking and Outdoor Equipment Stores industry is estimated to decline at an annualized rate of 2.5% to 3,061 in 2014.

Major companies, such as REI and Patagonia, have responded to rising competition by capitalizing on staff expertise and in-house manufacturing capabilities to attract consumers. For example, these companies focus more on in-store events like classes, book signings and movie screenings to bring consumers in to explore their products. Stores have also capitalized on social media and mobile applications to entice shoppers and build consumer loyalty through rewards programs. These strategies have supported rising profitability, which is estimated to account for 4.0% of revenue in 2014.

This industry is highly concentrated, with the top four players accounting for 78.3% of industry revenue in 2014. The decades-old giants in this industry (REI, Patagonia, The North Face and Eastern Mountain Sports) each enjoy strong brand recognition and customer loyalty. “The industry has become more concentrated over the past five years, particularly as smaller players were forced to close shops due to limited financing and low demand during the aftermath of the recession,” says Alvarez. Furthermore, increasing competition from the industry's major stalwarts has exacerbated the overall decrease of industry operators. Consolidation activity also contributed to expanding market share concentration over the five-year period.

Over the next five years, as total recreational expenditure continues to increase, industry revenue is projected to grow 2.9% per year on average to $ 4.7 billion in 2019. Nonetheless, external competition will remain a challenge, as hiking and outdoor equipment becomes increasingly pervasive in other stores. This trend is expected to result in industry consolidation and continued closure of smaller companies. During the next five years, the number of enterprises is forecast to decline an average 0.4% annually to 2,993 in 2019.

For more information, visit IBISWorld’s Hiking & Outdoor Equipment Stores in the US industry report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld

Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld industry Report Key Topics

Retailers in this industry primarily sell hiking and outdoor sports equipment, with a specific focus on camping and hiking supplies. Specialty sports stores, like golf, paddle sport or ski shops, general sports stores and online-only retailers are excluded from the industry.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

©Copyright 1997- , Vocus PRW Holdings, LLC. Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.