Thursday, October 18, 2018

Summer approach raises forecast for sporting goods sales

With a possible gradual elevation of temperatures in coming months and the arrival of holidays, the sporting goods industry prepares for the demand of consumers interested in practice more outdoor physical activities. One of the examples of players of this sector that sees a rhythm more intense sales operations is the Decathlon network. "From the middle of the year the trend is accelerating, with growth in sales volumes of bicycles by as much as 20%," said brand manager b'twin of Decathlon, Marcello Toshio. According to the Executive, the fourth quarter has an advantage to join the weather conditions spring and summer with the children's day and Christmas. For him, the biggest commercial drive must also occur in accessories that are part of the practice of cycling. "At this time, for example, practitioners of moutain bike seek complementary items, such as hydration bottles, locks, bagajeiros, helmets and blowers tyres," said the Executive. In this sense, Toshio recalls that the sporting goods network is in the process of readjustment in the form of shops, traditionally with over 2,500 m ². "In November, we're opening a leaner unit with 1,300 m ² in the city of Mogi das Cruzes. This is a pilot project that aims to be in regions with a maximum of 140,000 inhabitants ", he declared. Asked how the move might affect the portfolio format available in the new model, Toshio said that the Decathlon – before starting operations – conducted an analysis of data in government agencies and in traffic on the online platform sports practices in the region. "This project will allow for slimmer act more assertively," he argued. "We can't have all models of bike within those leaner business. So, be aware of local public profile is important, "he added. In addition, the Executive recalls another strategy adopted by the retailer recently: investment in the site and in the concept of omnicanalidade, even in light of the change in the logistics of smaller stores. "We have worked our online platform as an invitation to customers meet the product in the physical store," said Toshio, mentioning the fact that, conventionally, consumers test products in the shops of the Decathlon. Currently, the network has about 25 stores in Brazil; only the State of São Paulo concentrates 14 units. According to the surveys of the market research firm NPD Group Brazil, selling shoes and sports clothes moved-in the first half of 2018-R $13.1 billion. Compared to the same period last year, the increase was 5 percent. Focus on paraphernalia For the CEO of the retail consultancy Goakira, José Carlos Fugice, high temperatures causes "people start taking the parts of the wardrobe and feel the need to renew equipment, buy a running shoe. On the other hand, when the weather is cold, the rain, the movement is the same. " In line with the positioning of the Decathlon, Fugice says that the strategy of composition of accessories "is fundamental to the retailer make your average ticket and the contribution margin". According to him, this contribution margin will help to pay the fixed costs of the business. "There are several items that are created in order to meet the needs of customers or even create a sense of momentum in the purchase," said Fugice. Following the line of reasoning of Fugice, the founding partner of the consulting firm ba} Stockler, Luis Henrique Stockler points out that the sale of accessories just compensating for the lower average ticket of items meant for the summer, compared to winter. "The sale of these extra high volume equipment ends up preserving the margin of the shopkeeper and generating greater profitability for the business," said
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