Sports goods ‘a tricky space’
Johannesburg, Gauteng, SA - Branded sports goods are a tight and tricky space at the moment. There are various factors – all the usual ones plus, in our case, emigration, because those are the LSMs who can afford those products.
Of course, we negotiate with our principals to get best prices, but they are international brands, and the exchange rate makes things worse.
Our business is very seasonal – basically January to April, the back-to-school period. I would guess that school children make up 80%-90% of our market. The club market, in most sports, has declined.
I think that because prices have risen as much as they have, many kids are getting a combined birthday and Christmas present – a cricket bat, say.
Another factor is that a few chains – Totalsports, Mr Price Sport, Makro – have probably over 500 doors, so apart from the small number of really good independents, there’s not much space for other retailers to get into sports goods.
My guess is that over time the number of brands in South Africa will reduce and that there will be less choice. Nonetheless, we have no intention of quitting.
