Sports Authority demise leaves hole in industry sales
05/12/2016
One of the factors that may lead to weaker sales at the end of 2016 and start of 2017 than a year ago is that US retail group The Sports Authority (TSA) filed for bankruptcy protection in March 2016. Dick’s Sporting Goods acquired the TSA name in June 2016, but all its existing stores were closed before the end of August. “Much of the TSA business has simply evaporated,” Matt Powell said. “This has had a deep impact on the sports industry as a whole.”
Mr Powell also pointed to a slow early sales in the winter sports category owing to “delayed” winter weather in North America. With the weather turning colder recently, he predicted that some of the sales volume can be made up, but suggested this may come “at the expense of profits”.
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