Gigasport closes four branches: Effects on the sports trade

Gigasport closes four branches: Effects on the sports trade

The challenges in sporting goods trade are increasingly putting retail under pressure. In a significant step, Gigasport announced that four of his 14 locations will close. This applies to the branches in Wolfsberg, Spittal/Drau, Leoben and Innsbruck, which close their doors at the end of January 2025. The measures are part of a comprehensive restructuring of the company, which also results in a reduction in around 100 jobs.

As Gigasport explained in an official message, the past few years have been extremely challenging for trade, especially for the sporting goods area. The industry is struggling with the consequences of coronapandemia, an energy crisis and a stagnating economy. In addition, the bankruptcy of the Sport 20000 group had negative effects on giga sports last year. Since the sales boom during the corona crisis, retail has been on a large number of non -sold stocks, which further exacerbates the situation.

Special challenges of the industry

The sporting goods market has changed clearly. In 2023, sales in the industry dropped by 4.4 percent, which led to a total volume of 2.28 billion euros. This decline is partly due to the fact that many dealers fight with overcrowded camps due to the previous wave of buying. Cycling in particular suffered significantly after the boom during the pandemic, which led to a precarious situation for many companies.

In addition to the branch closures, the company will also bring cost -reducing measures to the table in order to reduce the financial burdens. The closings and austerity measures are part of a broader reaction to the ongoing crises in the industry. This decision had to be made to ensure the economic stability of the company and to put it on a more sustainable basis.

The market for sporting goods not only suffered from pandemic. The general economic uncertainty, coupled with increasing energy costs, has hit many companies in this sector. The pressure on the profit margins is noticeable, which has caused Gigasport to take these drastic steps to ensure its future. More details on this topic can be found in a detailed report on www.vol.at .