Kärntner sports trade in change: Gigasport closes locations and re -exposed

Kärntner sports trade in change: Gigasport closes locations and re -exposed

In the Austrian retail landscape, it becomes increasingly uncomfortable for sporting goods dealers. Gigasport, a chain from Kastner & Öhler, will drastically reduce your branches by the end of January 2025 by closing four out of a total of fourteen locations. The shops in Leoben, Innsbruck, Spittal and Wolfsberg are affected. This is a clear sign that even established companies are under pressure to adapt to changed market conditions.

The challenges are noticeable for many providers. Hervis, another large player in the sporting goods market, not only reports sales declines, but also had to grant high discounts in order to reduce excess stocks. A recent study by Roland Berger shows that the situation in the bicycle sector is tense, with crowded camps and a continuing price war among manufacturers.

changed market conditions

Christian Tyl, spokesman for the sports dealer in Carinthia, said that the specialist trade has pursued fewer discounts and no extreme pricing policy this year. This could indicate that overcapacities have been sensibly broken down. However, the market remains nervous, and orders are more careful for 2025. "There is hope that the sales and price level will stabilize," said Tyl. A decisive factor could be that manufacturers are reducing their production, which could also influence the pricing policy of online retailers.

In times of pandemic, the industry experienced an upswing with a record sale of 500,000 bicycles per year. In 2023, however, the figures drop to around 420,000, which represents a decline. Despite these numbers, however, there is a stable sales of around 1 billion euros, in particular through the increase in e-bikes and models such as "Jobrad", which score with tax advantages. These developments could slowly give the industry again.

To make up better, there are also personnel changes in the industry. Franz Knoll became the new managing director of Intersport Austria, while Ulrich Hanfeld took over the sole direction of Hervis. Hanfeld states: "We are at a turning point in a rapidly changing market environment." He also carries out a review of the locations to ensure the regional presence and, if necessary, to close inefficient branches.

Hervis has opened six new locations in the past twelve months, including in Voitsberg and Graz. A strategic realignment is planned for the winter season, in which cooperation with the sporting goods industry is intensified when choosing and designing the range.

Another interesting trend is the expansion of skiing offers to which more and more retailers are responding. According to Tyl, the industry will once again have positive expectations after a successful winter season 2023/24. However, a lot depends on the weather conditions, especially on an early snowfall that could boost the Christmas business.

In the light of these developments, it is clear that the sporting goods industry is in a difficult upheaval, but at the same time endeavors to find new ways of stabilization and growth while adapting to the challenges of a changing market.