Rapid growth of e-commerce, significant competition, and market saturation will continue to drive consolidation in the outdoor and sporting goods retail industry. Innovative companies are commanding attention from corporate and private equity buyers, with the market ripe for acquisition activity.
Highlights Include:
Secular trends continue to drive individuals to the great outdoors. Motivation for participation range from desire to improve overall health and wellness, spend time with friends and family in a rural setting, search for a release from the pressures of a stressful job, “disconnect” from a technology-infused lifestyle, or simply reconnect with mother nature.
U.S. adoption of the Trans-Pacific Partnership is expected to be a boon for Asia-Pacific exporters and U.S. importers on a variety of consumer goods.
Large strategic buyers are acquiring leaders in niche markets to enhance authenticity, expand product offerings, boost market share, and benefit from supply chain and sales channel efficiencies.
Recent M&A trends have shown strategic buyers being aggressive in adding-on complimentary brands. The outdoor recreation industry is exceptionally dynamic and is in the midst of a renaissance driving rapid growth in certain niches and substantial technological innovation resulting in strong top line sales and brand consolidation over the past decade.
