The June 2020 COVID-19 Industry Impact Survey analyzes industry response to pandemic
SILVER SPRING, MD (July 23, 2020) – Seventy-two percent of companies now anticipate that sales will not return to pre-COVID numbers until 2021, and 53 percent report not until Q2 of 2021, according to the SFIA 3rd edition of its monthly COVID-19 Industry Impact Report, released today. The expectation for sales to bounce back has been postponed, likely due to recent announcements regarding elementary and secondary schools not meeting in person in the fall of 2020. Notably, from a different perspective, the number of companies projecting their 2020 fiscal year sales to be greater than 2019 has doubled from May to June, from 10 percent to 21 percent.
June provided the industry with some hope, as 68 percent of companies saw month-over-month sales increases from May to June, with 38 percent of companies increasing 26 percent or more in sales. Ecommerce has remained steady, but it is not absorbing all potential sales. While more than half of ecommerce sales have gone up from May to June, and growth is expected to continue, ecommerce will not be able to compensate for all loss.
The pandemic will change the industry landscape as we know it. Nearly 59 percent of respondents believe consolidation will be the emerging market trend post-pandemic.
“We are happy to see sales going up, but the pandemic is far from over,” said Tom Cove, CEO and President of the SFIA. “Many individuals and families have adapted to new activities and sought out fitness equipment and outlets that let them participate under stay-at-home orders. However, until we can get kids back in schools and back on the field, our industry will have to be innovative in its approach to helping Americans stay active and healthy on a regular basis. The pandemic will make everyone be more creative, and we anticipate seeing new innovations that will stem from this situation.”
Return to play expectations were more optimistic in May, but dropped in June, as many states saw surges of the virus after reopening too quickly. A vaccine is now considered “absolutely essential” for 41 percent of respondents, when questioning return to play protocol. As for gyms and studios, expectations have also changed. In May, only 4 percent of respondents expected gyms to not open until November/December 2020, and in June, that number jumped to 23 percent. Many facilities are now open, but for those that aren’t open yet, there seems to be more of a push to open at the end of the year or in 2021. The importance of a vaccine for reopening gyms has greatly increased, and 91 percent of respondents believe a mask requirement is most important to reopening. Regardless, gyms are expected to open before the return of youth sports.
To download the full SFIA COVID-19 Industry Impact Report – June 2020, click here.
Youth sports, health clubs, personal trainers & outdoor recreation organizations join SFIA in promoting consumer-driven economic stimulus
SILVER SPRING, MD (July 14, 2020) – In response to the economic damage, caused by COVID-19, on the active lifestyle industry, the Sports & Fitness Industry Association (SFIA) is launching a campaign to promote the Personal Health Investment Today (PHIT) Act (H.R.1679/S.680) as consumer-driven economic stimulus. SFIA joins its active lifestyle partners in the youth sports, health & fitness and outdoor recreation arenas in pushing for the inclusion of PHIT in the next COVID relief package. The campaign will include three components: outreach to congress by SFIA members and others, a social media campaign around #PassPHIT4_____ and a virtual advocacy day on July 22, 2020 hosting virtual meetings with congress.
Youth sports, health clubs, fitness studios and much of outdoor recreation were early casualties of the economic shutdown and stay-at-home orders. Under the circumstances, many of these businesses and organizations are struggling to survive in an ever-changing COVID landscape. Ironically, the active population has far better prognoses and are at lower risk of experiencing the more severe symptoms of COVID-19 than the inactive population. With the additional strain COVID-19 has placed on our healthcare system, it is critical to promote health and physical activity; and without the active lifestyle industry, the American population will suffer.
PHIT would incentivize health by providing a 12 to 35 percent discount on physical activity expenditures through the use of pre-tax medical accounts. Youth sports costs, health club dues, outdoor recreation fees, sports and fitness equipment, and other expenses directly related to active lifestyles would be eligible for payment using an HSA or FSA. Currently, HSA/FSA account holders can pay for treatment of disease with their pre-tax money, but not for prevention via physical activity. PHIT is widely bipartisan, with more than 100 supporters in congress, split evenly along party lines.
Similar to the hospitality industry, the Paycheck Protection Program (PPP) does not help the active lifestyle industry, due to the payroll requirements for loan forgiveness. The industry relies on seasonal employees and part-time help to run leagues, tournaments, outdoor adventure expeditions, fitness classes, competitions and other forms of physical activity and recreation. Encouraging investment in these industries will help sustain them in short term and provide a platform for a healthier America moving forward.
The youth sports industry is promoting “The COVID-19 Youth Sports and Family Relief Act” (H.R.7562) to address the PPP problem using participation rates for forgiveness. The bill includes the PHIT Act to help families with youth sports costs as the country emerges from COVID. Youth sports is the foundation for active lifestyles and crucial to the future health in America. SFIA is coordinating with youth sports and other active lifestyle industries on a social media campaign during July as part of the PHIT advocacy effort. For more information on PHIT and the campaign to include PHIT in COVID stimulus, please visit www.PassPHIT.org.
SILVER SPRING, MD (June 23, 2020) – The Sports & Fitness Industry Association (SFIA) 2020 Single Sport Reports for all fitness activities are now available. The 24 individual fitness activity reports provide detailed analysis, showing year-over-year trends, and breakdown of participation by a multitude of demographic variables. The most popular fitness categories, boasting 50 to 100+ million participants, all increased in participation in 2019 – Treadmill (5.7 percent), Running/Jogging (1.2 percent), Walking for Fitness (0.4 percent) and Free Weights – Dumbbells/Hand Weights (0.3 percent). In addition, traditionally “niche” fitness activities are growing significantly. These activities include Yoga (6.0 percent), Barre (3.8 percent) and Stationary Cycling – Group (5.3 percent); which, in addition to reflecting healthy growth in 2019, also indicate they have been growing over the last five years.
“Participation rates for fitness activities have been strong and consistent,” said SFIA CEO & President, Tom Cove. “The fact that participation in nearly every category increased in 2019 reflects the breadth and importance of fitness in the United States. These reports provide readers with an unparalleled understanding of each activity on an individual basis, whether it be yoga, weightlifting, HIIT (high intensity training) or dance.”
“The fitness segment was robust going into 2020, and while the pandemic is deeply impacting the health club industry, all indications suggest home fitness activities and product sales will skyrocket this year under COVID-related restrictions,” Cove added.
Each report tracks participation as defined by gender, participation frequency, age, geographic region, market size area, income, education level and cross-sport/activity participation. The following 24 fitness reports are now available:
· Aquatic Exercise
· Barre
· Boot Camp Style Training
· Calisthenics
· Cardio Kickboxing
· Cross-Training Style Workouts
· Dance, Step & Other Choreographed Exercise to Music
· Elliptical Motion Training
· Free Weights (Barbells)
· Free Weights (Dumbbells/Hand Weights)
· High Impact/Intensity Training (HIIT)
· Kettlebells
· Pilates
· Rowing Machine
· Running/Jogging
· Stair Climbing Machine
· Stationary Cycling (Group)
· Stationary Cycling (Recumbent or Upright)
· Swimming for Fitness
· Tai Chi
· Treadmill
· Walking for Fitness
· Weight/Resistance Machines
· Yoga
Results for the 2020 SFIA Single Sports and Fitness Reports were gathered by Sports Marketing Surveys USA, using the US Online Panel operated by IPSOS to conduct 18,000 dedicated online interviews in a nationwide sample of individuals and households during the 2019 calendar year.
All 2020 SFIA Single Sport and Fitness Participation Reports are $99 (per report) to all current SFIA members and $295 for non-members. More information about these reports can be found by clicking here.
May 2020 Survey Analyzes Industry Response to COVID-19 Environment
SILVER SPRING, MD (June 18, 2020) – The Sports & Fitness Industry Association (SFIA)released the 2nd edition of its monthly COVID-19 Industry Impact Report, addressing financial impact, industry response and future projections amid the pandemic. Though most product categories reflect considerable decreased sales year over year, 56 percent of respondents reported sales growth from April to May 2020.
Companies are working to conserve cash, except when it comes to e-commerce. Over 50 percent of respondents have increased investments in their company’s website since the pandemic began, and 36 percent have invested more in digital and/or mobile advertisements. Over the last month, there has been marked improvement in distribution and fulfillment center supply chain. This has been critical to support high demand for e-commerce sales.
When asked about the expectation for “some semblance of a return to pre-pandemic sales,” 60 percent of the industry projects sales to return to pre-COVID-19 numbers in 2021 or later.
“The industry is being challenged right now, but we are finding several pockets of hope,” said Tom Cove, CEO and President of the SFIA. “Amid the stay-at-home orders, companies shifted quickly to adapt business operations and marketing strategies. They focused their energy on e-commerce, and worked to maintain accessible and relevant communications with their consumers. They also prioritized product that could be used on an individual basis and at home to keep sales afloat. Our industry has proved to be resilient over the past few months. At the same time, it’s tough out there and no one sees the road back as easy or quick.”
The survey found the industry was more optimistic about a return to play for youth sports in May than they were in April. Eighty percent of respondents believe youth sports will be back by September- October, effectively the start of the 2020-21 school year. In contrast, health clubs and fitness studios are anticipated to be open by July-August 2020. Respondents indicated they felt availability of a COVID-19 vaccine will play a more critical in the return to youth sports than the reopening of gyms and studios.
To download the full SFIA COVID-19 Industry Impact Report – May 2020, click here.
Monthly Survey Measures Change Through Pandemic Response
SILVER SPRING, MD (May 21, 2020) – The SFIA COVID-19 Response Survey confirms dramatic, unprecedented revenue drops across the sports and fitness industry, while indicating select product category surges. With the onset of COVID-19, much of sports retail business stopped almost immediately, with corresponding impact on brands and manufacturers, unlike anything the industry has ever experienced. Over 70 percent of sports and fitness manufacturers and businesses reported a sales drop of over 25 percent for the month of April (comparing April 2020 sales to April 2019 sales), with 30 percent of respondents reporting a sales drop of over 75 percent. However, there were pockets of strength: home fitness equipment and at-home sports equipment sales grew in same period.
“It is not news that the pandemic struck our industry hard,” said Tom Cove, President & CEO of SFIA. “But the immediacy and magnitude of the decline of sales across so many categories was dramatic. That said, this survey does identify hopeful signs, especially in the confidence respondents showed in predicting increased sales in the second half of this year. We will conduct this new survey on a monthly basis to identify what is working and track how the industry is evolving.”
Eighty-one percent of respondents indicated that they experienced disruptions in their supply chain. With regard specifically to fulfillment and distribution centers, respondents characterized such disruptions as “moderate” rather than “severe.” SFIA will monitor this closely in the future, as “shelter in place” regulations in many states may prove a constraint to full staffing of these locations. This is important as the positive elements of sales indicated in the survey were weighted to the ecommerce channel. Near term sales trends will likely continue to be heavily reliant on one’s ability to connect virtually with the customer.
The survey also explored “return to play” projections. The industry believes fitness will be the first to come back, with a majority seeing fitness clubs and boutiques to return in the next one to three months. Team sports, according to the survey, are perceived most likely to return in the fall. In both fitness and team sports, a minority (8-20 percent) expects no return until 2021.
To download the full SFIA COVID-19 Industry Impact Report – April 2020, click here.
SILVER SPRING, MD (May 18, 2020) – The Sports & Fitness Industry Association (SFIA) has released the first collection of its 2020 Single Sport Reports, including 23 individual sport reports in the team sports category. These reports provide a detailed analysis and breakdown of participation by various demographics, and by specific sport or fitness activity.
“Team sports participation in 2019 indicated countervailing trends,” said SFIA CEO & President, Tom Cove. “While only 7 of the 23 team sports that we track increased in participation, the team sports category, as a whole, increased in participation due to significant increases in traditional team sports, such as basketball, outdoor soccer and volleyball. Our Single Sport Reports allow businesses and organizations to gauge the health of each sport through a deep dive into the critical factors that influence each sport’s growth.”
Each report tracks participation as defined by gender, participation frequency, age, geographic region, market size area, income, education level and cross-sport/activity participation. The following 23 team sport reports are now available:
• Baseball
• Basketball
• Cheerleading
• Football (Flag)
• Football (Tackle)
• Football (Touch)
• Gymnastics
• Ice Hockey
• Lacrosse
• Paintball
• Roller Hockey
• Rugby
• Soccer (Indoor)
• Soccer (Outdoor)
• Softball (Fast-Pitch)
• Softball (Slow-Pitch)
• Swimming on a Team
• Track & Field
• Ultimate Frisbee
• Volleyball (Beach/Sand)
• Volleyball (Court)
• Volleyball (Grass)
• Wrestling
Results for the 2020 SFIA Single Sports and Fitness Reports were gathered by Sports Marketing Surveys USA, using the US Online Panel operated by IPSOS to conduct 18,000 dedicated online interviews in a nationwide sample of individuals and households during the 2019 calendar year.
All 2020 SFIA Single Sport and Fitness Participation Reports are $99 (per report) to all current SFIA members and $295 for non-members. More information about these reports can be found by clicking here.
SFIA Releases 2020 State of the Industry Report
SILVER SPRING, MD (May 6, 2020) – The sports and fitness industry performed well across multiple sectors in 2019, according to the Sports & Fitness Industry Association’s annual State of the Industry Report released today. In 2019, the industry grew 3.9 percent in one year, representing the largest annual growth in 17 years.
The report consolidates data and analysis on product sales, industry trends, and sports and fitness participation rates.
“Given the dramatic downturn so many in our industry are currently experiencing, it’s a bit challenging to highlight last year’s healthy performance; but the pre-COVID evidence should give companies encouragement that the sports and fitness industry was strong, sustainable and central to American way of life before the pandemic, and should return to vitality as we recover,” stated Tom Cove, President & CEO of SFIA. “Now more than ever, Americans’ health is top priority and being physically active is key for every individual, family and community. Our industry can be part of the long-term solution in inspiring and facilitating the country to be active and healthy.”
The fitness category excelled, with increased participation in nearly every measured subset. Dance, step, and other choreographed exercise to music (7.0 percent); aquatic exercise (6.4 percent); rowing machine (5.9 percent); treadmill (5.7 percent); and yoga (5.0 percent) represented the greatest year-over-year growth. Institutional fitness equipment and consumer fitness product sales grew 3.8 percent and 3.1 percent, respectively.
Team sports participation also increased. The growth in the category overall is attributed to traditional sports (with larger bases) attracting more participants in 2019, namely basketball (2.9 percent), outdoor soccer (4.5 percent), flag football (3.2 percent) and volleyball (2.7 percent). While these mainstream sports drove total category growth, the research also found only fewer than half of the 23 team sports measured increased in participation.
The report also examines a variety of industry trends around consumer behavior, inventory management, technology investments and the impact of increasing tariffs on sourcing decisions. Athleisure, as it has for some time, continued to dominate footwear and apparel and drive sales growth, while performance categories lagged.
The 2020 State of the Industry Report is free to SFIA members and available to the public for purchase here.
SILVER SPRING, MD (March 12, 2020) – The SFIA, NFHS and NCAA have decided to postpone the annual Team Sports Rules & Management Conference, scheduled to take place in Indianapolis on April 13-14, 2020, due to the coronavirus. With the disease rapidly spreading throughout the world, it is in the best interest of our guests to cancel the original dates set for the event, and we will reassess once the issue has resolved. We are hopeful that the conference can be held at a later date in 2020.
As for SFIA council meetings, which were scheduled to take place on April 13, 2020, we are actively looking into alternative options and are considering conducting the meetings virtually. Additional information will be forthcoming, as we will continue to serve our industry to the best of our ability during this difficult time.
For any questions regarding the event, please reach out to Alli Schulman at [email protected]. For questions concerning the council meetings, please contact Gregg Hartley at [email protected].
SFIA Releases Annual Manufacturers’ Sales by Category Report
SILVER SPRING, MD (March 2, 2020) – The American sports and fitness product industry, including footwear, apparel and equipment, grew by 3.9 percent in 2019. The Sports & Fitness Industry Association (SFIA) released the 2020 Manufacturers’ Sales by Category Report today, reporting growth across every major category. Unlike most years, when sports and fitness sales patterns tend to mimic GDP growth, in 2019, the industry not only outpaced the national GDP, but in a year when GDP growth slowed, the industry increased from the previous year.
Athleisure continues to drive growth. Fitness apparel is up 6.5 percent; and looking at categories appealing to the athleisure style, fleece/sweat athletic apparel and outerwear grew 8.9 percent and 5.5 percent, respectively. In footwear, running, casual/fashion and kids all increased over five percent, further emphasizing the growth of athleisure overall.
As select team sports have experienced significant participation growth in recent years, staple products sales are also increasing. Baseball/Softball (3.9 percent), Basketball (4.6 percent) and Volleyball (5.6 percent) were among the strongest team sport category leaders.
Protective gear continues to be a big seller across multiple categories, even in categories where protective gear is new to the market, or sport. Sales increased in the five percent range for multiple team sports.
Consumer exercise equipment, now a $4 billion market, grew by 3.1 percent. Exercise bikes (8.3 percent), rowing machines (7.3 percent) and home gyms (6.0 percent) generated the biggest growth, while treadmills, representing more than a quarter of consumer exercise equipment, showed a healthy 3.0 percent increase.
As for footwear, the two biggest categories, running shoes and kids footwear, both increased over five percent.
The SFIA Manufacturers’ Sales by Category Report measures U.S. wholesale revenues across 5 major categories, 34 subcategories, with nearly 150 various breakdowns. This report is free to all SFIA members and available for purchase here.
SFIA hosts 21st annual National Health Through Fitness Day in Washington, DC
SILVER SPRING, MD (Feb. 17, 2020) – On March 11, 2020, the Sports & Fitness Industry Association (SFIA) will be hosting the annual National Health Through Fitness Day to promote the Personal Health Investment Today (PHIT) Act. The PHIT Act, which allows Americans to use pre-tax dollars to pay for physical activity-related expenses, will help to reduce the financial barrier that stands between many Americans and an active, healthy lifestyle. This year, SFIA will be joined by celebrity athletes, the American College of Sports Medicine (ACSM), sports and fitness industry executives, and other physical activity advocates, to discuss the importance of focusing on means of preventive care, not just treatment. Physical activity has been proven to decrease risk of chronic disease, obesity and other costly ailments that are causing astronomical healthcare expenses for our country.
In 2020, National Health Through Fitness Day takes on added significance due to the success it has seen over the past few years. Cosponsors signed on at a record pace in 2019 after the House passed PHIT in 2018 and the Senate took steps to streamline movement of PHIT at the end of the year. Just last week, PHIT advocates met with the Chairman of the Lead Congressional Tax Writing Committee to promote PHIT, and it was raised directly to Treasury Secretary Mnuchin at a Senate hearing. There is great momentum behind PHIT and on National Health Through Fitness Day, we will push for PHIT’s inclusion in a bipartisan healthcare package scheduled for a vote in May.
SFIA plans to build on this momentum to garner as much support for PHIT as possible to ensure passage during this congressional term. With the help of professional athletes, including Herschel Walker (Heisman Trophy Winner), Steve Garvey (World Series Champ), Santana Moss (NFL Pro Bowl Player), Kylie Ohlmiller (1stOverall WPLL & UWLX Draft Pick), Paul Rabil (2x MLL MVP), Eric Byrnes (Former MLB Player and ESPN Analyst), Brenda Martinez (2x Olympian), Andrew Ference (Stanley Cup Winner), Kyle Harrison (Tewaaraton Trophy Winner), Ken Harvey (4x NFL Pro Bowl Player) and John Booty (Former NFL Player), SFIA PHIT supporters will speak to the far-reaching, lifelong benefits of an active lifestyle. PHIT is a popular, bipartisan healthcare improvement bill, and we are eager to spread the message.
To learn more about the PHIT Act and SFIA’s National Health Through Fitness Day, click here.