Unsold bicycles force deep discounts at Anton Sport store in Bekkestua

Morten Borgersen, head of the Anton Sport chain, observes unsold bicycles at a store in Bekkestua, where prices have been slashed to half. He emphasized the incredible deals currently available, as inventory must be cleared before winter. However, he noted that such deep discounts lead to poor business, citing low margins within the sports industry.

During the pandemic, demand for outdoor equipment surged, resulting in a 21% revenue increase. This was followed by a downturn, as the sector faced a ‘perfect storm’. International supply chain disruptions led to delays in bicycle and sporting goods deliveries, while inflation and a weakened currency meant people had less disposable income, causing sales to plummet.

Sports industry representatives claim they are unable to adjust prices to reflect a rise in procurement costs, which have increased by 15-20%. Erik Sønsterud, CEO of Brav Group, stated that his company has implemented a 20% cost reduction after experiencing significant losses in 2023. He acknowledged a slight improvement in the market, particularly in Norway and Sweden, but stressed the need for price increases to ensure sustainability.

The first quarter of 2023 saw a decline of over 10% in sales across sporting chains, and the second quarter remained weak. The Norwegian Sports Retail Association anticipates that 2024 may be the most challenging year since 2017-2018. Many retailers have reported significant losses, with around 100 sports shops shutting down and layoffs occurring across the sector. Large firms, including Bergans, faced massive deficits, reinforcing the difficult landscape for the industry.