Sports Authority: What do its problems mean for retail?

Sports Authority recently announced a chapter 11 filing as well as its plans to close or sell many of its locations. RetailWire panelists had a chance recently to dicuss what these developments mean for the broader world of retailing:

There are two issues at play here: Yes, there is an overall recognition by brick-and-mortar retailers that they have too much square footage as their own “omnichannel” business cannibalizes their physical stores. It’s an issue for all kinds of retailers, from Walmart to Kohl’s to Macy’s.

But Sports Authority’s struggles are symptomatic of the problems plaguing “niche” big box stores for several years. There has been a survivor (Best Buy, Bed Bath & Beyond, Barnes & Noble) and a failure (Circuit City, Linens & Things, Borders) in just about every niche you can think of — and even the “winners” are struggling with too much square footage.

Underlying the consolidation in the sports apparel and equipment industry? First, the impact of Amazon and other online competitors on just about every retail segment. Second, the push into activewear by every department store and apparel specialist you can name.

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