Thinking of Buying a Sports Goods Business in Australia? Here Are 3 Vital Questions to Ask

Australia’s sports goods market is being reshaped by strong online growth, changing participation patterns and the rise of health and fitness as a lifestyle priority. Online sporting and physical recreation goods alone generate around $1.1 billion in annual revenue, after growing at more than 6% a year, with forecasts to reach roughly $1.5 billion by 2029–30. At the same time, large omnichannel brands and specialist outdoor chains are investing heavily in digital platforms, click and collect and data driven marketing to capture a bigger share of sales.

Consumer demand is influenced by real household discretionary income, cost of living pressures and confidence about the broader economy. When budgets are tight, buyers may delay higher ticket purchases such as treadmills, bikes and premium camping gear, but spending tends to hold up better in categories linked to everyday fitness, walking, home exercise and affordable outdoor activities. Major sporting events and government initiatives to boost participation, along with growing interest in camping, bushwalking and wellness, continue to support long term demand for sports and recreation equipment.

1. How resilient are the business’s sales across products, channels and customer groups?

Why It Matters:

Sports goods businesses face cyclical swings in discretionary spending, participation rates and outdoor travel. A business that relies heavily on one segment, for example high end equipment or a single age group, is more exposed to downturns than one with a balanced mix of everyday fitness, outdoor and team sports products sold through multiple channels.

What to Check:

• The sales split between fitness equipment, sporting equipment, camping and fishing gear and accessories, and whether revenue is concentrated in just one or two categories.

• How much income comes from households versus clubs, schools, gyms and corporate clients, and whether key accounts are locked in by agreements or just ad hoc orders.

• The share of trade made in store compared with online, marketplaces and click and collect, and how each has been trending over the past three to five years.

• Revenue patterns around major seasonal peaks such as back to school, summer sports and holiday camping, and whether cash flow remains steady outside peak periods.

• How the business has performed through recent cost of living pressures, and whether it has been able to maintain volumes or margins while consumers tightened their budgets.

2. Does the business have the digital capability and omnichannel presence needed to compete?

Why It Matters:

Online shopping is now integral to the sports goods market, with consumers expecting seamless browsing, competitive pricing, fast delivery and easy returns. Larger players combine strong websites, mobile apps and social media campaigns with extensive store networks and click and collect, making it hard for traditional shop only operators to keep pace.

What to Check:

• The quality of the website, including product range, navigation, search, payment options and real time stock visibility across store and warehouse locations.

• Whether the business offers click and collect, delivery tracking, flexible returns and customer support via chat, email or social channels.

• Use of data and analytics to personalise offers, recommend complementary products such as accessories, and identify high value customers.

• Strength of social media presence and community engagement, for example content around fitness tips, camping advice or local club partnerships that drives traffic and loyalty.

• Investment in back end systems such as inventory management, integration with marketplaces and automated order fulfilment to keep online operations efficient and scalable.

3. Is the business positioned to ride future participation and technology trends in sport and recreation?

Why It Matters:

Future growth in sports goods sales is expected to be driven by rising participation, major events such as the Brisbane 2032 Olympics, and technology that makes exercise more trackable, interactive and enjoyable. Businesses that align their product mix and marketing with these trends have a stronger long term outlook.

What to Check:

• Product depth in growth areas such as home fitness equipment, wearable tech compatible gear, running and walking accessories, and affordable outdoor and camping equipment.

• Whether the business is stocking brands and product lines that appeal to health focused, tech savvy and younger demographics who are heavy online shoppers.

• The ability to pivot quickly into emerging categories driven by new sports, fitness trends or upcoming events, rather than being tied to shrinking or highly seasonal sports.

• Partnerships with local clubs, schools, gyms and community programs that benefit from government participation initiatives and create recurring equipment demand.

• Plans for sustainability, such as durable products, repair or refurbishment services and environmentally conscious ranges, which can differentiate the business and support pricing.

Ready to Invest in a Thriving Sports Goods Business?

With strong underlying demand for fitness, outdoor recreation and organised sport, along with the powerful growth of online shopping, sports goods businesses offer attractive opportunities for buyers who can blend retail expertise with modern digital capability.

Success will depend on diversified revenue streams, a robust omnichannel strategy, strong supplier and customer relationships and the agility to adapt product ranges to changing participation, technology and lifestyle trends.

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