After filing for bankruptcy and unable to get themselves back on their feet, Sports Authority has announced that they will be closing all of their stores. On March 26 the company announced that they will permanently close all 463 of their stores and proceed with massive closing sales until late August.
Originally, the company stated they would only close about 150 of its stores. But when they officially failed to reach a middle ground with whom they owed money to, the company announced they'd be closing all locations instead with some hope of finding a buyer.
As sporting and athletic gear sales are growing more and more each year, the company could not keep up with their online sales and the other online competition. Considering that a great percentage of sales come from online shoppers who want an easier shopping experience, Sports Authority often lacked having an online advantage, which ultimately lead to their downfall.
The company was owned by a private equity company based in California named Leonard Green & Partners. USA Today has said that it was $1.1 million in debt and lacked keeping up with the latest trends consumers followed. This unfortunate situation is not unlikely for many companies to experience. With athletic apparel always changing and developing new styles, keeping up with trends and consumer preferences is key to a successful business.
"It's a shame they are going out of business," says Ellen DeMartini, a UO junior. For college students, Sports Authority was often a place where many students went to buy their athletic gear for a more decent price. The location at the Valley River Center was popular among many and will close along with the rest. Students will have to turn to the other options around Eugene for their athletic clothes, shoes and equipment. "The price was always right at Sports Authority," DeMartini continued, "I will miss shopping there and always finding good deals."
As consumer patterns are always changing, many retailers struggle to maintain their store profits and goals. Sports Authority is just another example of how keeping up with online sales is just as important as in store sales. Consumers are becoming more tech savvy, which results in more purchases though a company's website. However, Sports Authority has made it clear that online competition is a big part of what has drove them to close their stores.
Sports Authority will be having liquidation sales anywhere from 50 to 70 percent off their store and are looking to sell everything. The next big question is, who will fill the empty Sport's Authority locations? There are rumors that the company Dick's Sporting Goods will take over a handful of the deserted stores.
