Hibbett Sports Inc.

    Hibbett Sports Inc. SWOT & PESTLE

    • Report

    • ID: 533942
    • 20 Pages
    • April 2021
    • Region: North America
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    About Hibbett Sports Inc.

    Hibbett Sports, Inc. is an American-based full line sporting goods retailer, headquartered in Birmingham, Alabama. The company was founded in 1945 by Rufus Hibbett, and was initially named as Dixie Supply Co. Later, then his sons, Ike and George Hibbett joined the company; the brand was renamed as Hibbett & Sons. Hibbett has a rich history of offering personalized customer service and access to popular footwear, apparel and equipment from top brands like Nike, Jordan, Adidas, and Under Armour.   The company mostly operates in mid-sized markets, in the Southeast, Southwest and lower Midwest regions of the United States. Hibbett Sports store is the company’s primary store format, with approximately 5,000 sq. ft. store located mainly in strip centers which are often inspired by a Walmart store. In 2020, the company has more than 1,060 stores under the Hibbett Sports and City Gear banners, with approximately 3,200 employees. In order to prevent scalpers from purchasing products from its hibbett.com website, the company decided to launch an anti-reselling campaign in January 2021, which failed miserably because of poor implementation. 

Hibbett Sports, Inc.’s Unique Proposition lies in being the leading operator of retail stores for a full line of sporting goods.  Hibbett Sports mission statement reads, “We are the local sports source that provides exceptional convenience, brands and service.”

    Business Sector

    Fashion & Lifestyle

    Operating Geography

    USA, North America, Global

    Revenue

    $ 1.18 billion – FY ending February 1, 2020 (YoY growth of 9.2%)

    $1.08 billion – FY ending February 2, 2019

    SWOT

    SWOT Matrix for Hibbett Sports

    Strength

    Weakness
    1. Hibbett targets low to mid-sized markets which allows the company to expand with relatively low operating costs and minimal competition.
    2. Huge investments made by the company in training and development
    3. Hibbett makes strong and efficient use of technology.
    4. Strong implementation and maintenance of information systems for all business strategies.
    5. The adoption of omni-channel platform integrating digital commerce with stores.
    1. Being a regional retailer, company will be affected by any regional downturn such as the economy, gas or fuel price increases, climate patterns.
    2. Hibbett is reliant on the vendors to create products that the consumers find appealing and desirable.

    Opportunity

    Threat
    1. Being a regional retailer, company will be affected by any regional downturn such as the economy, gas or fuel price increases, climate patterns.
    2. Hibbett is reliant on the vendors to create products that the consumers find appealing and desirable.
    1. It faces a high competition within the industry from brands like Dick's, Academy, Ltd., Dunham's Sports.
    2. Risk due to constantly changing fashion trends and customer preferences.
    3. Loss in business due to direct sales by vendors themselves.
    4. Cancellation of sporting events organized by various universities throughout the country due to COVID-19

    Detailed SWOT Analysis of Hibbett Sports

    The detailed SWOT analysis for Hibbett Sports Inc. is presented below:

    Strength

    1. Hibbett targets low to mid-sized markets which allows the company to expand with relatively low operating costs and minimal competition: Hibbett Sports is a rapidly growing operator of sporting goods stores in small and mid-sized markets majorly concentrated in Southeast, Mid-Atlantic and lower Midwest regions of the United States. It targets markets with county populations within the range of 30,000 to 100,000. A typical Hibbett store is only 5,000 sq. ft. and are usually located in strip malls (75% approximately). The operating costs of small stores are less as compared to larger stores. Thus, the returns are impressive with low initial investment costs and high return on investment with more than 40%. With its focus on smaller markets, it can find better real estate locations than being placed in major metropolitan areas. Its target market enables the company to achieve strategic advantages including expansion opportunities, comparatively low operating costs and a more limited competitive environment than generally faced in the larger market.
    2. Huge investments made by the company in training and development: Huge investments are made by Hibbett in training and development of its employees. It has deployed software from knowledge supply chain platform Myagi which provides better training, communication, and product knowledge access to thousands of their retail employees. It also intends collaborate with vendors who have products on its store shelves, like New Balance and Adidas, to communicate with and educate their retail employees using Myagi. They have highly qualified and experienced BOD possessing key skill sets having more than 15 years of experience in senior management positions within retail industry.

    The remaining points in this section are available in the 'Complete Report' on purchase.

    Weakness

    This section is available only in the 'Complete Report' on purchase.

    Opportunity

    This section is available only in the 'Complete Report' on purchase.

    Threat

    This section is available only in the 'Complete Report' on purchase.

    PESTLE

    PESTLE Matrix for Hibbett Sports

    Political

    Economic
    1. Change in the prices of imported goods from China due to the US China trade war.
    2. Enactment of CARES Act which will affect the tax credit refunds, interest deduction limitations and other things
    1. The economic cycle of recession due to Covid-19 resulted in closure of underperforming stores.
    2. Change in LIBOR in 2020 which affects the interest rate on credit availed by Regions Bank.

    Social

    Technological
    1. The growing participation of women in domestic and professional athletics and the convergence of sport & style
    2. Broadened consumer reach due to increased use of mobile, internet and social media.
    3. The need to assess the response of the society towards sports and other physical events to decide on the consumption rate of their products
    1. The e-commerce platform was built recently which helped rope in digital victory that helped in enhancing sales
    2. The mobile is the dominant platform for searches and the trend of m-commerce is rapidly increasing.

    Legal

    ENVIRONMENTAL
    1. The sportswear companies should take into consideration consumer protection and competition laws, as well as employment law.
    1. Turning from sustainability as a cost and risk reduction measure to an opportunity likely to promote future business growth.

    Detailed PESTLE Analysis of Hibbett Sports

    The detailed PESTLE analysis for Hibbett Sports Inc. is presented below:

    POLITICAL

    1. Change in the prices of imported goods from China due to the US China trade war: Trump set out a four-part agenda for ensuring that China gets a fair deal: declaring China as a monetary manipulator; fixing intellectual property problems and forced technical assistance disputes in China; putting an end to China's export incentives and weak labour and environmental norms; and lowering the US corporate tax rate to make American businesses more sustainable. The trade war which caused both sides significant economic pain also contributed to trade flows being diverted from both China and the US. US economic growth has declined; private spending has frozen and businesses have not employed too many. Many farmers have struggled around the nation and since the last contraction, the automotive and cargo transport industries have experienced lower levels. The acts of Trump were one of the greatest changes in taxes in years. This led to a significant increase in the prices of imported goods from China which led to a huge rise in the prices of sportswear as most of it was imported from China only.

    The remaining points in this section are available in the 'Complete Report' on purchase.

    ECONOMIC

    This section is available only in the 'Complete Report' on purchase.

    SOCIAL

    This section is available only in the 'Complete Report' on purchase.

    TECHNOLOGICAL

    This section is available only in the 'Complete Report' on purchase.

    LEGAL

    This section is available only in the 'Complete Report' on purchase.

    ENVIRONMENTAL

    1. Turning from sustainability as a cost and risk reduction measure to an opportunity likely to promote future business growth: The retail sector is a significant engine of the trends of output and demand as a central link between suppliers and customers. Distributors have a significant impact on manufacturers, vendors and customers and can thus help promote environmental concerns in interested parties. The retail industry plays a crucial role in bringing about this global change - not only as a core catalyst for the international economy, but also as the key link between producers and customers. While the contribution of the retail sector in making a transition would be of value to society as a whole, this may also offer a valuable business case for the industry itself.  By inspiring consumers to produce fresh, safer and value-added items, retailers are able to tap into a small yet fast-growing market niche segment and are ensured consumer loyalty. Reduced future losses, a high profile of the firm and hence an increased retailer market equity are other intangible yet significant facets of the sector to be attained.

    Table of Contents

    • Company Overview
      • 1.1 About the Company
      • 1.2 Business Sector
      • 1.3 Operating Geography
      • 1.4 Revenue
    • SWOT Analysis
      • 2.1 SWOT Table/ SWOT Matrix
      • 2.2 SWOT Overview
      • 2.3 Detailed SWOT Analysis
      • 2.4 Strength, Weakness, Opportunity and Threat
    • PESTLE Analysis
      • 3.1 PESTLE Table/ PESTLE Matrix
      • 3.2 PESTLE Overview
      • 3.3 Detailed PESTLE Analysis
      • 3.4 Political, Economic, Social, Technological, Legal and Environmental
    • Appendix
      • 4.1 Major Competitors
      • 4.2 Business Sectors / Diversification
      • 4.3 References used to prepare this reports
    • Conclusion
      • 5.1 Closing thoughts
      • 5.2 Methodology used to prepare this report
      • 5.3 Copyrights and Disclaimer

      References and Copyright

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