With internet retailing gaining grounds, market getting more and more segmented and with intense competition, most of the leisure and personal goods specialist stores are losing sales. Bags and luggage specialist retailers have seen the maximum slowdown. These retailers have seen a 6% decline in their sales in 2016. In Norway, the total number of retail outlets of leisure and personal goods fall by over 9% in 2016. One of the main reasons for downfall in sale of bags and luggage specialist stores is the industry fragmentation. More retail stores of apparel and footwear, sports goods and large grocery stores selling bags and luggage are offsetting the sales of specialist stores. In addition to this, the economy of Norway is seeing slowdown since 2015. Because of this, very few citizens of Norway are doing foreign trips, which have further impacted the sale of bags and luggage. This has worsened the position of bags and luggage specialist retail stores.
To counter the slowdown, most of the organizations are changing their strategies to increase their sales. Leading players in leisure and personal goods market are forming strategic alliance to increase their customer base. Strategic alliances allow the organizations to not only cover a larger market space but also increase the product base. With more product categories to offer, a company can cater to the needs to a wider consumer base and hence can increase their sales. Mergers, acquisition are happening more frequently. Large brands like Sit Tapir and Akademika are merging to create larger brands and strengthening their position in Norwegian market. Other brands like GameStop Corp and EB Games have also merged to increase their number of stores available in the market and increase their sales. This market can be segmented into Bags and Luggage specialist stores, Jewellery and Watch specialist retailers, media products, pet shops, sports goods, stationary products and traditional toys and games stores.
According to the market research report “Leisure and Personal Goods Specialist Retailers in Norway“, at present, the personal and leisure products market in Norway is not showing any significant growth. However, with market players changing their strategy to increase their sale both in terms of value and volume, this Norwegian market can be expected to show some signs of recovery in near future.
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Ankur Gupta, Head Marketing & Communications