The Enduring Struggles of a Century-Old Retailer: Lessons for the Sporting Goods Sector

The recent closure of Sherman's Sports, a century-old family-owned sporting goods retailer in Hendersonville, North Carolina, marks a poignant milestone in the sector's evolution. Founded in 1922 and shuttered in 2025 after 103 years of operation, the business symbolized the challenges of sustaining legacy retail models in an era of rapid digital transformation and shifting consumer behavior Another sporting goods retailer closing forever after 103 years^[1]. This case study, paired with broader industry trends, offers critical insights for investors assessing the resilience and risks of the sporting goods sector.

Generational Succession and the "Retail Death Spiral"

Sherman's Sports' closure was driven by a lack of generational continuity, a recurring issue in family-owned businesses. The current owners, Becky Sherman and Rex Banadyga, retired after decades of stewardship, but none of their daughters expressed interest in taking over. This mirrors a broader pattern: the original Dick's Sporting Goods store in Binghamton, New York—founded in 1948—also closed in 2025, signaling the end of an era for a brand that once epitomized American retail grit End of an era: Original Dick’s Sporting Goods to close^[5].

The "retail death spiral"—a cycle of declining foot traffic, rising operational costs, and eroding margins—has accelerated the closure of brick-and-mortar stores. According to a 2025 McKinsey report, the sporting goods industry's average annual growth rate has slowed from 7% (2021–2024) to a projected 6% for 2024–2029, driven by economic slowdowns in key markets and rising physical inactivity Sporting Goods industry trends 2025 | McKinsey^[2]. For legacy retailers, the absence of a clear succession plan exacerbates vulnerability to these macroeconomic forces.

E-Commerce Resilience and the "Digital Divide"

While traditional retailers struggle, e-commerce has emerged as a lifeline for the sector. Online sales in the U.S. sporting goods industry reached $4.8 billion in March 2025, with platforms like Nike and Amazon dominating the space Sporting goods e-commerce - statistics & facts | Statista^[3]. However, this digital shift has widened the gap between agile, tech-savvy competitors and legacy players. Dick's Sporting Goods, for instance, has scaled back its Moosejaw and Public Lands brands, closing six stores in 2024 as part of a strategic pivot toward digital-first operations Dick's Sporting Goods closes several of its stores! We tell you which ones^[4].

The paradox for investors is clear: while e-commerce drives growth, it also demands significant capital for omnichannel integration, inventory management, and customer acquisition. For smaller retailers like Sherman's Sports, the cost of competing in this arena is prohibitive. As one industry analyst noted, “The sporting goods sector is becoming a two-tiered market—digital natives thrive, while traditionalists are left behind” Sporting goods e-commerce - statistics & facts | Statista^[3].

Post-Pandemic Challenges and Consumer Behavior

The pandemic's long shadow looms over the sector. While 2021 and 2022 saw a surge in outdoor activity and equipment sales, the post-pandemic slump has been sharp. A 2023 World Federation of the Sporting Goods Industry (WFSGI) report warned of a “recessionary outlook” driven by inflation, geopolitical tensions, and reduced discretionary spending Another sporting goods retailer closing forever after 103 years^[1]. Meanwhile, the World Health Organization's data reveals a troubling trend: 31% of adults were physically inactive in 2022, a figure projected to rise to 35% by 2030 Sporting Goods industry trends 2025 | McKinsey^[2].

These shifts underscore the need for brands to innovate beyond product offerings. Companies like Nike and Adidas are now prioritizing community engagement and inclusive marketing to combat inactivity, while leveraging social commerce tools on platforms like Instagram to drive impulse purchases Dick's Sporting Goods closes several of its stores! We tell you which ones^[4]. For investors, the lesson is clear: resilience in the sector hinges on adaptability to both economic and cultural trends.

Strategic Implications for Investors

The closures of Sherman's Sports and the original Dick's store highlight three key risks for investors:
1. Generational Business Continuity: Legacy retailers without succession plans are increasingly exposed to market volatility.
2. Digital Disruption: E-commerce's dominance requires capital-intensive investments that many traditional players cannot match.
3. Consumer Sentiment Shifts: Declining physical activity and economic uncertainty threaten long-term demand.

Conversely, opportunities exist for companies that embrace hybrid models, integrate AI-driven inventory systems, and prioritize sustainability. The 2025 McKinsey report notes that 44% of industry executives remain optimistic about 2025, citing confidence in integrated supply chains and community-driven engagement strategies Sporting Goods industry trends 2025 | McKinsey^[2].

For investors, the path forward lies in balancing caution with innovation. While the sector's challenges are undeniable, its ability to adapt—through digital transformation and cultural relevance—offers a glimpse of resilience in an uncertain future.