After Wall Street had "speculated that sporting goods
retailers would begin to merge or acquire one another,
simply because there are too many of them ... several
players have finally started merger talks," according to
Jennifer Steinhauer of the N.Y. TIMES. Sources tell
Steinhauser that FL-based The Sports Authority "is talking
with" IL-based Sportmart, who is "chatting with" FL-based
Jumbosports. While The Sports Authority and Jumbosports
"may also have been in contact," TX-based Oshman's Sporting
Goods "may want a piece of the potential action as well."
While none of the companies would comment, the Steinhauer
notes "several players clearly have something to gain from
joining forces in a competitive market. ... Any segment of
the retail industry suffers when there is oversupply, but
the blood bath among super-sized sporting goods sellers has
been faster and more accurate than with other types of
merchants." Steinhauer writes that The Sports Authority is
"in the best position to make an acquisition -- it has a
smaller debt load and more cash on hand than its rivals and
is viewed as the best operator" (N.Y. TIMES, 6/12).
