Running USA\’s State of the Sport 2011 – Part II: Running Industry Report – General running numbers up; Nike reaching the young; apparel sales hit $1.1 billion, shoes sales down slightly; record fundraising helps drive Second Running Boom growth

COLORADO SPRINGS, Colo. – (June 26, 2011) – From record or sold-out race fields across the country last year, billions of dollars in shoe sales and running apparel, innovative products such as personalized devices to track individual workouts and record fundraising, the Running Industry continues to show impressive growth in virtually every sector.

Running is one of the most convenient and inexpensive forms of exercise available. There are no required membership fees, special equipment or required classes. All you need is a pair of running shoes and you can just walk out your door or office. No longer is the marathon just for someone who trains 50 to 70 miles a week or a specialty running store only for those with chiseled calves. Today's runners are those looking to achieve a new goal, to stay fit, to relieve stress, to feel empowered or to run for a cause. And thanks to numerous free online training programs, today's new runners can easily find a program that is right for them, based on their ability and available time to train.

Many casual runners are entering events to have fun, as a social activity, and for the experience; it's not about setting a new PR for them, but finishing. Last year, 14 Rock ‘n' Roll Series events saw more than 255,000 individuals cross the finish line. Of those, 37% were debuting in the marathon or half-marathon, and 62% were female, reflecting the broad appeal of running nationwide.

Running/jogging continues to show strong and consistent growth annually as running total participation was up almost 13% overall in the last year and has increased by 57% in the last 10 years, according to the Sporting Goods Manufacturer's Association. SGMA also projects running / jogging as a sport with some of the greatest growth potential from 2010 to 2015, ranking #12 on the list with a 31% growth rate.

Table 1: U.S. Running Participation Numbers for 2010

		Total Participants ('09 – '10 +/-)
SGMA Total Runners	Run/Jog at least once	49,408,000 (+12.6%)
SGMA Core Participants	Run/Jog 50+ days/yr	27,664,000 (+8.2%)
SGMA Frequent Runners	Run/Jog 100+ days/yr	18,338,000 (+11.5%)
SGMA Total Trail Runners	Run on Trails at least once	5,136,000 (+6.3%)
NSGA (1) All Runners	Run/Jog 6+ days/yr	35,524,000 (+10.3%)
NSGA (1) Frequent Runners	Run/Jog 110+ days/yr	7,358,000 (-7.4%)

Shoe Giants Chasing the Consumer
During an investor presentation held in New York City, Trevor Edwards, Nike's Vice President in Global Brand and Category Management said Nike's latest successes are being helped by its focus on the young runner (18 – 24 year olds). He stated, "Actually, this is the fastest growing segment. They run with music, they expect information and they love running as a community sport."

Edwards also stated that the younger consumer has been particularly driven to the Nike+ technology and last year Nikeplus.com had nearly 3 million registered members worldwide. As Nike will continue to target this younger demographic, they also have other goals on their radar screen, such as "Owning the Uniform of Running." Edwards stated that product innovation continues to define running success for the brand.

Likewise, the other running shoe giants continue to strategize and target their marketing campaigns. As the core running brands try to capitalize on their unique position in the marketplace, each brand is becoming more aggressive and more innovative in the products they offer to consumers. Two areas gaining stride are women's shoes / apparel and minimalist shoes being driven by the latest in barefoot running.

Running Footwear Down, Sports Apparel Up
The National Sporting Goods Association's (NSGA – 2) "Sporting Goods Market in 2011" reports that running / jogging shoe sales totaled $2.32 billion in 2010, down 2% in total dollars from the previous year ($2.36 billion in 2009). Sales are projected to grow an additional 1% to approximately $2.33 billion in 2011. See Table 2 below for historical sales figures and distribution channels.

The NSGA (2) also reports that running / jogging apparel purchases totaled $1.1 billion in 2010, with a 23% increase over the previous year, and more than any other category listed in NSGA's report on athletic and sport clothing. Apparel in this category is expected to grow an additional 14% by 2011. While running is an inexpensive form of exercise that requires no mandatory equipment purchases, today's runners are still eager to open up their pocketbooks to buy the latest gear including shoes, apparel and other new products on the market.

Table 2: Jogging & Running Footwear Sales in U.S. (NSGA – 2)

	1988	1998	2009	2010
Running Shoe Units	25.31 million	29.41 million	39.76 million	37.16 million
Running Shoe Dollars	987 million	1.47 billion	2.36 billion	2.32 billion
Sales Channels – % of Units
General Sporting Goods	22.0%	15.9%	20.2%	22.5%
Discount Stores	16.0%	14.8%	22.0%	21.4%
Specialty Athletic Footwear	22.1%	22.1%	17.6%	16.2%
Online Internet	–	–	10.9%	12.2%
Department Stores	17.7%	16.1%	6.7%	8.8%
Family Footwear	12.4%	10.4%	7.2%	6.3%
Specialty Sport Shops	3.0%	4.9%	4.1%	4.7%
Factory Outlet	–	7.0%	7.7%	4.5%
Mail Order	2.6%	5.7%	1.4%	1.8%

Table 3: Brand of Running Shoes Last Purchased – 2011 National Runner Survey

Brand	2009	2011
ASICS	29.9%	25.8%
Brooks	14.4%	16.3%
Nike	14.7%	13.7%
Saucony	11.3%	12.8%
Mizuno	8.9%	8.8%
New Balance	9.7%	8.4%
adidas	5.5%	4.1%
Newton	<1%	2.2%
Vibram Five Fingers	<1%	2.1%

Complete list available in Running USA's 2011 National Runner Survey. To order, CLICK here.

Running for a Cause
There is no doubt that running for a charitable cause has led to the surge in running participants over the past two decades. Just recently (July 2011) Runner's World magazine published an entire special issue discussing how runners unite for a cause. According to the Run Walk Ride Fundraising Council, running and walking events such as the American Cancer Society's Relay for Life ($416.5 million), Susan G. Komen's Race for the Cure ($121.9 million), and the Leukemia & Lymphoma Society's Team in Training (TNT) program ($97.0 million) were three of the top four events in the overall list of the 30 largest athletic-event fundraisers (see Table 4) which overall, generated a total of $1.65 billion for charity.

Running (and walking) has become the sport of choice for those wanting to support charity. Anyone can lace up their shoes and run out the door, but running for someone recently lost to cancer, running as part of your own treatment regimen, or running to increase funding for a charity has created a deep emotional connection between the sport and the cause. People who never before thought they could ever run or finish a marathon are finding an inner strength and a greater goal to drive them to the finish line. Thanks to quality training programs and certified coaches backed by lifesaving missions, more people than ever before are running for a cause.

Table 4: Run Walk Ride Fundraising Council's Top Five Programs by Revenue – 2010

Relay for Life (American Cancer Society)	$416.5 million
Race for the Cure (Susan G. Komen for the Cure)	$121.9 million
March for Babies (March of Dimes)	$102.3 million
Team in Training (Leukemia & Lymphoma Society)	$97.0 million
Start! Heart Walk (American Heart Association)	$90.3 million

Upcoming Running USA State of the Sport reports will feature gender and age group demographics, event finisher totals by distance and the largest races nationwide for 2010.

SOURCES:

Brant, J. (2011, July). Team Effort. Runner's World, 77-81, 84-90.

National Runner Survey = Running USA. A comprehensive study designed to assess the demographics, lifestyle, attitudes, habits and product preferences of the running population nationwide. Available for purchase at www.runningusa.org.

Contact tracy@runningusa.org for questions.

NSGA = National Sporting Goods Association. (1) = NSGA Sports Participation in 2010, Series I, II, State-by-State, (2) = NSGA Sporting Goods Market in 2011, based on retail sales in the U.S. projected from consumer surveys of 80,000 households.

To obtain information on any of the NSGA products and services, email: info@nsga.org, phone (847) 296-6742 or go to www.nsga.org.

Outrunning Cancer: A special report on the myriad ways our sport is leading the fight against a killer disease. (2011, July). Runner's World, 75.

Rodale, Inc. = A global media company with a heritage, mission and authority dedicated to the health and wellness of the individual, community and planet. The company publishes some of the best-known health and wellness lifestyle magazines including Runner's World.

For more information, visit: www.rodaleinc.com

Running USA = Running USA advances the growth and success of the running industry in America. State of the Sport reports, many types of running data and lists of the largest races from past years can be found on RunningUSA.org in the "Statistics" section. For other questions about running trends and demographics, contact ryan@runningusa.org or tracy@runningusa.org

Run Walk Ride Fundraising Council = The Run Walk Ride Fundraising Council is the focal point of research in the burgeoning field of athletic event fundraising. Each year the council publishes the Run Walk Ride 30 which is a list of the top 30 programs ranked on revenue and other key metrics.

For more information visit www.runwalkride.com or contact info@runwalkride.com

Ryan, T. (2010, April). Nike Plots Running Growth: ‘Owning the Uniform of Running' Goal Moving Forward. PSR News & Information for the Running & Triathlon Market, 5(5).

SGMA = Sporting Goods Manufacturers Association. 2011 SGMA Sports & Fitness Participation Topline Report, based on participation numbers in the U.S. projected from online interviews of a nationwide sample.

To obtain information on any of the SGMA products or services, email: info@sgma.com, phone (301) 495-6322, or go to www.sgma.com