Possible Risks

One of the possible risks that might occur is downturn in economic condition. When economic
conditions decline, and consumers have less spending money, sport shoe retails will experience
hardship. Opening a sport shoe retail store carries the risk of poor timing. Some retail store
owners use downturns to their advantage. Renting storefronts, for example, can be significantly
cheaper during downturns as property owners scramble to lease space.

Not only that, changing taste and preferences is another risk, specifically for stores selling
branded sport shoes like Adidas, Nike, Rebook and Puma. Planning on which items to sell is
an ever-changing activity -- for example, a sport shoe retail store might plan on stocking the
latest designs and model of sport shoes and at a certain cost; this figure may change before the
store opens because of other newly designed sport shoe models entering the market. Many
sport shoe retail stores circumvent this risk by entering deals with wholesale manufacturers of
these items. When the latest item is manufactured, the sport shoe retail store knows in advance
the expected cost associated with the good. Businesses must be willing to revamp their image
often to compete. Use heavy advertising for new and unexplored types of sport shoes and
collecting consumer feedback frequently as a way of maintaining customers.

Though service industries worry about theft of ideas, sport shoe retail stores face an ever-
present concern regarding theft of physical goods. Opening a branded sport shoe retail store
requires purchasing a large stock of items and replenishing these orders frequently. Managing
this risk requires having an inventory management strategy in place. For instance, sport shoe
retails must utilize in-store security cameras to monitor employees and customers.