On the shoulders of giants

A shift has occurred in the athletic retail market, with established giants like Nike losing market share to challenger brands such as Gymshark, On Running, and Lululemon.

This phenomenon can be attributed to several key factors, including evolving consumer preferences, innovative business strategies and physical retail spaces which are improving brand awareness and customer participation.

One of the primary drivers behind the success of challenger brands is their ability to tap into changing consumer trends and preferences. In an era when personalisation and authenticity reign supreme, these brands have mastered the art of catering to niche audiences with specialised products and messaging. Gymshark, for example, has built a loyal following among fitness enthusiasts through influencer marketing by offering stylish and functional activewear tailored to their specific needs. Similarly, Lululemon has capitalised on the growing demand for yoga and athleisure wear, positioning itself as a premium lifestyle brand synonymous with quality and craftsmanship.

Gymshark opened its 2-floor 18,000 sq ft flagship store at the end of 2022 on Regent Street, London with a full-sized gym on the ground floor. The merchandise on this floor has been organised in a way that it can be rolled away. It can be hoisted up to the gantry and fitted on to shelves which double as racks for the space to be converted into a functional area for classes, events, or meet-ups. In addition, Gymshark has also partnered with Joe & the Juice for a small grab & go and drink bar with a menu tailored for fitness enthusiasts. Activating the space in this way enables them to foster a community with their customers which aligns with the brand's values. The success of this first store has led them to open a second store at Westfield Mall Stratford which is due to open summer this year.

Additionally, challenger brands have differentiated themselves through product innovation and technological advancements. On Running, for instance, has disrupted the running shoe market with its patented CloudTec® technology, offering runners a unique combination of cushioning and responsiveness. By focusing on performance and functionality, these brands have carved out a niche within the broader athletic retail landscape, attracting consumers seeking specialised solutions tailored to their specific activities and preferences.

Swiss running specialist On has taken a more immersive and tech-driven approach to in person shopping. On's flagship store on Regent Street in London exemplifies a strategic retail approach that prioritises immersive experiences and community engagement. Spanning three storeys, the store integrates design-centric elements and cutting-edge technology, such as the 'Magic Wall' shelves and hidden gait analysis technology which matches customers to the best shoes for their running style after making them run a few strides on the floor. This enhances the in-store shopping experience, making it more personalised and convenient for customers. Additionally, the store features a versatile community space on the Lower Ground floor, hosting a range of events and activities, including weekly 5K runs. This emphasis on experiential retail not only differentiates the brand but also strengthens customer loyalty and advocacy, ultimately driving long-term success in an increasingly competitive market.

The athletic retail market is witnessing a notable transformation, with emerging players challenging the status quo. These challenger brands are employing innovative strategies and redesigning physical retail spaces to engage consumers more effectively. The emphasis on experiential retail, community engagement, and personalised experiences reflects a broader shift toward customer-centricity in the industry. As these brands continue to evolve and differentiate themselves through product innovation and immersive store experiences, they are poised to reshape the future of retail and capture a larger share of the market.