In just four weeks since the peak Christmas trading period, it is clear that sportswear will be in the retail spotlight in 2014, with both specialists and non-specialists targeting it for growth opportunities.
The £5.8bn UK sportswear market is forecast to grow by 3.2% in 2014, outperforming the total UK clothing & footwear market by 0.4 percentage points, boosted by retailers developing far more fashionable, affordable sportswear ranges, forcing specialists to fight back.
January’s retail news has been peppered with retailer activity across sportswear, including H&M and Primark promoting their refreshed sports offers, Lululemon launching in the UK and Adidas’s new concept store in Bluewater.
Sports specialists have also been on the lookout for new growth opportunities, with JD Sports moving into value gyms and Sports Direct eyeing potential collaborations with Debenhams following its investment in the department store. Riding on the success of the London Olympics and recognising a gap in the market for greater choice within sportswear, retailers are right to be investing in and greater showcasing this sector.
The UK sportswear market will reach £5.8bn in 2014, up 17.9% on 2009, with inflation, the lure of leading sports discounters and the raised profile of Olympic track and field events boosting demand. However, competition is intensifying. Sports specialists are facing far greater pressure from the growing share of clothing specialists, as more players such as H&M, Asos, Primark and Next develop own-brand fashionable sportswear ranges at affordable prices.
Further opportunities remain for non-specialists, especially in the value fashion segment of the market, where few fashion influences or collaborations have been incorporated into value sports ranges. Opportunities remain for the likes of Tesco, Asda or New Look to create high profile sportswear ranges if they collaborate with either a designer or sports professional, but they must ensure that prices remain low in order to appeal to their core target market.
In response to the greater competition on the high street and in an effort to protect their proposition from the discounters, many more sports brands are focussing on opening their own retail stores and restricting stock supplied to sports retailers and discounters such as Sports Direct. Global sports labels such as Nike, Adidas and Puma have started to create a stronger physical store presence, and are taking control of their own store operations, resulting in further competition for non-specialists but providing consumers with far more choice.
While the 2014 FIFA World Cup will boost sales in Q1 and Q2 2014, with consumers starting to feel a little more confident about spending on discretionary items and wanting to buy into new team kits or replicas, the interest in sportswear is a long-term trend for retailers to capitalise on.
Non-specialists and brands are investing in improved ranges and accessibility, which in turn make it more challenging for the leading sports specialists – Sports Direct and JD Sports – to achieve market share growth, unlike in the previous five year period. To be a winner in this prosperous market, it is essential for retailers to place greater focus on adopting fashion trends in sports clothing, while refreshing collections with regular newness will drive frequent footfall and purchases.
Honor Westnedge, senior retail analyst, Verdict
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