Fitness and sportswear brands hit the market every year but only a few stand out and have the potential to be the next big player. Retail Week spotlights some of the brands aiming to break through in a category dominated by giants like Nike and Adidas
When Gymshark posted record sales and increased EBITDA in the year ending July 31, 2023, the sportswear specialist said its performance was “underpinned by the relevance and quality of our product” and “the resonance of our brand”.
The Solihul-based retailer is one of the few newer sportswear brands that has made a mark in the minds of increasingly selective consumers in a saturated category.
In a sector dominated by giants such as Nike, Adidas and Lululemon, the potential big names of the future are those that are leveraging their brand power to create a loyal community and sell more than just the product, says Michelle Du-Prât, chief strategy officer of creative agency Household.
“There’s something really layered and exciting about where sports branding is going,” she says. “Sportswear is no longer just a badge of exercise. It’s much more exciting than that. It’s about community and fan-building and shared moments that you either do together as part of a sports brand or as part of a sport.”
Retail Week takes a look at some of the sportswear brands in the UK that aim to disrupt the status quo.
Gymshark
In a short span, Gymshark has grown to become a global sportswear brand with a total social media following of over 18 million, and customers in more than 230 countries across 14 online stores.
Whether it’s through events, stores or Gymshark66, its 66-day fitness and wellbeing challenge, the retailer puts its community at the forefront of everything it does.
Du-Prât says: “Gymshark has this incredibly wide variety of tech-enabled garments that are designed to appeal to everyone from the elite to the diverse to the disabled. There is a broad sense of what Gymshark is about. The icing on the cake is where they’re actually bringing people together through their fitness classes in their store and through events.
“They’re saying this is a place where everyone can exist together. Their success lies in being personalised, empowering and bonding, all at the same time, and being able to manage and measure when those things matter.”
“When you’re wearing Gymshark, because you can engage with the brand in so many different ways on your terms, it says something about you and your personal power, which I think is more interesting than a cool logo on a piece of sportswear kit or athleisure kit.”
The sportswear retailer posted revenue in the year ending July 31, 2023, up 15% to £556m. During the same period, EBITDA including exceptional items rose to £40.4m, compared with £37.6m reported in 2022.
Profit before tax fell from £27.8m to £13.1m, which was affected by the drawing of a revolving credit facility (RCF) to fund the continued growth of the business.
However, the retailer confirmed it no longer needed to draw from the RCF as cash generation improved during the period and should be reflected in the next financial year.
Gymshark founder and chief executive Ben Francis says 2024 is going to be even bigger with a new store in Westfield Stratford, its first premium athleisurewear range, a wholesale distribution deal with Selfridges, expansion in the Middle East and its most ambitious events plans to date.
Tala
In an increasingly competitive market, a successful sports brand must address the diversity of its audience as well as unify its consumer base.
Tala gets the balance right by solving the two crucial problems of sizing and sustainability in the activewear segment.
Influencer and entrepreneur Grace Beverly founded Tala in 2019 to bridge the gap between high-performance activewear which was sustainable yet competitively priced. The retailer says all its products are made with recycled materials with inclusive sizing ranging from 2XS to 4XL.
In less than a year of trading, the brand generated revenue of £5.2m and has continued to build on its success by keeping its customer base engaged. It keeps financial figures close to its chest but said sales were in eight figures for 2023.
The brand has built an ecosystem with varied forms of content spread across social media platforms. Beverly is one of the leading voices on platforms including TikTok, Instagram and LinkedIn and the brand has a following of over half a million people, which is essential in keeping its customer base engaged.
Tala chief executive Morgan Fowles says building a community “is no longer optional but essential” in today’s environment
“Customers want more from a brand than just products, they want brands that evoke a feeling, they want to be a part of something, and at Tala, we don’t just try to emulate this, it’s who we are.”
Manors
Established in 2019 by founders Jojo Regan, Luke Davies and Nick Watts, Manors is designed to reinvent the golf wear segment previously dominated by plain polo shirts and tailored trousers. The brand’s new and innovative style can be worn both off and on the course and is designed with a new generation of players in mind.
Regan says: “Luke and I would play a lot of golf together and we felt disillusioned by the lack of variety within the golf industry at the time. If I was wearing a golf outfit it was obvious that I had been playing golf. We wanted to create something more high street and more street inspired.”
Manors’ ultimate goal is to change the narrative surrounding golf and its mantra for success is that acknowledging tradition doesn’t mean you need to be bound by it.
The brand’s philosophy has resonated with golf lovers, the brand raised £1m in capital to expand backed by actor Nicholas Hoult and musician Tom McFarland from the band Jungle.
Manors’ sales increased 58% year on year to £477,750 in full-year 2023. The retailer said it was on track to hit £1m in sales in 2024 as it focused resources on driving ecommerce sales.
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