What makes the UK an attractive market for international sportswear retailers?

The UK sportswear market has seen tremendous growth since the global pandemic, driven largely by GenZ consumers, as the lines between fashion, athleisurewear and streetwear merge into one. 

Sportswear was worth £15.3bn in the UK in 2022 – approximately 26% of total spend on apparel – according to research by Global Data. 

However, there are signs that the post-pandemic athleisurewear feast is slowing down compared with other global markets where athleisurewear is less established. Global Data forecasts that the UK sportswear category will grow by only 2% this year, and just 16.3% between 2022 and 2027.

One reason for this is that sportswear is an increasingly mature market in the UK, which is geographically much smaller in terms of sales. Yet, the UK accounts for a third of total revenue at sportswear giant JD Sports – the same as North America and Europe, respectively. 

Chief executive Régis Schultz said that JD Sports is actively looking to expand its portfolio beyond the UK to take the brand to new heights internationally. It has announced recent deals to take complete ownership of hitherto joint ventures in Iberia and Poland, streghtening its foothold in those regions.

Meanwhile, high-street rival Frasers Group is following suit, last week striking a deal to acquire SportScheck, one of the leading sports retailers in Germany, as it announced ambitions to be “the number one sports retailer” in Europe.  

But if some of the UK’s best-established sportswear brands think they are reaching their peak at home, why are so many international brands choosing this moment to come into the British sportswear market?

Brands stepping up to the plate

Swiss brand On opened its first UK store on London’s Regent Street in February this year, and is set to open a second store in East London’s Spitalfields before the end of October. 

Bianca Pestalozzi, On general manager for EMEA, said: “The UK has emerged as a significant growth driver for On, and we’re fully committed to investing in the market. Following the opening of our flagship store, we have found that retail acts as a strong enabler for both brand building and awareness across channels.  

“We saw a three-times higher baseline in online traffic post-store opening in the Greater London area, with increased searches for On + London, and have experienced amazing community interaction through our ‘Monster Den’ pop-up in Liverpool this past spring.

“Looking ahead, we have ambitious plans to expand our retail presence in London and other key UK cities to engage with our growing communities,” she says.

On is not the only international sportswear brand eyeing up the UK as a huge opportunity. Inditex-owned Oysho opened its first-ever London flagship at Westfield White City in March. The brand operates in 56 additional international markets.

A spokesperson said the new flagship was designed to showcase its fitness, yoga, running, trekking and tennis ranges, adding that the new store has “reinforced its journey towards the world of sport.”

Heavy-hitting sports brand Under Armour has opened four stores in the UK this year, since debuting at Liverpool One at the beginning of 2023. The US retailer said this rapid store expansion “reflects the company’s consistent growth and increased consumer demand” in the UK – its fastest-growing region this year.

Hoping for similar success is French running brand Hoka, owned by Deckers Brands, which opened its first UK store in Covent Garden on October 5. Chief commercial officer Stefano Caroti said: “London is arguably the most influential athletic lifestyle footwear market in the world.

“It’s imperative that we double down in London and develop a marketplace strategy across performance and lifestyle to strengthen our presence in this key city.”

In it to win it

Despite the global strategies of JD Sports and Frasers, there is still room for growth for those international brands bringing new products and interesting ideas to the UK, said Peel Hunt analyst Jonathan Pritchard. 

“JD Sports has an exceptionally successful business here in the UK. They’ve got a very strong position and have been looking to widen their portfolio for many years [into other markets]. 

“But that doesn’t mean the UK is an unattractive market; it’s just that they’ve got a strong cash flow in the UK and can therefore invest effectively elsewhere.”

Domestic high-street giants may be turning their eyes to opportunities overseas, but it seems there has never been a better time for international sportswear brands to take a punt on the UK. It’s anyone’s game.