2023-02-03-莱坊-Sport,_social_phenomenon,_real_estate_phenomenon_Part_1_26页_10mb

FASTER, HIGHER, STRONGER: SPORT AND RETAIL PROPERTY IN 2023

Core Content

This document explores the evolving dynamics of the sports and retail property market, emphasizing the growing influence of sports brands and the phygital retail experience. It highlights how the sports sector has become a major economic force, driven by the rise of athleisure, the impact of the health crisis, and the increasing importance of direct distribution and flagship stores in the retail landscape.

Main Points

1. Sports as a Societal and Economic Phenomenon

• Sport has become a central part of modern society, especially after the health crisis, which shifted focus to wellness and remote work, freeing up time for physical activity.
• The athleisure trend has gained traction, combining athletic wear with casual lifestyle, and is expected to continue growing.
• Global sports goods sales are projected to reach nearly €400 billion by 2025, up 30% from 2019.

2. Retail Real Estate Trends in Sports

• The sports retail market is booming globally, with major cities like Paris, New York, and London seeing the opening of flagship stores.
• Paris is becoming a key market for sports retail due to its status as a streetwear hub and the 2024 Summer Olympics.
• Flagship stores are now more than just retail spaces—they serve as experiences, offering services like fitness classes, art exhibitions, dining, and social interactions.

3. Direct Distribution as a Strategic Priority

• Leading brands like Nike, Adidas, Puma, and Under Armour are prioritizing direct distribution to maintain control over brand image and customer relationships.
• Nike aims to increase direct distribution from 39% in 2021 to 60% by 2025, with a focus on online sales and selective third-party partnerships.
• Adidas is also shifting its strategy, reducing the number of stores by 22% over five years and focusing on key cities.

4. Digital Transformation and Phygital Concepts

• The sports sector is highly digitalised, with brands using social media and interactive technologies to engage with younger, more connected consumers.
• Phygital concepts—combining physical and digital experiences—are becoming more common, especially in fitness and lifestyle retail.
• In France, while phygital concepts are not yet widespread, sports and leisure activities like climbing walls and gyms are increasingly integrated into retail spaces.

5. Market Leaders in France

• The French sports retail market is dominated by Decathlon and Intersport, with Decathlon being the largest in terms of turnover (€4,200M) and number of stores (324).
• Intersport has been expanding through new formats and urban concepts, including BLACKSTORE and streetwear.
• Nike and Adidas are also significant players, with Nike having 30+ stores and Adidas having over 80 stores in France.
• Other notable brands include Lululemon, Foot Locker, and Puma, though their presence is smaller compared to global scale.

6. Consumer Behavior and Market Performance

• Multi-channel customers are a key target, spending 34% more than in-store-only customers and 7% more than online-only consumers.
• Online sales have increased significantly, with Decathlon seeing a jump from 8% to 21% of total sales between 2019 and 2021.
• Despite a 10% decline in sports and sportswear sales in Q3 2022, the sector has shown resilience, with 23.6% year-on-year growth in 2022 (up to October).

7. New Entrants and Market Diversity

• New international retailers such as JD Sports, Foot Locker, and Lids are entering the French market, contributing to its diversification.
• Streetwear brands like Kith, Supercaly, and Palm Angels are also setting up shop in France, enhancing the lifestyle dimension of sports retail.

Key Information

• Nike has grown its revenue by 40% in five years and plans to increase direct distribution to 60% by 2025.
• Lululemon has seen its revenue sixfold since 2010 and aims to double it by 2025.
• Decathlon is the largest sports retailer in France, with a turnover of €4,200M and 324 stores.
• Athleisure is a key driver of growth, with global sales increasing by 42% between 2016 and 2021.
• Flagship stores are more than just retail spaces—they are destinations that offer interactive experiences, brand storytelling, and community engagement.
• The sports retail market in France is increasingly diverse, with a mix of traditional retailers, digital-focused brands, and new entrants.

Summary of Market Trends

• Global sports retail is expanding, with flagships becoming key assets for brand visibility and customer engagement.
• Direct distribution is a strategic focus for leading brands, allowing greater control over supply chain and brand image.
• Digital integration is reshaping the retail experience, with brands leveraging social media, interactive tech, and phygital concepts.
• France is seeing growth in sports and leisure retail, especially in fitness, cycling, and climbing.
• The French market is dominated by Decathlon and Intersport, but new players are increasing competition and diversifying the retail landscape.

Conclusion

The sports retail market is evolving rapidly, driven by digital transformation, consumer trends, and strategic store openings. Brands are investing in flagship stores to create immersive experiences and direct distribution to enhance control and customer relationships. In France, Decathlon and Intersport lead the market, but the entry of new international and lifestyle brands is contributing to a more dynamic and diverse retail environment.