Sports Clothing and
Footwear
Executive Summary – UK – August 2011
Sports Clothing and Footwear
Executive Summary – UK – August 2011
Emma Clifford
Clothing & Fashion Analyst
The stagnation in the number of sport
participants in the UK means that
encouraging sales through existing
physically active customers and focusing
on fashion purchases will become
increasingly important for sports
retailers. The 2012 London Olympic
Games promised to get more Britons
involved in sport, however, this has
failed to show fruition as yet, leaving the
long-term impact of this mega event on
people’s lifestyles uncertain. There is
scope for sports retailers to step up to
the bar and help to expand their own
pool of customers by creating incentives
to drive participation.
1
Sports Clothing and Footwear
Executive Summary – UK – August 2011
The Market
Figure 1: Best and worst case forecast value sales of sports clothing, 2006-16
6,500
Best case (£m)
6,259
6,000
Mintel forecast (£m)
5,712
Market value (£m)
5,500
Worst case (£m)
5,164
5,000
(£m)
4,007
4,500
4,000
3,500
3,000
Confidence intervals
95%
2,500
2,000
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Est.
90%
70%
50%
Actual
Forecast
Source: Mintel
The total sports clothing and footwear market is valued
at £4.8 billion in 2011, a growth of 18% since 2006,
according to Mintel estimates. Forecasts indicate that
the market will be worth £5.9 billion by 2016. Figure 1
refers to the sports clothing market, not the total
sports clothing and footwear market.
Strong recovery for sports clothing in 2010, but
pace slows
Mintel estimates that the value of the sports clothing
market increased by 21% over the past five years and is
worth £3.3 billion in 2011. This eclipses the
performance of the clothing market as a whole
(including men’s and women’s outerwear and children’s
clothing), which grew 9% over the same time frame.
This highlights the growing influence that sportswear
has within the fashion market and its relative resilience
in the prolonged tough trading conditions, buffeted by
its versatility to be worn for both practical and leisure
purposes.
Growth of the sportswear market was almost static in
the recessionary climate of 2009; however the following
year experienced a strong 7% spike in expenditure. This
return to strong positive territory coincided with the
FIFA World Cup, as football-related sales soared,
particularly at the large sports multiples.
2
Mintel forecasts that sales of sports clothing will
increase by 23% between 2011 and 2016 to achieve a
value of £4 billion. Over this period, however, the pace
of recovery is anticipated to slow in the prevailing midst
of low consumer confidence and prolonged strain on
disposable incomes in a turbulent economic landscape.
The escalating production costs of sports apparel –
owing to rising manufacturing costs, the soaring price of
cotton and the increase in VAT – exert additional
pressure on the industry.
Sports Clothing and Footwear
Executive Summary – UK – August 2011
Figure 2: Best and worst case forecast value sales of
sports footwear, 2006-16
Market Factors
2,500
The Olympic opportunity
Best case (£m)
2,043
Mintel forecast (£m)
1,827
Worst case (£m)
1,611
Market value (£m)
2,000
(£m)
1,548
1,500
1,000
Confidence intervals
500
95%
90%
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
70%
Est.
50%
Actual
Forecast
Source: Mintel
Important sporting events have a track record of
triggering higher levels of consumer spending, for
example Sports Direct claims that the FIFA World
Cup 2010 injected as much as £20 million in extra
sales with its strongest ever day of trading when
England played the USA. The capital’s hosting of the
2012 Olympic Games – which will see 10,500 athletes
take part in some 302 sports over 17 days – presents
a significant marketing opportunity for UK retailers
and is anticipated to provide a considerable boost to
the industry. Mintel’s research reveals that just over
one in ten (12%) consumers are likely to buy more
sportswear when a big sporting event is on.
Retailers will benefit from sales of Olympic-themed
merchandise (they need to follow stringent guidelines
imposed by the London Organising Committee of the
Olympic Games (LOCOG)), and spectators may want
to purchase items akin to those worn by athletes. It is
hoped that the Games will inspire higher levels of
participation – a fundamental promise of London’s
Olympic legacy – driving performance-related
sportswear sales. However, with stalling rates of
sports participation, the extent of the longer term
impact on both people’s sporting habits and the
market as a whole, remains uncertain.
Sports footwear forecast to grow by 18% up to
2016
Sports footwear has enjoyed healthy growth of 12%
between 2006 and 2011, with the market reaching a
value of £1.5 billion. However, this has lagged behind
the performance of the total footwear market, which
has experienced growth of 17% over the last five years
and is estimated to be worth £4.4 billion in 2011.
Sports footwear sales were much more severely
affected by the economic downturn than sports
clothing, contracting by 6% in 2009. However, the
market bounced back with renewed vigour in 2010
and 2011, seeing annual growth of 11% and 5%
respectively. Sports shoes are a major component of
the footwear market, making up over a quarter (26%)
of its overall value.
The value of the sports footwear market is set to be
worth £1.8 billion in 2016 according to Mintel’s
projections, a robust growth of 18%.
3
Sports Clothing and Footwear
Executive Summary – UK – August 2011
Stagnating rates of play
Individual and fitness-focused sports are significantly
more popular than team games. Running and jogging
have encountered the greatest growth in participants
over the last five years, indicating that consumers are
gravitating towards low-cost (or free) and convenient
options for their fitness needs, which can easily be
fitted around their busy lifestyles. These solo sports
tend to require comparatively little kit, which can be
purchased on an infrequent basis. This presents a
challenge to sports retailers, who must focus on the
performance-enhancing benefit of items such as
specialist running shoes.
Figure 3: Trends in attitudes towards health and
fitness, 2006-10
Base: adults aged 15+
60
55
55
55
55
53 53
53
54
52
I do some form of sport
or exercise at least
once a week
50
%
50
48
44
45
Ageing population poses a threat
I should do a lot more
about my health
44
As it expands, the UK population is experiencing a
boom in the number of older consumers, with the
over-65 age group projected to increase by 13% over
the next five years to 19.3 million. Meanwhile, the 1519 and 20-24 age groups are predicted to decline by
7% and 4% respectively by 2016, equivalent to
approximately 438,000 15-24s. Sport and exercise is
dominated by the younger generation, and rates drop
off dramatically in line with age. Mintel’s research
shows that over six in ten over-65s do no form of
sporting endeavour, compared to just three in 20
(14%) under-25s. The popularity of sports clothing and
footwear worn as leisure attire also peaks among the
under-25s, so diminishing numbers of these shoppers
will hinder the performance of the industry.
42
42
Trying to lose weight
40
36
35
30
2006
2007
2008
2009
2010
Source: GB TGI, Kantar Media UK Ltd Q1 2007-11
(Oct-Sep)/Mintel
According to both TGI and Sport England data, the
upward progression in sports participation has ceased
and rates dropped marginally in 2010, with just over
half (54%) of consumers doing some form of exercise
at least once a week. Club membership has also fallen,
as consumers curtail their discretionary spend in
response to stretched disposable incomes. Public
spending cuts by the UK’s Coalition Government,
including slashed funding for school and elite sport,
could have a further negative effect on participation
rates. Sports retailers can no longer rely on an
expanding number of participants and must try to
offset the negative implications of a depleted sporty
consumer-base.
Socio-economic shifts benefit market
Sport is predominantly an upmarket pastime; TGI data
indicate that over six in ten (63%) ABs take part in
some form of weekly exercise compared to half of
C2s and just over four in ten (42%) Es (which includes
state pensioners). The population of ABs is forecast to
hit 14.8 million by 2016, a strong growth of 6% on
2011 levels. These consumers are the keenest players
and tend to have the means to spend on their hobbies,
driving demand for high quality sports products that
aid performance and heighten enjoyment in their
individual sporting field.
4
Sports Clothing and Footwear
Executive Summary – UK – August 2011
its estate and profitability, particularly following a
highly valuable FIFA World Cup in 2010. JD Sports –
where a fifth of sports shoppers head to – is also
expected to power ahead of JJB Sports following
extensive brand and retail acquisition.
The C2 category, however, is expected to experience
the most extensive growth, expanding by 8% to 11.9
million over the next five years. Although these
consumers are less physically active, they are the most
likely group to purchase items such as trainers, sports
T-shirts, replica football shirts and fleeces – mainly to
be worn as casualwear or for fashion purposes. These
categories are therefore likely to witness the greatest
increase in demand over the next few years.
Customers at Sports Direct and JJB Sports are
primarily male C2DEs, however fashion-orientated JD
Sports appeals more to ABC1s and has an equal
proportion of men and women.
Companies, Brands and
Innovation
Growing influence of the internet
A quarter of buyers of sports clothing and footwear
shopped online in the last year from e-tailers such as
Amazon, M and M Direct, ASOS and eBay. Online
shoppers tend to be male, under 35, in full-time
employment and from higher income households.
Many price-savvy shoppers are deserting the big sports
retailers and independents and instead turning to
online retailers in pursuit of the lowest possible prices
on easily comparable branded sports clothing and
footwear.
Figure 4: Outlets from which sports clothing and
footwear have been purchased in the last 12 months,
by estimated number of shoppers, June 2011
Base: 1,510 internet users aged 16+ who bought sports clothing and
footwear in the last 12 months
Number of shoppers aged 16+ (000s)
39% (20,082)
Sports Direct
32% (16,407)
JJB Sports
25% (12,836)
21% (10,817)
Internet store
JD Sports
12% (6,056)
Next
Footwear shop
Mail order
Marks & Spencer
Independent sports shop
Department store
Non-specialists such as supermarkets, value clothing
retailers, Marks & Spencer and Next are increasingly
influential players in the sports clothing and footwear
industry, taking advantage of the growing popularity of
this category as casual leisure attire. They tend to be
favoured by women, who are most likely to think that
retail-branded sportswear is as good as sportsbranded gear. The supermarkets’ success in the sector
lies in their convenience factor and their extreme
value for money – George at Asda, for example, sells
basic joggers from £4 and T-shirts from as low as £2.
19% (9,834)
Value clothing retailer
Outdoor clothing store
Non-specialists encroach upon the market
19% (9,989)
Supermarket
11% (5,434)
10% (5,331)
10% (5,176)
9% (4,658)
9%(4,606)
8% (4,244)
Other sports specialist retailer
6% (2,898)
Mid‐market fashion shop
6% (2,847)
Somewhere else
13% (6,521)
Source: GMI/Mintel
Independents fighting a losing battle?
Sports Direct dominates
Less than one in ten consumers made purchases of a
sporting nature at independent sports retailers, putting
them behind many non-specialist stores. The key
demographic for independent outlets are AB
consumers in the 25-34 age group. Cyclists and golfers
are most likely to shop at independent sports stores.
Sports Direct commands the mainstream multiple
sector, with four in ten (39%) sportswear buyers
heading to this outlet in the last year, equivalent to 20
million UK adults. Nearly a third shop at JJB Sports –
the market’s longest established multiple – making this
the second most popular destination in Mintel’s
survey. However, Sports Direct looks set to extend
its leadership over its rival, as JJB Sports plans to close
95 stores by April 2013 following prolonged financial
troubles. Meanwhile, Sports Direct continues to grow
5
Sports Clothing and Footwear
Executive Summary – UK – August 2011
Mass consolidation of the market, the growing
influence of e-commerce, increases in rent and the
rising cost of sportswear have forced many
independents into closure in recent years. However,
their credentials as experts in the market still holds
appeal for the real sports enthusiasts, who may prefer
a more traditional customer service approach. This
element of knowledge-sharing and specialist advice will
be vital for the future of the independent sector.
Football is the most popular sport for men, with 5.8
million males (23% of the adult male population)
playing football on a monthly basis. A fifth of women,
corresponding to 5 million females, swim, making this
their favoured type of exercise. The leading activities
for the most physically engaged 16-24s are running
(39%) and going to the gym (36%), whilst all older age
groups have a preference for swimming, a much lower
impact activity.
The Consumer
Fashion over function
Figure 6: Sports clothing and footwear purchased in
the last 12 months, by reason for purchase, June 2011
Over a third not engaged in sport
Base: 2,000 internet users aged 16+
Figure 5: Sports and physical activities participated in,
by gender and socio-economic group, June 2011
50
43
40
45
% internet users aged 16+
Base: 2,000 internet users aged 16+
42
39
40
% internet users aged 16+
35
33
30
24
20
27
26
22 22
22
16
18
15
12
10
31 31
8
10
5
30
13
10
10 9
10
6
4
8
10
7
7
7
4
0
25
20 19
15
23
22
2122
18
23
20 21
2019
18
17
14
17
15
10
16
14
14
12
11
11
11
8
8
5
5
3
For sport
10
8
7
6 6
4
5
5
7 6
5
Source: GMI/Mintel
2
1
0
Male
Female
ABC1
Casualwear or fashion purposes
The majority of sports clothing and footwear
purchases are made with intent to be worn as
casualwear rather than for practical purposes,
emphasising the instrumental role that fashion plays in
the performance of the market. Trainers, hoodies and
fleeces are particularly bought to be worn as leisure
attire, while it is only items designed for specific
activities, like vests and leggings for aerobics or
running, that are predominantly bought for functional
reasons. It is vital for sports retailers to keep at the
cutting edge of sport style trends, for example with
designer or celebrity collaborations and exclusive oneoff collections, to attract the fashion hungry under25s, who are crucial to the industry. Endorsement
from celebrities from the music industry may be
particularly effective within the sports clothing and
footwear market.
C2DE
Source: GMI/Mintel
Mintel’s latest research indicates that three in ten men
and four in ten women – equivalent to 7.8 million and
10.3 million adults in the UK respectively – do not
take part in any form of sport. Patterns of sports
participation display a socio-economic skew, with over
four in ten (42%) C2DEs avoiding exercise (rising to
69% of E consumers, which includes state pensioners),
compared to just three in ten ABC1s.The challenge to
the industry is to promote spending among the entire
participation spectrum, from the non-players, by
focusing on the fashion and leisure element, through
to those at the top levels of ability and commitment.
6
Sports Clothing and Footwear
Executive Summary – UK – August 2011
Popularity of trainers prevails
Tracksuit bottoms are marginally favoured by women
(43% of women compared to 39% of men), and are
very popular among under-25s (60%). The allure of
jogging bottoms lies primarily in their comfort and
ability to be worn as cosy loungewear. The market for
joggers has benefited from the fashionable, relaxed
post-yoga look, popularised by Sweaty Betty. Sports
vests and leggings show a significant female bias, sales
of which are boosted by the spreading popularity of
running, yoga and aerobics.
The overwhelming popularity of trainers for everyday
wear prevails and they remain both a leisurewear
wardrobe staple and an essential piece of kit for
virtually all sporting activities. Nearly six in ten (58%)
adults have bought sports shoes in the last year,
peaking among men (63%) and the under-25 age group
(72%). Both TGI data and Mintel’s research show that
the popularity of trainers has increased over the past
couple of years, aided by both the growing numbers of
runners and the fashion for retro plimsoll-style shoes,
such as Converse.
Socio-economic divide
Figure 8: Sports clothing and footwear purchased in
the last 12 months, by socio-economic group, June
2011
Gender influences choice
Figure 7: Sports clothing and footwear purchased in
the last 12 months, by gender, June 2011
Base: 2,000 internet users aged 16+
70
AB
Base: 2,000 internet users aged 16+
63
Male
Female
60
% internet users aged 16+
53
50
43 43
39
20
C2
50
40
30
20
10
33
30
% internet users aged 16+
70
40
C1
60
31 30
25
20
10
23
28
26 25
23
21
20
17
16
10
11 12
7
0
8
8
11
11
9
0
Source: GMI/Mintel
There appears to be a division in the market between
sports items which are bought by the higher and lower
social-economic groups. Trainers, football shirts,
sports T-shirts and fleeces are predominantly
purchased by C2 shoppers, for example, whereas
jogging bottoms, shorts, sports and quilted jackets,
rugby shirts, sports jackets, garments for other sports,
waterproofs, leggings and vests are most popular
among ABs. Interestingly, hoodies, despite their deeply
negative association with teenage delinquency –
especially considering the recent riots in the UK – are
slightly more likely to be bought by an upmarket
clientele. Purchasing behaviour drops off dramatically
for E consumers, linked to their age and limited
spending power.
Source: GMI/Mintel
Men are the principal drivers of sportswear sales as
they are more engaged than women in both spectating
and participating in sport, and they tend to prefer
branded products. Sport T-shirts, usually with a
prominent brand logo, and shorts appeal mainly to
men. Similarly, football shirts, shorts, sports jackets,
sportswear for other sports and waterproof clothing
show a strong gender divide.
7
D
Sports Clothing and Footwear
Executive Summary – UK – August 2011
Purchasing linked to high internet usage
The price tags of sports-branded products is a
controversial issue, with the majority of consumers
(69%) believing that they are too expensive – and
three in ten strongly agreeing with this sentiment.
Older consumers and those from less affluent
households are most likely to be unhappy about the
expense of brands such as Nike and Adidas. Almost
half (46%) of consumers do not think it is worth
spending a lot of money of sportswear and over four
in ten (43%) think that retailers’ own-branded
merchandise is as good as sports-branded items. This
clearly demonstrates that the big sports names no
longer possess the power that they once held over the
industry.
There is a strong correlation between people who buy
sports clothing and footwear and intense internet
usage (seven or more hours per day), suggesting that
this means of advertising could have a substantial
impact on sport retailers’ key target audience – the
under-25s. However, online advertising currently
accounts for a minute proportion of total media
expenditure (5%) and has fallen over the past few
years. This presents an opportunity for sports brands
and stores to increase their attention to online
marketing strategies.
Sports brands overpriced
Sports participants are more likely to disagree with
these statements and are more willing to pay a
premium for specialist sports brands; however, even
among these consumers the over-riding feeling is that
these items are too costly.
Figure 9: Sports clothing and footwear purchased in
the last 12 months, by socio-economic group, June
2011
Base: 2,000 internet users aged 16+
Sports brands are too expensive
I only buy to replace worn items
55
17
I buy bargain sportswear during sales or on auction sites
48
15
I don’t think it is worth spending a lot on sportswear
Most sports shops are too focused on fashion these days
46
18
Replacement is the primary reason for purchase
45
14
Retailer branded sportswear is just as good as sports‐branded
43
15
I buy sportswear to wear with my regular clothes
31
40
Most consumers (55%) only buy new sports clothing
or footwear out of necessity when their old items
have come to the end of their functional lives, peaking
among 55-64s (62%). The challenge to the sports
apparel category is to increase frequency of purchase
by creating reasons to want new items other than
merely replacement, for instance improvements in
fabric technology.
Agree
Disagree
34
31
I prefer to buy branded sportswear
Sports shops only cater for young people
28
I tend to buy fashionable rather than performance trainers
27
25
I have bought more sports clothing since doing more sport
More likely to buy sportswear when a big sporting event is on
Unwilling to pay a premium price for sports brands,
shoppers are increasingly hunting out bargains, either
by waiting for sales or turning to auction sites such as
eBay (48%).
69
8
12
33
39
41
65
% internet users aged 16+
Continued development of products which promise to
enhance the performance of sports participants in new
and innovative ways will help to drive sales from keen
players, who are already more willing to buy
sportswear as a ‘want’ rather than a ‘need’ purchase.
Similarly evolving styles and designs will appeal to the
trend-led under-25s, who are more liable to make
impulse purchases to keep up with the latest fashions.
To entice consumers into buying new ranges, it is also
important for them to showcase the merchandise in
new and compelling ways, or enhance their offerings in
terms of service, for example by offering free
biomechanical assessment for footwear buyers.
Source: GMI/Mintel
8
Sports Clothing and Footwear
Executive Summary – UK – August 2011
Too focused on fashion
What we think
Sports multiples’ foray into fashion and leisurewear
has allowed them to cast their net over a greater
source of potential customers and it is this broad
appeal that has insulated the market from the impact
of the recession. However, with the majority of items
now being purchased to be worn simply as casual
clothing, sports retailers risk losing their identity as
specialists in the field. Over four in ten (45%)
consumers think that these outlets have become too
focused on fashion these days.
The sports clothing and footwear market faces many
obstacles over the next few years, not least the UK’s
ageing population and dwindling numbers of the
industry’s key age group – the under-25s. Stalling rates
of regular sports participation are evident from both
TGI and Sport England data, and this is likely to be
exacerbated by public funding cuts to the sports
sector. Sports retailers therefore will no longer
benefit from a growing pool of players. It is also
questionable whether the London 2012 Olympic
Games will be enough to reinvigorate interest in sport.
Sports participants – particularly those who cycle and
players of tennis and golf – are most disgruntled by the
shift in attention away from practical sport and
towards fashion. These retailers may not be
sufficiently catering for the most devoted sports
players, in terms of the range of items and quality of
garments, who instead turn to specialists for their
activewear. Striking the optimum balance between
functional sportswear and fashion attire, and not
overlooking customers from any part of the
participation scale, is the challenge sports outlets face.
The importance of fashion to the performance of
sportswear sales is not to be underestimated; the
majority of purchases of trainers and sports garments
are made to be worn as comfortable or stylish
casualwear rather than for practical purposes. This
versatility and broad appeal has insulated the market
from both recessionary climes and the public’s
diminishing participation in sport. However, many
consumers think that these retailers have become too
orientated towards fashion and have lost their essence
as experts in the sporting field. They run the risk of
alienating the athletes at the top levels of ability and
players of less mainstream sports. In order to
maximise sales, retailers need to strike the optimum
balance and maintain their credentials as both sport
specialists and trendy fashion destinations.
Under-35s driving spectator sport related
sales
Just over one in ten consumers are more likely to buy
sportswear when a big sporting event is on, and two
thirds actively disagree with this statement. So even
though retailers report rising sales to coincide with
important sports events, consumers do not believe
they are influenced in their purchasing behaviour by
these occasions. Most interest comes from under-35s,
a fifth of whom are inspired to make purchases during
events such as the FIFA World Cup and the Olympic
Games. Football (35%) and tennis (37%) players have
the highest tendency to agree with this sentiment,
with sales of football shirts in particular surging during
important tournaments.
The overriding feeling is that sports brands are too
expensive and price-savvy consumers are increasingly
comparing prices, searching for promotions and
hunting out the ultimate bargains online, in a market
where price-slashing is rife.
The mass consolidation within the market, and the
dwindling number of independents, which are being
pushed out of the market, means that a lot of the
customer service element, in terms of knowledge and
advice, is being lost. To tempt people away from the
internet and back into the bricks-and-mortar stores,
retailers need to offer something extra that e-tailers,
such as Amazon, cannot provide. They also need to
develop inventive ways to break people’s inclination to
buy only for the mundane reason of replacement.
Retailers could place more emphasis on playing an
advisory role, with added value given in the form of
performance enhancing services such as free
9
Sports Clothing and Footwear
Executive Summary – UK – August 2011
biomechanical assessment for runners. There is also
scope for shops to become involved in encouraging
higher levels of participation to expand their source of
customers. The introduction of store loyalty schemes
that give shoppers reduced participation fees in local
sporting facilities would be a good way to drive repeat
custom while getting more people physically active.
This idea could also be applied to children, by offering
discounted entry fees into activity zones, such as
Crazy Kids, with children’s sportswear purchases.
10
Sports Clothing and Footwear
Executive Summary – UK – August 2011
Emma Clifford
Clothing & Fashion Analyst
E-mail eclifford@mintel.com
Telephone +44 (0) 20 7606 4533
Emma researches and writes Mintel’s UK fashion and clothing
reports. Emma gained retail experience from her time
working within Debenhams distribution department at the
company’s head office. She has also worked at Marketforce,
providing analytical support to internal departments and
publishers. Emma has a First class Honours degree in
Environmental Earth Science.
11