A recent Experian and Reward report showed interest in fitness surging in the UK and now a new study from data specialist CACI has reinforced that, with the company revealing a “significant spending increase in gyms and [on] fitness focused brands” in December compared to the year before.
CACI
It added that the more premium end of the market benefitted from the greatest year-on-year growth, matched by the popularity of athleisure, both offline and online, “as consumers show increased appetite for health and wellness beyond the traditional ‘New Year’s Resolution’ months of January and February”.
Popular gyms such as David Lloyd and Third Space saw the strongest double-digit growth (having seen similar success the previous year), while Nuffield Health, Pure Gym and The Gym also saw healthy jumps.
Importantly, a consequence of this was that the data pointed to athleisure as both a fashion and fitness choice showing no sign of slowing down.
Sweaty Betty was up 21% year-on-year for December, Lululemon rose 34.5%, and Gymshark 78.2%. Footwear brands that are pitching more at the fitness market are having success too, with Asics up 38.6% not long after a concerted marketing campaign for its Padel shoes.
CACI said the trend is also reflected by “online native brands moving into bricks-and-mortar, seeing the headroom for offline spend in athleisure and the value of physical experience”.
Alo Yoga has recently opened on Regent Street and in Covent Garden, and TALA has just announced its first physical store on Carnaby Street, “both set to benefit significantly from the online halo, gaining exposure to wider audiences and the increased online spend that results from having showrooms in prime West End locations”.
Lily Payne, Senior Consultant at CACI, said: “Some might see this as spending in December for use in the New Year, the old resolution habit. But the patterns and scale of growth for gyms and fitness brands suggests behavioural change. There’s a more consistent trend, positioning wellness experiences as more of an essential outgoing than an added expense, even in December when the spending pressures are usually on gifting and socialising.
“The rise in spending on gyms, particularly on the more premium end of the scale and with ‘club’ style offers over one-off visits, matched with the domination of athleisure, makes it very clear that consumers are fully invested in this space because of the positive wellness outcomes.”
Interestingly she added that it means “the higher cost associated with brands like Third Space and Lululemon becomes less of an obstacle; people want to experience luxury when it comes to fitness and wellness, and want the garments to match. The popularity of athleisure will continue as more and more ‘tribe’ brands like Alo and TALA come to the fore with their collections, as well as gyms which can offer a holistic experience, ticking all the right boxes for an increasingly wellness-focused consumer.”
Urban Outfitters announced on Wednesday full-year sales increased 7.7% to a record $5.55 billion, on the back of double-digit growth sales in the fourth quarter.
Urban Outfitters
The Philadelphia-based company said retail segment sales increased 4.7%, with comparable retail segment sales increasing 3.4%, driven by mid single-digit positive growth in digital channel sales and low single-digit positive growth in retail store sales. By brand, comparable retail sales increased 8.9% at Free People and 7.7% at Anthropologie, but decreased 8.7% at Urban Outfitters.
Wholesale segment sales increased 15.5% driven by a 17.9% increase in Free People wholesale sales, thanks to an increase in sales to specialty customers and department stores. The increases were partially offset by a decrease in Urban Outfitters wholesale sales.
For the three months ending January 31, the company clocked a net income of $120.3 million and earnings per diluted share of $1.28. Meanwhile, annual net income was a record $402.5 million and earnings per diluted share were $4.26.
“We are pleased to announce record Q4 revenues and full-year profits,” said Richard. Hayne, chief executive officer, Urban Outfitters. “Our success was driven by strength across all three segments – retail, subscription and wholesale. We believe these results demonstrate the effectiveness of our strategic initiatives and give us confidence in Urban’s continued success.”
During the twelve months ended January 31, the company opened a total of 57 new retail locations including: 37 Free People stores (including 25 FP Movement stores), 13 Anthropologie stores and 7 Urban Outfitters stores. Comparatively, it closed 30 retail locations including: 14 Urban Outfitters stores, 11 Anthropologie stores and 5 Free People stores.
According to a press release, Primark, the low-cost fashion retailer, is strengthening its commitment to the circular economy and sustainability by introducing textile collection points in its stores across Spain this spring.
Primark to launch in-store second-hand clothing and textile collection in Spain this spring. – Primark
In parallel, the company is offering free repair workshops in several of its stores in Spain while expanding its textile collection program to extend the lifespan of garments, reduce waste, and contribute to a more circular fashion economy.
The collection points will be available in Spain this spring after being successfully implemented in the UK, Ireland, Austria, Portugal, Germany, and the Netherlands.
Customers will be able to drop off clothing, footwear, accessories, and home textiles—regardless of brand or condition—at designated collection points in stores.
The company’s collaboration with Yellow Octopus ensures that these items will be reused or recycled. All profits from the program will be donated to Unicef, which supports access to education, healthcare, clean water, and humanitarian aid for children in crisis situations.
Additionally, repair workshops are designed to teach essential sewing skills, such as replacing buttons, fixing zippers, and adding pockets, helping consumers extend the life of their garments.
After piloting this initiative in several European markets, Primark has already conducted over 400 repair workshops in France, Italy, the Netherlands, the UK, and Ireland, offering more than 7,000 free sessions to customers and employees. In Spain, workshops will take place in Madrid, Málaga, Zaragoza, and Barcelona before expanding to A Coruña, Bilbao, Madrid, Sant Cugat, Seville, and Valencia later this year.
Carlos Inácio, general manager of Primark Iberia, reaffirmed the company’s commitment to “making fashion more sustainable by helping customers extend the lifespan of their garments.”
He also added, “Through initiatives such as our repair workshops and textile collection program, we take steps towards a more circular approach to fashion. We believe that small changes—like learning how to mend a garment or recycling textiles responsibly—can make a big difference in reducing waste and building a more sustainable future.”
These initiatives fall under Primark Cares, the brand’s global sustainability strategy. Additionally, the retailer has committed to improving garment durability by 2025 and has introduced a durability framework developed in collaboration with environmental organization Hubbub and the University of Leeds School of Design.
Retail property giant British Land may have been focusing more heavily on retail parks in recent periods but it still has major flagship shopping centre sites in its portfolio and has just announced a raft of fashion signings for its prestigious Broadgate development in central London.
Broadgate – British Land
It said this week that it’s seen “a strong start to the year at Broadgate, further strengthening the campus’s retail offering”.
Major fashion brands Ralph Lauren, Mango, Luca Faloni, Hobbs and Whistles are taking space at Broadgate Central, which spans the ground and lower ground floors of 1 Broadgate and 100 Liverpool Street, linking Liverpool Street station to Finsbury Avenue Square
1 Broadgate will complete later this year with the building’s office space 96% pre-let. The wider campus continues to see strong office leasing activity and since the start of the calendar year, British Land has agreed terms or placed under offer 200,000 sq ft to businesses across a range of sectors.
What that means for retailers in that, as well as sizeable footfall passing through Liverpool Street station, there’s a massive pool of potential customers who’ll be working in the immediate vicinity on multiple days each week.
Overall, the company said Broadgate consistently attracts high footfall of over 29 million visitors a year, with retailers most recently seeing a 4.6% increase in sales year-on-year.
CEO Simon Carter said: “This is a strong start to the year for Broadgate. The demand we’ve seen for workspace across the campus is due to its excellent connectivity and unrivalled range of amenities, with businesses seeking high quality space within a well located, thriving environment. The fantastic additions to our retail offer at Broadgate Central will only enhance the campus’s appeal.”