It may still be early, but when you think about the retail sector in 2025 the word 'growth' might not be the first word that comes to mind.
Things aren't dire in the industry — not by a long shot. Several large names have filed for bankruptcy in recent months, but the volume of filings isn't breaking any records. And there certainly are exceptions; large incumbents like Walmart and Amazon will almost always be in growth mode.
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By and large, the name of the game in today's retail landscape is consolidation. Smaller rivals tend to be beaten out by larger corporate giants with the cash and floorspace to gobble up competitors. Expansion is cash intensive and takes a lot of convincing; and unless you've got rock bottom prices, swaying customers toward you is a pretty difficult feat.
Of course, there are always going to be flashy and exciting upstarts. Particularly in the apparel industry. Though clothing and accessories are more expensive than they were a year ago (about 1.2%, based on the most recent CPI reporting), many shoppers still buy themselves at least few new items of apparel each year.
This isn't just good news for giant purveyors like Walmart or Target. It's good news for some of the most popular brands, particularly in the athletic space.
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Athletic apparel remains a robust market
This is particularly true in the athletic and leisure apparel space, commonly referred to as athleisure. While many other corners of retail are consolidating, the athleisure space is almost splintering, leaving plenty of room for up and comers to gain a foothold.
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The space had previously been dominated by just a few players, namely Nike (NKE) , Adidas (ADDDF) , and Puma. But that's changed as American tastes have changed.
As new fitness fads popularize, so too do their accompanying apparel. As yoga and pilates gained popularity over the past two decades, Lululemon (LULU) ballooned into the giant it is today, with a now over $47 billion market cap.
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Now, activities such as Crossfit, Pilates, barre, boxing, cycling, and even rowing are widely available for participation across the country. And each activity tends to favor at least one brand over another.
Which is why we are now spoiled for choice with dozens of athleisure brands to shop from. And it's no longer impossible to build a following; niche brands like GymShark, Vuori, Alo Yoga, and Sweaty Betty have seemingly gone from obscurity to meteoric popularity, thanks in part to social media.
Skechers looks to compete with giants
But these days, it's not enough to simply get your name out there and hope for traction on social media.
Skechers (SKX) , the favorite footwear company of the 90s, has been going through something of a rebrand in recent years. While it had previously been known as a comfort footwear brand, it's now started to pivot to performance wear, seeking to compete with other performance brands like Nike and New Balance.
It recently opened its first ever performance store in Edmonton, Canada. The store offers customers half courts for pickleball and basketball so customers can test out Skechers' performance on different surfaces. It also sells sneakers and apparel for golf, soccer, running, training, walking, and hiking.
Skechers has made no secret about its ambitions to enter the more competitive space. It launched soccer cleats in 2023 and inked a deal with England national star Harry Kane as a brand ambassador. It's also signed Joel Embiid as a partner in the NBA.
The new store offers Skechers' largest assortment of footwear and apparel, according to Michael Greenberg, president of the footwear company.
It currently has 5,300 stores worldwide, and its most recent quarter saw sales lift by 16% to $2.35 billion.
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