GYMSHARK LONDON STORE: A MASTERCLASS OF SPORTS RETAIL ERA

At 19, Ben Francis started Gymshark in a garage in Birmingham, UK, with a sewing machine, a screen printer, and a lot of ambition. He probably didn't expect that his company would grow to be worth over £1 billion and have a global revenue of £554 million by 2023, just twelve years later.

From its origins as a small online retailer in the UK and Europe, Gymshark boldly expanded its reach to the US and entered the brick-and-mortar business.

In a move that showcased its rapid growth and adaptability, it opened its first store on the iconic Regent Street in London in October 2022.

Following the success of the Regent Street store, the company will open a second store in London, Westfield Stratford shopping centre, this summer and a one-year pop-up store in New York.

But what have been the levers of such success for the London flagship store?

Interestingly, Gymshark's London flagship store stands out in the sports retail for its unconventional approach.

It's not about the size of the selling space, which is considerably smaller than its competitors, or the broad range of categories, selling only training apparel and accessories. Even the layout is unique, with fitting rooms placed exclusively on the first floor and a large stair at the entrance, followed by a juice and sandwich bar.

The leitmotiv of the store conception is Gymshark's purpose: to unite the community of athletes, employees and followers who work out to pursue their personal goals.

The company has built up a large community of members, growing to a remarkable 18 million social media followers in a few years. Gymshark's Instagram account has 7 million followers, compared with 8 million for Under Armour or 29 million for Adidas performance.

Then, designing a space for the Community to engage and experience together is one of the levers for the store's success.

Community features:

A variety of free daily group training classes in-store can be booked using the Gymshark App.

Free run club for different types of runner levels.

Open events are held for everyone and shared and streamed on social media. The space can quickly become a real gym thanks to the movable fixtures system and the flooring specification.

Authentic embracement of diversity and inclusion with in-store training classes and

Pride Month for the LGTBQ+ community with a permanent slogan and exclusive products.

As a consequence of this community space creation, the store

• Differentiates itself from competitors in the area.
• Enhances Gymshark advocates that will promote and defend the brand online.
• Visiting consumers become ambassadors and will invite their network to the community.
• It makes the employees feel part of the community and enhances their motivation.
• It increases footfall, with an expected potential boost in Sales.

The second relevant lever for the store's success is the Experience element. The store has been designed for the whole community and to attract new members by experiencing the Gymshark purpose.

Experience features:

Several training spaces, including specialised equipment for workouts, like the sweat room and the pro bench studio.

A locker room for the community to provide a convenient area for personal belongings while training.

1to1 training consultations are available to be booked at the Gymshark App.

1to1 personalised shopping is available in-store and through the App.

A “Joe and the Juice” bar, open to anyone who wants to grab a shake or a sandwich.

Fitting rooms with a switch to call for assistance and others to create perfect lighting for your convenience, playing for your favourite pic to post (funny message signs included).

As a result of the implementation of these experiential areas, the store

• Creates a unique space for gym fans in the centre of London.
• Enhances the retail space and the shopping experience beyond a transaction process.
• It increases the willingness of consumers to return to the store and boosts customer loyalty to the brand.
• It allows employees to develop skills other than the sales associate and be more productive.
• It raises consumer satisfaction, reflected in the net promoter score.
• Boosts the conversion rate, potentially increases the units per ticket in the basket, and definitively sales growth.

Conclusions

Undoubtedly, the Gymshark Regent Street store has set the path for what brick-and-mortar in sports retail needs to be to make a company investment and a brand statement.

From the perspective of a retail professional, questions need to be answered regarding the level of service cost, CAPEX investment, profitability, etc. From a marketer's perspective, there is probably a balance between ROI and brand impact, engagement, and global reach.

However, from the consumer’s perspective, the store is brilliant! There is nothing comparable in London, and GEN Zers consumers are outnumbering other visitors in the store—there is such a desire for other competitors.

Acknowledges: While the Gymshark store's financial results are not publicly available, and the company's annual report only mentions that the store’s sales have been above expectations, this analysis provides insights from on-site visits during different periods since the store opening.



The insights and conclusions presented are not intended to guide other retailers toward the Gymshark store. Conversely, it is upon any company's brand culture and strategy to decide on the best design and set-up for their Flagship stores. Nevertheless, the Gymshark Regent Street store represents the future of brick-and-mortar: Phygital, Experiential, and linked to the Community.