Dick's announces first-ever surprising deal with Lululemon rival

Dick's Sporting Goods has established itself as the largest sporting goods retailer in the U.S., thanks to its large brand assortment and extensive product offerings.

Now, as consumer spending slows amid economic uncertainty and Lululemon faces headwinds in the U.S. market, Dick's is taking advantage by making a first-of-its-kind major move to strengthen its dominance in the sportswear retail space.

The company is partnering with Gymshark, a British fitness apparel brand, to become its first-ever wholesale partner. As mentioned on the company's website, Gymshark merchandise will be available at 12 Dick's stores across 10 states beginning October 24.

To set Gymshark apart from its many other renowned brands, Dick's (DKS) will create dedicated, themed retail spaces showcasing the activewear brand's visual identity, featuring its imagery and athletic mannequins made from weight plates.

Dick's locations offering Gymshark merchandise:

• Westgate: 6385 N 99th Avenue, Glendale, Arizona
• Dadeland Mall: 7239 N Kendall Drive, Miami, Florida
• International Plaza: 2223 N Westshore Boulevard, Tampa, Florida
• Town Center Commons: 667 Ernest W Barrett Parkway NW Ste 400, Kennesaw, Georgia
• Prudential Center: 760 Boylston Street, Boston, Massachusetts
• Ridgedale Center: 12437 Wayzata Boulevard, Minnetonka, Minnesota
• Newport Centre: 50 Mall Drive W, Jersey City, New Jersey
• Polaris Fashion Place: 1510 Polaris Parkway, Columbus, Ohio
• Ross Park Mall: 1008 Ross Park Mall Dr., Pittsburg, Pennsylvania
• West Town Mall: 7600 Kingston Pike Suite 400, Knoxville, Tennesse
• Baybrook Mall Power Center Extension: 18650 Gulf Freeway, Friendswood, Texas
• Dallas Parkway: 13900 Dallas Parkway, Dallas, Texas

Gymshark's expansion into physical retail stores

Gymshark is a UK-based activewear brand founded in 2012 by Ben Francis, a former pizza deliveryman who is now a self-made billionaire.

The brand rose to fame through its innovative influencer marketing strategy. Francis would send his apparel to bodybuilders and weightlifters he admired, who would, in turn, share and promote the brand to their massive communities of followers.

Today, Gymshark has over 18 million social media followers and sells in more than 230 countries through 14 online stores, according to its website. Thanks to its loyal global fan base, the brand has been actively transitioning from an online-only model to physical retail stores.

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In October, Gymshark opened its first permanent U.S. store at the Roosevelt Field Shopping Center in Garden City, New York, and will soon open its flagship location in Manhattan's NoHo district.

These strategies have kept Gymshark profitable and competitive among its rivals. The activewear brand prioritizes customer feedback, focusing on products that align with evolving consumer preferences.

Over the past few years, it has optimized its inventory, strengthened its core product lines, and rolled out limited-edition seasonal and new drops to keep its offerings fresh.

For the year ended July 31, 2024, Gymshark's revenue increased around 13.6% year over year to nearly £459 million ($624.3 million), while orders rose more than 20% and units sold climbed over 19%.

"The group has decided to extend its channel presence thoughtfully through additional physical stores and a select use of brand accretive wholesale partnerships," said Gymshark in its strategic report.

Lululemon adjusts its strategy amid intensifying competition

Despite Gymshark being relatively new in the activewear industry, it has already become a noteworthy competitor to established rivals like Lululemon.

While Lululemon's total revenue increased 7% year-over-year to $2.5 billion in the second quarter of fiscal 2025, it fell short of expectations. In its U.S. market, comparable sales decreased 4%, and net revenues remained flat.

Lululemon cited growing competition, shifting consumer spending and preferences, and higher production costs due to new tariffs as reasons for its slowdown.

To win back customers, Lululemon (LULU) is now rethinking its product strategy, aiming for a better balance between core offerings and new styles, a move similar to Gymshark's customer-centered approach.

CEO Calvin McDonald acknowledged that slow responses to consumer trends have weakened the brand's once-dominant position.

"We have recently conducted a deeper product diagnostic, the results of which I will share with you today. I now believe we have let our product life cycles run too long within many of our core categories, particularly in lounge and social. We’ve become too predictable within our casual offerings and missed opportunities to create new trends," said McDonald in an earnings call.

As Dick's deepens its brand partnerships and Gymshark accelerates its U.S. expansion, Lululemon faces growing pressure to innovate and reconnect with consumers.

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