In this opinion piece, Christina Kässhöfer offers insights into how innovation and customer experience reshape the retail landscape. Discover how adapting to these changes can set the stage for future success.
Trade has always been about trading goods. However, in today’s world of overwhelming choices and a challenging economic climate, trade has shifted from being a business of pure transaction to one of innovation and experience. No one needs anything anymore.
Retail is about a mindset shift
If your perspective on the sports landscape hasn’t shifted since the recent economic shake-up, now is your last chance to change. Your last!
Your competitors for consumer spending are not some abstraction like “the internet” or “discounters.” Today isn’t about discounters versus brands, DTC versus wholesale, or even performance wear versus athleisure.
It’s about a single battle to create desire and excitement, rather than fulfillment.
Once seen as the final stop in the supply chain, customers now influence products, interfaces and expectations from the very beginning. Technology fuels this shift, enabling hyper-personalization, real-time feedback loops and tailored interactions.
To thrive, discard old beliefs, start fresh and think boldly – not necessarily in terms of investment, but through inventiveness, local bonding and distinctiveness.
So who is turning mundane interactions into memorable experiences, why does pricing still matter, and who could become your next target?
A healthy life is becoming a universal goal
The good news: The more consumers worry and feel less in control of their lives, the more the desire for long, healthy living becomes a universal goal. The question is, are you benefiting from this trend or selling “only” sports products?
The hard truth: Earning consumer trust and euros is tougher than ever. Price sensitivity has become acute, even in the sporting goods market. Consumers are now armed with knowledge and scrutinizing their purchases. Short seasons and high stock levels further complicate the equation.
Innovation by “retail brands”
The line between wholesale and endemic brands is increasingly blurred. Retailers are investing heavily in innovation and their private labels.
Once considered a low-price retailer, Decathlon has repositioned itself to become “the sports brand of choice.” You read that right: brand, not retailer! The company is investing €100 million in its German store portfolio alone and, with its more than 95 patents, has made a major decision to tighten its brand portfolio to strengthen its core Decathlon brand.
Similarly, drug store chain DM’s ever-evolving private-label offerings account now for nearly 50 percent of its unit sales, developed by data on trends and consumer preferences.
Consumers aren’t simply trading down – they’re making thoughtful, preference-driven choices.
Customer excellence
Exceptional service anticipates what customers expect: listen, engage and respond authentically, on social media, in D2C channels and, of course, in store. Analyzing consumer behavior and using technology to expedite shopping will be key.
Decathlon’s customer-centric approach isn’t ceding the field of customer service to sports specialty stores anymore. In addition to making greater investments in staff training and instituting a fair 30-day return policy (recently also introduced by Zalando), the company is adding ski and snowboard service, DIY workshops and ski-pass sales.
New Balance is “continuing to invest in ways that allow [it] to get close to consumers and detect shifts in patterns and buying and in how consumers are interacting with the brand.”
Multi-sensory experiences in stores
Opening pop-up gyms, like Hermès; fostering a sense of belonging with community areas, like US organic retailer Erewhon; installing in-store infrared cabins to enhance customer well-being, like beauty retailer Rituals; offering virtual try-ons – such efforts create curiosity and excitement, blending shopping with entertainment.
Knees Up Running Space, as featured at Pitti Uomo 2025, is a multifunctional space born in London at the intersection of fashion, running, and events. Both a physical and digital destination, it showcases a café, bar and shop with a curated selection of young and exciting brands, while also providing a place for meet-ups of the Your Friendly Runners run club, classes, talks, and fashion launches.
Level-inclusiveness and nearness for retailers
Winning customers can also mean lowering barriers. Accessibility and inclusiveness for new sports and all levels of athletes open new customer groups and inspire participation. This can range from entry-level training programs and sports gear rental (before purchase) to free-of-charge practice content on WhatsApp and sports activities.
Decathlon’s move into inner cities with region-specific assortments and small, localized store formats says, “I want to play an active part in people’s lives.” We’ll see if it works out. Another way to strengthen the consumer-company bond is to engage in local community work, as DM has been doing for a long time.
Sports market opportunities
- Sportswear rules: Sportswear is growing (and outpacing fashion), blending high-performance fabrics, functional looks and leisure appeal. This will provide opportunities for new, exciting departments and products.
- Active everyday identity: Sports is a lifestyle, not a hobby. Brands like Alo Yoga have moved away from selling just yoga and fitness wear to catering to a casual, wear-all-day attitude, as younger generations aim to transport their healthy way of living on their outer skin.
- Women’s Sports: From trail-running to mountain biking to watersports, women are ready to play seriously and invest when their personal needs are met. This requires a shift in corporate mindset.
- Community sells: D2C fitness brands like Teveo, with its scrunch pants, and Oace connect first, build a community and then sell, fueled by a deep understanding of their customers’ mindset.
- Sports and travel: Global sports travel is expected to grow by 18 percent. Whether it’s hiking, diving, stargazing, outdoor camping or finding new surf spots, travel combines sports, adventure and mindfulness.
- Fan commerce: Think Ronaldo and Taylor Swift. A renewed sense of belonging and admiration for talents and their lifestyles blends e-commerce with fan engagement. Smart devices and retail media provide a direct path to consumers.
- Everything weather: With changing climate and weather, outdoor protection against the cold, sun and heat will become relevant for people who participate in outdoor sports. They will need fabric innovation, smart technology, beauty products, glasses and more.
- Well-being is more than wellness: Longevity, healing, detoxication, prevention and social connection. New monetarization models range from ice plunges to IV injections, at-home kits, guided (paid) social gatherings. Selling products is just one part of the transaction.
“What people are wearing, whether it’s running, or whether they’re out casually, it’s becoming more and more of an opportunity for people to wear [that apparel] on many different occasions. So, we feel pretty good about that, and our position within it continues to be strong.”
Joe Preston, CEO, New Balance
Time Magazine, Nov. 3, 2024
Learn more about how strategic brand partnerships have fueled New Balance’s success
Strategic implications for channel-inclusive retailers
- Delight & retain: “The future of customer experience is holistic, predictive and proactive,” as McKinsey has put it—nothing to add.
- Analyze & personalize: Take informed decisions and strengthen interaction.
- Entertain & sell: Find a way to entertain your customers, at local sports events, in-store and on social channels and link it with personalized curated offers.
- Grow & sustain: In terms of profit, new customer groups and sustainable business models.
- Become & relate: Don’t think like your customer; become your customer and redefine your corporate culture. Be brave, multisensory, and female.
