Multi-Brand Stores vs Pop-Up Stores: Choosing the Right Retail Strategy for Your Sports Brand

• The Importance of Retail Strategy in the Sports Industry
• Multi-Brand Stores: Strengths and Challenges
• Pop-Up Stores: A Dynamic Retail Approach
• Comparing Multi-Brand and Pop-Up Strategies for Sports Retail
• Choosing the Right Retail Strategy for Your Sports Brand
• Future Trends in Sports Retail Strategies

The sports retail industry is undergoing a seismic shift, driven by the growing global activewear market and changing consumer preferences. The activewear market is expected to exceed $450 billion by 2028.  The growth of Direct-to-Customer sales in recent years suggests a decline in the requirement for retailers.   So, the need for innovative retail strategies is critical. 

The good news is that 9% of brick-and-mortar shoppers and 19% of online shoppers prefer to shop in the manufacturer’s store. Retailers can capitalize on this trend by using the right strategy, like offering a one-stop shop for athletic gear and wellness apparel. It helps cultivate customer loyalty, directly impacting sales performance. A well-crafted retail strategy can shape consumer perceptions, foster positive brand associations, and establish a solid market presence. 

A successful retail strategy is like a catalyst, establishing meaningful connections with consumers for long-term success. It can boost a brand’s market share and sustained growth. It can also boost brand awareness, brand loyalty, and sales. 

Multi-brand stores are retail spaces offering a wide selection of products from different brands. That means such stores offer a one-stop shopping experience. Customers can browse and compare complementary or competing products under a single roof. This is similar to online shopping sites with the added advantage of touching, feeling, and trying products before buying. Imagine your potential customer is looking for a particular product, like running shoes. They can conveniently find the right product with specific features they want. They can also compare prices and discover new brands. Thus, multi-brand stores cater to modern consumers’ desire for choices with convenience. This lets brands tap into a wider audience, increasing brand awareness, sales, and revenue. 
Retailers adopting the multi-brand store strategy are on the road to success. For instance, INTERSPORT Group has been vastly successful as a multi-brand store. Its sales increased by 13.4% in 2023. Meanwhile, JD Sports Fashion’s revenue plummeted by 4.12% in 2024. Multi-brand stores are also successful for manufacturers like Nike, which offers multiple product lines under the same umbrella brand. Take Nike’s House of Innovation, for example. This concept store allows people to access different product lines, experiment, and customize their purchases.

Another example that comes to mind is the impactful multi-brand flagship store by Under Armour, Brand House City. It is a one-stop shop for all the products and services by Under Armour.  

However, there are some challenges and drawbacks to setting up a multi-brand store. Brands have little control over how their products are positioned. This can make it difficult to stand out among competitors and major players in the industry. For instance, JD Sports is a successful name in sports retail, and brands get exposure to diverse consumers. However, the competition is stiff, and maintaining the brand image can be difficult as the brands cannot control how their products are marketed or displayed.

Pop-up stores are temporary retail spaces that brands use to showcase their products. These are a dynamic way to grab people’s attention during an event, festival, new product, launch, etc. Pop-up stores give sports brands the opportunity to test products and concepts, generate hype, or showcase how people can use their products. 

Brands can evaluate new markets and engage with new demographics within a limited period. They don't require long-term commitment or significant financial risks, making them a flexible option. Pop-up stores are adaptable and let brands engage customers and try out new trends. They offer a unique, immersive experience to shoppers while gathering real-time feedback and insights. Interestingly, the limited-time nature of pop-ups creates a sense of urgency and exclusivity among the audience, grabbing attention and boosting sales.  

One of the best examples of pop-up stores is Adidas’ Terrex line launch. It integrated interactive experiences and showcased exclusive products in an engaging environment. Its impact went beyond the physical store and ended up as a PR opportunity, generating massive online engagement.

ASICS’ pop-up event at Paris Fashion Week 2024 showcased its upcoming collaborations with four brands: Cecilie Bahnsen, Kengo Kuma, Up There, and Doublet. It gave people a chance to see and purchase yet-to-be-released products.

People love pop-ups for the unique experiences, seasonal products, localized options, and discounts. They enjoy personalized shopping and enjoy the chance to engage with new brands. No wonder 80% of global retail brands have achieved great success with pop-ups! 58% of them want to use them again. However, careful planning and investment are required to make the best of pop-ups. Let’s not forget that their temporary nature over a limited time can make it challenging to establish long-term brand loyalty, make a substantial impact, or achieve sales targets.

Multi-brand and pop-up stores have unique benefits, challenges, and considerations for sports brands. Understanding the key distinctions helps with informed decision-making and ensures alignment with brand goals. The first thing to consider is the target audience. Multi-brand sports retail stores, with a wide variety of offerings, cast a wider net and attract a diverse audience. Pop-up stores, when positioned strategically and designed with precision, target specific demographics or niche interests. Investments are to be considered, as well. Multi-brand stores entail higher overhead costs. Consider rent, staffing, and inventory management for multiple brands. Pop-ups are temporary and can be more cost-effective. They allow brands to experiment without long-term financial commitments.

However, multi-brand stores create a lasting impression and top-of-mind awareness. They foster brand loyalty. Pop-ups manage to create a quick buzz and are notably more effective as a seasonal marketing strategy during sporting events, exclusive product launches, etc. In multi-brand stores, brand presentation can get diluted amidst the competition. Brands have little control over how their products are featured among similar brands. However, they also give brands a chance to get featured among big players and reach new customers. 

Pop-up stores give brands complete control over their presentation for a unique and immersive experience. This allows for tailored marketing strategies and a focused narrative. They are inherently more adaptable and allow brands to experiment.

So, how does a sports brand decide between pop-up or multi-brand stores? Choosing the optimal retail strategy requires careful consideration of various factors, such as their target market, product offerings, and overall business goals. For instance, if a brand targets a niche audience or launches a limited-edition product, pop-up stores are ideal for creating exclusivity and hype. On the other hand, an established brand with a broader product range might benefit from the wider reach of multi-brand stores and get loyal customers. 

Ultimately, the chosen strategy should align with the brand's overall objectives, whether building brand awareness, driving sales, or enhancing customer experience. The chosen strategy should seamlessly align with the brand's core values and long-term vision. After all, there's no one-size-fits-all solution. A hybrid approach, blending elements of both multi-brand and pop-up stores, might be a balanced and dynamic approach. 

Brands can leverage the strengths of both, establishing consistency and expanding reach through multi-brand stores. They can simultaneously generate excitement, targeted engagement, and successful experiments through pop-ups. 

The sports retail market is constantly evolving. It is shaped by technological advancements and shifting consumer preferences. There’s also a growing emphasis on sustainability. Brands are trying to stay ahead by leveraging these trends and changing their strategies accordingly. The integration of new technology, such as augmented reality and AI, can create more immersive and interactive experiences. VR can revolutionize in-store shopping by enabling customers to visualize products in their own environment or on themselves. AI can offer personalized recommendations. With the help of advanced technology like AI-powered wearables and other devices, brands will be able to understand and adapt to consumer behaviors and preferences. Accordingly, they can develop effective retail strategies.

Consumers today value convenience, personalization, and uniqueness. Brands with the ability to offer seamless omnichannel experiences, tailored recommendations, and engaging shopping will survive. The future will likely see a rise in experiential retail. Stores will go beyond just products and offer fitness classes, workshops, etc., focusing on customers.

Brands must also remember the expanding population of eco-conscious consumers. Such buyers want brands that prioritize sustainable practices. Brands like Patagonia and Adidas have already earned the respect and loyalty of their customers for using recycled plastic-based fabric in their products. From using recycled materials to implementing eco-friendly packaging, sports brands must make an effort to reduce their carbon footprint. Sustainability must be incorporated into retail strategies to meet this growing demand.