Business Insights | ‘Doom spending’: A key driver in surging athleisure sales

It’s a term that’s been taking hold of today’s global retail landscape: ‘Doom spending’. 

This growing economic trend is an act commonly practiced amongst young people and involves giving up on saving money to obtain short and long-term gratification through shopping. The reason? To cope with the current stresses of inflation and the economy. 

At a UTS Climate Action Week panel, Catherine King, the Chief Strategy Officer at Leo Burnett, explained that 29% of Australians are now ‘doom spending’ to inject a sense of meaning, pleasure and distraction into a world that feels out of control to them.  

This trend offers a crucial insight: it's not simply what consumers are buying, but how their spending habits are creating pockets of resilience and growth within the retail sector – specifically in athleisure apparel. 

One’s doom, another’s boom 

Doom spenders are buying athleisure as part of this controversial coping mechanism. Gen Z analysts have already concluded that the spending habits of this group include indulging in specific categories such as dining out, beauty products, jewellery, experiential and travel offerings, and of course, apparel.      

It’s a key point reflected in CBRE’s latest athleisure report which found that the main demographic driving the surge in athleisure’s retail sales is coming from Gen Z and millennials. 

“These young people have been key drivers of the activewear market, heavily influenced by fashion trends and frequently updating their wardrobes to align with trends,” explains the report’s author and CBRE’s Senior Research Analyst, Charlotte Fordyce. 

“Additionally, this age group is more health-conscious, prioritising fitness and wellness. Their high use of social media platforms has also further influenced the popularity of activewear.”  

When it comes to numbers, the athleisure trend is underpinning industry growth. IBISWorld indicates that the Australian fitness and athletic clothing store market was valued at $4.2 billion in 2024. The sports apparel category is expected to account for the largest share of the activewear retail market in 2025, generating $2.3 billion (55%) of total revenue.   

On a macro scale, the growing demand for activewear as streetwear has driven strong industry revenue growth, with the market reporting a revenue growth of 3.0% (CAGR) between 2019 to 2024. CBRE analysts have forecasted this revenue to grow by an extra 3.4% between 2025 to 2030. 

This targeted spending fundamentally provides clarity for investors seeking resilient retail sub-sectors. While for occupiers, it highlights priority product categories for store expansion or merchandising. 

These robust growth forecasts indicate sustained demand for retail space, positioning athleisure as a high-performing segment for portfolio diversification and new development considerations. For investors, this translates to potential for stable rental growth and attractive yields in well-located assets. 

Driving a physical retail renaissance 

With growing revenue numbers comes the growing demand for a physical retail presence. CBRE’s research reveals that many athleisure brands which started as online-only retailers have since expanded their operations into physical retail.  

“By establishing physical stores, these brands can build stronger connections with consumers and offer a more immersive shopping experience,” says Charlotte.  

One major athleisure brand currently leaning into the experiential retail concept - and seeing the benefits - is Lorna Jane.  

“Over the past decade, athleisure has evolved from performance wear into a powerful expression of identity, confidence, and connection,” says Anna Strzelczykowski, Lorna Jane’s Head of Property & Retail Development.  

“As a brand, we’ve adapted alongside our community by introducing innovations like our ‘Shop The Look concept’, where retail spaces feel like curated style guides, and partnering with initiatives like parkrun to deepen our commitment to movement and community. Today, athleisure isn’t just about what women wear – it's about how it makes them feel. Our growth reflects that shift.”    

Nimble Activewear’s co-founder and co-CEO, Vera Yan, is even more explicit about the importance of physical retail spaces for their brand. 

“At Nimble, we are seeing our strongest year-on-year growth over the last financial year, driven by successful customer acquisition in digital channels. This success is helping to give us clarity on where our customers are and the logical next location(s) for our physical retail presence. 

“As we continue to scale digitally, we see our retail presence having increasing importance in allowing us to build credibility and connection with our customers.” 

This balance of online presence, genuine community, and physical retail is certainly making its impact felt in the real estate world.   

Lorna Jane’s Australian store count currently sits at 99, with 29 outlets for Queensland, 32 for New South Wales, 16 for Victoria, 11 for Western Australia, 7 for South Australia, 2 for the ACT, and 1 each for Tasmania and the Northern Territory.  

Across the pond in New Zealand, it operates 10 physical stores in North Island and 1 in South Island.  

Strategic imperatives for CRE 

While e-commerce remains vital, the athleisure sector is a prime example of a 'clicks-to-bricks' phenomenon, demonstrating the enduring value of physical retail.  

CBRE’s research highlights a strategic pivot by many online-first athleisure brands towards brick-and-mortar locations. This isn't just about stronger connections; it's a calculated move to optimise omnichannel strategies, reduce customer acquisition costs (CAC), enhance brand loyalty, and provide an immersive brand experience that digital channels alone cannot replicate. 

For occupiers: Establishing physical stores allows athleisure brands to control the customer journey, facilitate immediate gratification, offer seamless returns, and host community events. This directly impacts site selection criteria, which includes seeking locations with high foot traffic, strong demographics aligned with their target market, and often proximity to fitness centres, wellness hubs, or complementary lifestyle retailers. The demand is not just for any space, but for experiential retail environments that blend shopping with brand immersion. 

For investors: This trend translates into robust demand for prime retail tenancies. Assets that can accommodate flexible layouts, advanced digital integration, and provide a strong sense of place are becoming increasingly valuable. Understanding a brand's physical store strategy is key to tenant mix optimisation and long-term asset performance. 

The future looks fit 

While the concept of ‘doom spending’ continues to be a contentious way of life, the popularity of athleisure is set to experience a brighter future.  

For commercial real estate, this could mean: 

• Increased competition for premium sites where investors can anticipate continued strong demand for well-located retail assets with high visibility and foot traffic. 
• Asset repositioning opportunities where older retail assets may find new life by attracting athleisure tenants and creating wellness-focused precincts. 
• Yield stability and growth where strong tenant covenants from expanding athleisure brands can contribute to stable yields and potential capital appreciation for investors. 
• Strategic tenant mix where owners of retail centres should actively curate a tenant mix that includes leading athleisure brands, leveraging their ability to draw in desirable demographics and complement other lifestyle offerings. 

With a growing preference for athleisure wear, the fitness and clothing industry is forecast to perform strongly over the coming years, driven by remote work, lifestyle shifts, social media, and generational trends.  

“Additionally, the growing affluence of Australians and population will underpin this growth,” adds Charlotte.  

“The positive trajectory of the Australian activewear industry will increasingly drive demand for brands to secure prime tenancies.”