Fitness Becomes Fashion

Athleisure has emerged as a key driver of incremental demand for retail landlords in prime locations. Our deep dive conducted, after speaking with a number of leading participants in the industry, reveals the following:

Key Points: 

• The Australian fitness and athletic clothing store market was valued at $4.2bn in 2024, with approximately 1,943 retailers operating in the national market, including both international and domestic brands.
• Growing demand for activewear as streetwear has driven strong industry revenue growth, with the market reporting a CAGR of 3.0% between 2019-24. The industry is expected to continue experiencing growth, with revenue forecasted to increase by 3.4% (CAGR) between 2025-30.
• The growing affluence of Australian consumers has been a significant driver of retail spending, particularly for premium athleisure, with the country recording one of the highest net inflows of High-Net-Worth Individual (HNWI) migrants globally (2,500, as at 2024).
• Established sportswear retailers, namely, Accent, Super Retail, JD Sports, Lululemon Australia and Lorna Jane have performed strongly over the last few years, recording revenue growth of 77%, 27%, 160%, 152% and 12%, since 2019.
• As the popularity of athleisure continues to rise, the number of standalone athleisure stores is also expected to grow. In addition, we expect brands with an existing physical presence to continue to expand their floorspace to refresh fit outs and incorporate more experiential retail.