Will the New Lids Retail Concept Capture the Imagination of Sports Fans, Particularly Gen Zers?

Fanatics-owned Lids, perhaps the most well-known clothing and accessories retailer servicing sports fans across the globe, is in the process of launching a new retail concept — one focusing heavily on the notion of product personalization.

As Forbes senior contributor Sharon Edelson detailed, Lids is in the process of revamping its retail presence in a variety of ways, from modernization of its floor plan and overall layout to an enhanced Custom Zone. That’s in addition to beefing up its product lineup, zeroing in on localized offerings and exclusive merchandise.

“We’ve had the same look and feel for several years now,” said Bob Durda, president of Lids, per Forbes.

“We felt it was time to upgrade so we’ve been working on this since August, thinking about the best way to roll this out in various markets. We put together a sample set of stores across the U.S. that kind of hit our tourists markets, our suburban markets, and our fashion markets. We just wanted a strong sample set and we feel like we achieved that,” he added.

The retooled Custom Zone means deeper customization options for Lids shoppers, and the introduction of Build-a-Cap kiosks means that consumers will have real-time access to a digital display allowing them to personalize their ballcaps and other headwear on the spot. A patch bar and a curve station are also part of the “personalize everything” brand experience being sought by the retailer, with Lids having invested in hardware that sets them apart from competitors.

“[Customers] like to curve their hat in a certain way and a lot of retailers use a steamer to set the curve,” Durda said. “We’ve invested in a state of the art curving machine that’s automated. You pick the level of the curve and it will automatically curve the hat. It takes about six to eight minutes and you have the desired curve that you requested. We’re the only retailer that offers that.”

Will Gen Z Shoppers Gravitate Toward Lids in Response to New Personalization Options?

It’s no secret that Lids has been successful with its established and growing customer base. As a recent Sportico report outlined, Fanatics saw its revenue grow by an impressive 15% (to $8.1 billion) in 2024, with Fanatics Commerce — the division representing its core apparel and merchandise sales — driving 77% of that revenue.

Fanatics CFO Glenn Schiffman provided some fundamental figures to Sportico during a January interview.

“We do north of 40 million transactions [annually] in the e-commerce business, direct-to-consumer, and we do north of 25 million transactions in our Lids stores,” Schiffman said.

Further growth may be possible as the company embraces a key element of modern retail that appeals to younger shoppers: accessible customization.

As Vogue Business pointed out, members of Gen Z are seeking “chaotic customization.” Vogue reported last November, “Trend forecasters predict that over-the-top and individualistic embellishments and personalization will be big for young consumers next year, as they reject the relentless churn of trends.”

And NielsenIQ appeared to reinforce this line of thinking via an extensive July 2024 report titled “How Gen Z Consumer Behavior is Reshaping Retail.” In the report, one of the characteristics of Gen Zers was a preference for personalization.

“With a stronger sense of self, [Gen Z] has a higher demand for tailored experiences and products,” NIQ stated.

The report also noted, “This generation expects brands to offer tailored experiences that reflect their individual tastes and preferences. They are drawn to retailers who use data-driven insights to personalize marketing messages, product recommendations, and shopping experiences.”

Durda indicated that doubling down on customization was simply a logical extension of the existing Lids strategy, one that may happily coincide with the emerging spending power of younger Americans.

“Customization has always been at the heart of our brand, and this new store design takes it to the next level,” said Durda.

“We’re offering more ways for customers to make their gear uniquely theirs — whether it’s stitching, patching, or curving. This rollout represents our commitment to a dynamic, customer-centric experience where every visit feels personal, engaging, and tailored to each individual,” he added.

Fanatics has launched the new retail concept in 20 stores — 10 Lids locations and 10 Lids Locker Room locations — with plans to roll out between 50 and 100 more revamps over the course of the next 12 months.

“We may accelerate that if [the rollout] exceeds expectations,” Durda concluded.