Lids’s new retail play: Personalized sports fandom

To make the most of its stores and keep customers coming back to shop in person, baseball hat retailer Lids announced Wednesday that 20 locations will have a newly redesigned store concept this month built for customization and personalization.

Physical retail’s not dead, but to breathe new life into it—not to mention make more money from the remaining square footage—brands are rolling out more personalized in-store customer experiences. Concierge-style customer service along with customizable products have become the name of the game to counter the many headwinds physical retail has faced in recent years, including the rise of online and social media shopping, the pandemic, and inflation. Personalized experiences create upsell opportunities, strengthen customer loyalty, and, most important, draw people into those dusty physical locations.

Lids does “north of 25 million transactions” in its stores, according to Glenn Schiffman, CFO of Fanatics, the apparel, merchandise, and collectibles company that owns a majority of Lids. Lids makes up a portion of the Fanatics commerce division along with Fanatics merchandise and collaborations with other brands, sports leagues, and celebrities.

Its commerce division, which includes retail, is responsible for about three-fourths of its 2024 revenue, according to data from Sportico, a sports industry trade outlet. Parent company Fanatics grew 15% in 2024.

At Lids, the new store concept has a build-a-hat kiosk where customers can personalize headwear digitally; select locations will also have curving stations where customers can curve the brim to their liking. Known for its officially licensed and branded hats and apparel, Lids says the new stores have an increased emphasis on local teams and exclusive products. Exclusive product drops have become a common model for brands and artists to generate hype—and sales.

“Customization has always been at the heart of our brand, and this new store design takes it to the next level,” Lids President Bob Durda said in a statement. “This rollout represents our commitment to a dynamic, customer-centric experience where every visit feels personal, engaging, and tailored to each individual.”

Customization at Lids gives shoppers a product that’s distinctively theirs for a premium. The store offers hat curving for $10, stitching for $12, and patches for $15. Jersey personalization, which is available in some stores, starts at $50. Sure, you could get a cheap baseball hat from Amazon, or a custom jersey through the MLB’s pricey Fanatics-run online custom shop delivered in a few days. Lids seeks to counter these offerings with a premium design built to your liking with help from a professional—and you can walk out with it the same day.

Personalization also increases the likelihood of return customers. A 71% majority of consumers expect personalized interactions from companies, according to a 2021 report from consulting firm McKinsey & Co., which also states that 78% of customers are more likely to make a repeat purchase from companies that personalize their offerings.

The trend toward personalized, customized retail experiences can be seen across categories, from self-service kiosks at select Pizza Hut locations to DIY AI Jibbitz for Crocs. By giving customers the opportunity to build their own custom caps, Lids is giving them a store experience worth visiting.

View the full article