The sports apparel retail sector is crowded with mall chain stores competing for fans’ business.
But mall retailers also have to contend with online sports merchandise sales from e-commerce giants like Fanatics.com, as well as the long list of mall tenants.
“Shopping for hats and caps online is becoming increasingly popular, leading to a drop in foot traffic and sales for traditional brick-and-mortar stores,” data firm IBISWorld reported in its Hat and Cap Stores analysis. “This shift diverts revenue away from physical locations, creating instability in their financial performance.”
Demand in the hat and cap store industry has stabilized since the Covid-19 pandemic, as revenue has risen by a 5.1% CAGR over the last five years to $5.4 billion in 2025, though income is expected to drop by 2.4%, according to data by IBISWorld.
The industry includes national retailers such as sister chains Fanatics, Lids, and Fanzz, siblings JD Sports and Finish Line, and Dick’s Sporting Goods, Foot Locker, and Champs. Other major players include Pro Image Sports and Rally House.
Along with national retailers, there are plenty of regional retailers, such as California-based chain Sports Fever, which has about 13 stores throughout the state, according to its website.
HatStop files for Chapter 11 bankruptcy
Certain regional retailers are having hard times and occasionally need to file for bankruptcy, such as Tacoma, Wash.-based retail chain, HatStop, which filed for Chapter 11 protection to reorganize on Jan. 15.
The sports team merchandise retailer currently operates stores at Commons Mall in Federal Way, Wash., and Westfield Southcenter Mall in Tukwila, Wash.
HatStop, a family-owned company that opened for business in 2012, operated as many as five locations across Washington state, but has closed three of those stores.
The sports gear retailer faces fierce competition from sports merchandise retailers, such as Lids, which operates a location at the Westfield Southcenter Mall.
Sports hats and apparel retailer Lids closed a Sacramento-area location.
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Lids closes location in a dying mall
Lids, which has been reinventing itself since last year, unexpectedly announced a rare store closing, as it shut down its location at the once popular Sunrise Mall in Citrus Heights, Calif., near Sacramento.
Lids, which operates about 2,000 stores in North America, Europe, and Australia, closed its Sunrise Mall location on Jan. 18 in a corporate decision due to lack of profitability, a store employee confirmed, according to Citrus Heights Sentinel.
Store inventory was transferred to other nearby store locations. Five other Lids stores operate in the Sacramento area.
More closings:
- Casual Mexican restaurant chain closes more locations
- 79-year-old national trucking company closes down, no bankruptcy
- 65-year-old Home Depot rival shutters business permanently
Another popular retailer, Torrid, closed its store in the Sunrise Mall the day after Lids, on Jan. 19.
Sunrise Mall, which once featured about 101 retail tenants in the 1970s, had fewer than two dozen stores in late 2025, the Sacramento Business Journal reported. The dying mall once had major anchors, such as Macy’s and Sears, but now has only one anchor remaining: JCPenney.
Lids exits U.K. market in 2024
Lids has not announced any other store closings. The company has not closed a significant number of stores since it exited the U.K. market in December 2024, with the closing of over 20 stores across the Atlantic, according to RetailWeek.
Following its exit from the U.K., Lids announced the launch of its reinvented retail store concept, “designed to elevate the shopping experience with a strong focus on personalization.”
Retailer reinvents itself
The new format, launched in April 2025, includes a modernized layout, an enhanced ‘Custom Zone,’ and an expanded selection of localized and exclusive products with increased attention on fashion headwear.
“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. “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,” Durda said.
Sports Fever locations:
- Redding Mt. Shasta Mall, Redding, Calif.
- Valley Fair, Santa Clara, Calif.
- Mission Valley, San Diego
- Arden Fair Mall, Sacramento
- Stoneridge Mall, Pleasanton, Calif.
- Escondido Mall, Escondido, Calif.
- Plaza Bonita Mall, National City, Calif.
- Roseville Galleria Mall, Roseville, Calif.
- Santa Ana Mainplace Mall, Santa Ana, Calif.
- Merced Mall, Merced, Calif.
- Valley Plaza Mall, Bakersfield, Calif.
- Sun Valley Mall, Concord, Calif.
- Streets of Brentwood, Brentwood, Calif.
Related: Major department store chain closes warehouses, 1,000 lose jobs
