Why hat retailer Lids is honing in on customization
The baseball cap and jersey retailer Lids is heading into the new year with a larger focus on customization.
Lids, which has more than 1,000 locations throughout North America and Europe, has offered in-store hat embroidery services for more than 20 years. In 2025, though, Lids says it will create a new section in its stores with stations for embroidery, patches and hat curving. The offering, which Lids calls the Custom Zone, will come to 20 stores in April and expand to “a few more hundred” by the end of 2025, Lids president Bob Durda told Modern Retail. What’s more, Lids is also investing in new technology like design-your-own-hat digital kiosks in select stores to “modernize the process and make it more frictionless,” Durda said.
“Everybody knows that we have plenty of hats, jerseys and other apparel items, but this [Custom Zone] allows us to take it to the next level and be a little more disruptive and unique in the market,” Durda said. “We’re excited to do something different.”
As it stands now, customers can come into a Lids store or go online to order a custom hat from brands such as ’47 and New Era Cap. Shoppers first pick their hat’s silhouette, size and color. Then, they add text and designs. They can pick from thousands of existing images — including licensed sports logos, state flags and even “Peanuts” characters — or use their own images, provided they are the right size and are approved.
These customization services are available to individuals as well as businesses looking to sell their own personalized merch. Prices vary depending on what model of hat customers choose, but premium upgrades like raised embroidery or specialty thread cost an additional $6 each, according to the FAQ page on Lids’ website. Shoppers can also bulk order units, which come with their own discounts.
A private company founded in 1995, Lids does not publicly report revenue. It was acquired by Ames Watson for $100 million in 2019. Ames Watson made more than $2 billion in revenue in 2024. Ames Watson also raised $250 million in funding in 2022.
At Lids, demand for customized hats was “aggressive” coming out of Covid but has since come down a bit, Durda told Modern Retail. “It’s leveled off right now,” he said. “I think it’s more based on just the state of the environment right now, the macro environment. But we’re putting a lot of initiatives behind us while we’re trying to enhance the experience.”
To build even more hype, Lids is advertising its customization capabilities in the lead-up to the holidays. While Lids’s holiday messaging typically focuses on promotions, Lids wanted to “tap into something different” and showcase its customization services this year, Durda explained. In the fall, Lids debuted a campaign called “It’s Personal” that features music producer Chase B, NBA trainer Chris Brickley and model Emily Tanner. Lids’ marketing team will have a new campaign around the Custom Zone in the spring.
While Lids is leaning more into customization, it’s not the only one doing so. Customizable products — which often come with higher price points — are becoming go-tos for retail players across all sectors because they tend to improve margins and increase customer loyalty.
Today, companies from M&M to Nike offer some type of product customization. In November, the CEO of drinkware brand Yeti said that customization was a “real positive” as the company looked to scale capacity. “We see opportunity to continue driving this demand through e-commerce and corporate sales,” Matthew Reintjes, Yeti’s CEO, said.
Christy Parrish, senior director of client partnerships at the personalized messaging platform Cordial, said she’s seen a “significant uptick” in customizable products as shoppers look for unique gifts. “Customization creates an emotional connection, so brands are smart to leverage this as they fight for a share of the wallet,” she told Modern Retail.