Engaging in outdoor-oriented activities continues to be a popular theme with today’s wellness-obsessed populace, even during the winter months. Consumers of winter apparel have become more mindful with their spending and want to invest in higher quality items that will not only remain durable over the years, but will also better protect them from harsh cold elements. Many of these winter-themed apparel retailers are expanding their merchandise offerings and are consequently expanding into new regions of the U.S. in order to cater to these newfound consumers. The leaders in this category that are gaining buzz include The North Face, Canada Goose and Stio.
The North Face anticipates opening 10 to 15 new stores per year over the next five years. New stores will open immediately in the Midwest; look for 2023 to see new units in Indianapolis, Minnetonka, Minn., and Wauwatosa, Wisc. Beyond 2023, anticipate underpenetrated states with a rising affluent-based population in the South and the West to see growth, such as Nevada, Texas, Arizona, Tennessee, Georgia and Florida.
The North Face ideally seeks space in the 6,000- to 8,000-s.f. range, at premium shopping centers and outlet centers alike in both urban and upscale suburban areas. Preferred co-tenants are apparel brands popular with higher income consumers in the Gen Z to Gen X-age range, such as Psycho Bunny and Aritzia. Look for its upcoming stores to utilize a portion of the space for special event activities that engage the surrounding community.
As a brand under the VF Corporation (VFC), The North Face reported that its sales revenue in Q2 was up 8%, which is much more favorable than another brand under the VFC umbrella, Vans, which saw sales decline 13% in the same time period. Consequently, VFC is predicting revenues for The North Face to grow at least 12% in the coming quarter, aided by its relatively new “everyday wear” clothing that will allow the brand to be available in new markets beyond the cooler climates and the winter season. The brand is expanding its apparel and footwear to incorporate outdoor training, mountain lifestyle and urban street wear lifestyle items. The North Face attracts both devoted outdoor enthusiasts, as well as urban professionals who like the warmth and comfort of its apparel.
Canada Goose expects to open up to five new units per year over the next three years as it expands its presence into more U.S. regions from its native Canada. In 2023, there will be permanent stores in both Denver and Las Vegas, as well as pop-up shops in both Aspen, Colo., and Detroit. Expect upcoming areas targeted to include thriving tourist-draw cities, especially within a two- to three-hour drive to a snow-themed destination, such as the metros of Scottsdale, Ariz., Washington, D.C., San Francisco and San Diego. Generally, Canada Goose looks for space between 3,000 and 5,000 s.f., but the brand has been known to also open units as large as 10,000 s.f., such as its flagship store in Chicago.
The luxury sports apparel chain seeks high-traffic shopping centers or urban retail street-front sites that are popular with tourists. Co-tenants can include other high-end retail brands such as Coach, Lululemon and Tumi.
Over the last five years, Canada Goose has continually expanded its line of merchandise beyond its down-filled winter coats, and the brand now sells footwear, as well as non-heavyweight outerwear, such as lightweight jackets, fleece knits and vests. This more lightweight fashion segment now accounts for 44% of total sales for Canada Goose and allows the brand to penetrate more warmer climate locations. To increase traffic, as well as add a fun wow factor to its upcoming stores, Canada Goose has implemented a special “Cold Room,” set at minus 10 degrees Fahrenheit, and a “Snow Room,” that produces snow flurries. Customers can literally test out the warmth of a jacket in these special rooms.
Stio, with eight “Mountain Studio” retail locations in the U.S., has been slowly increasing its retail footprint over the last year, and anticipates opening between three and five new units per year over the next two years. In January, the brand opened a unit in Boston, which, as a relatively large urban city, deviates away from Stio’s usual store placements that are within mountain resort towns or in mid-sized cities. However, Boston is in close proximity to local ski destinations, so future sites for the brand will probably include other densely populated locations that are within a two-hour maximum drive to local mountain resorts. Two more units will open later this year in South Lake Tahoe, Calif., by late spring, and in Bozeman, Mont., by the end of 2023. Anticipated future growth is rumored to potentially be in the metros of Ohio, Pennsylvania, Vermont, North Carolina, Washington state or upstate New York. Stio looks for units in the 1,000- to 2,300-s.f. range in retail street-front spaces, with health-oriented apparel and food co-tenants such as Lululemon, Sweetgreen and Equinox. Stio is a premium, authentic mountain lifestyle brand, known for its high-performance outdoor winter apparel.
