With a new store, Swedish sneaker brand Axel Arigato targets U.S. growth
It took 10 years, but Axel Arigato, a Swedish sneaker and streetwear brand, finally has its first store in the United States.
Axel Arigato’s new store, located in the New York City neighborhood of Soho, is 1,200 square feet and opened in September. It is the brand’s 16th store overall, with others in the U.K., Germany, Sweden, France and Denmark. Axel Arigato sells products to Americans via its e-commerce site and through retail partners, including Nordstrom and Bloomingdale’s, but it wanted a physical location in the country as part of its wider plan for growth. It’s also betting on in-store events to bring in more U.S. customers.
“We have, until now, at least from a physical perspective, been focusing on Europe, and we have established ourselves quite well here,” co-founder and CEO Albin Johansson told Modern Retail. “Now, we want to truly show the Americans what our brand is about, the DNA that we have, and build our community over there. We’re already looking for the next location in the U.S.”
Axel Arigato executives traveled to New York City shortly after launching their brand in 2014. The brand “always wanted to open up a store there,” Johansson said, but the spaces it toured “didn’t feel 100% right.” Then, the pandemic arrived, and the brand put off expansion to the U.S. once again. Now, after a decade, it’s opened its first store in the North American market.
Axel Arigato, which began as online-only, is a higher-end brand that caters to men and women. Its sneakers run from $260 to $485, while its boots go up to $555. The brand also sells knitwear, puffer jackets, hoodies, shirts and denim. A women’s tank top starts at $100, while a men’s T-shirt starts at $115.
Axel Arigato’s online business is approximately double the size of its store business. Most of its online sales in the U.S. come from the West Coast and the East Coast. In 2020, Axel Arigato co-founder Max Svärdh told Glossy that online sales in the U.S. accounted for close to 10% of the brand’s total digital sales.
While Johansson declined to state current revenue in the U.S. or globally, he told Modern Retail that the brand is at “very high growth.” In 2020, the private equity firm Eurazeo bought a majority stake in Axel Arigato for €56 million (~$60 million at the time). In January, Vogue Business reported that the brand was on track to reach €100 million (~$108 million) in sales by the end of 2024.
Going forward, one of Axel Arigato’s biggest challenges in the U.S. is building brand awareness, Johansson said. The strategy, he went on, is to “[make] sure that we break through the noise.”
To that point, Axel Arigato wants its New York City store to be a hub for events, as its other stores typically are. The brand uses its stores to throw launch parties, showcase live jazz and host DJ sets. When it opened its flagship store in London this summer, it held four events in the first four days. In New York City, it held five events within the first two weeks.
“We want the vibe to be very welcoming,” Johansson said. “We know that if people hang out in our stores… we’ll start to create a community. When you have a community, people are attached to the brand and engaged with the brand. When they are, they will end up making purchases, as well.”
Many brands have started holding events to draw in potential customers and raise their profile. The athleisure brand Vuori, for instance, offers yoga classes and aura readings. In February, the luggage brand Béis held a “car wash” for its bags, while in 2022, Saks ran a pop-up that offered fashion advice from store stylists.
Today, lots of consumers “want to go back to a physical shopping experience,” said Charlie Wade, global head of experiential and partnerships at the marketing agency VML. VML’s 2024 State of the Shopper report found that 31% of shoppers worldwide like to browse stores for inspiration, up from 24% in 2023.
“Brands are reacting to a shift in the mind of the consumer,” Wade said. “They have the opportunity to use their store real estate for experiences, to drive people into stores and give them a reason to go there and try stuff on.”
Axel Arigato hopes to open another store in North America soon but isn’t rushing the process, Johansson said. “I really hope the next one will not take 10 years [to open], but that’s how it is with our retail philosophy and strategy,” he explained. “We’re not stressed. We do have patience, and we want it to be right.”