Swedish outdoor brand Fjällräven is making significant strides in expanding its presence in North America by opening two new locations in Boston this September. The brand’s iconic curled-up fox logo will be visible at a Fjällräven brand store situated at 165 Newbury Street and a new concept store called Fjällräven + Co. just two blocks away at 304 Newbury Street. This new store type will house not only Fjällräven goods but also items from its sister brands, including German brand Hanwag, U.S.-based Royal Robbins, and Norwegian Devold. The inaugural weekend for these stores is slated for September 11-13.
Growth Strategy in North America
Fjällräven, which has been contributing to the outdoor gear market since 1960, has been particularly focused on boosting its footprint in North America. Known for its vibrant Kånken backpack, the brand also sells a variety of outerwear. According to Nathan Dopp, CEO of Fjällräven Americas, the company’s branded locations provide a platform to present their products in a curated manner that aligns with their brand ethos. This strategy reflects Fjällräven’s goal to appeal not only to hardcore outdoor enthusiasts but to a broader audience.
Globally, the company generates about $700 million in revenue each year, with its sales in North America evenly divided between wholesale and direct-to-consumer. Some of their prominent retail partners include Nordstrom and Urban Outfitters. However, Fjällräven operates more than 30 stores across North America, having opened its first U.S. store in 2009 in New York City. This expansion was a bid to increase brand visibility, which has since led the U.S. to become Fjällräven’s highest revenue-generating market.
Strategic Store Design
Fjällräven attributes approximately 24-30% of its North American revenue to these stores. The Kånken backpack contributed significantly to this growth, skyrocketing in popularity among hipsters, students, and even celebrities like Madonna after its U.S. introduction in 2007. Sales of the backpack surged tenfold from 2010 to 2017. Dopp explains that the company’s intention was never for the Kånken to be a transient trend but rather part of a larger brand narrative, which they sought to establish through direct retail efforts rather than relying on third-party partners.
The layout of the stores reflects this philosophy. With the Kånken prominently displayed towards the back, customers are led through various other offerings along a meandering path, much like a nature trail, which encourages them to explore the brand’s full product line.
Adaptation and Future Plans
The importance of Fjällräven’s own stores became particularly evident during the pandemic, when sales of the Kånken backpack dipped due to the shutdown of in-person schooling. Nevertheless, consumers explored Fjällräven’s other outdoor gear during this period, leading to an increase in sales for their broader range of products.
Fjällräven is part of a larger trend of European outdoor brands expanding into the North American market. Other brands like France’s Salomon and Switzerland’s Mammut are increasing their retail presence in the U.S. Despite saturation and high competition, international brands are finding opportunities in the U.S. market, often using it as a trial ground for new retail concepts, much like the Dutch swimwear brand Wallien, which recently opened a pop-up location following significant e-commerce success in the U.S.
Expansion Beyond the U.S.
Beyond the U.S., Fjällräven is also focusing on growth in other North American territories. The brand plans to open its eighth location in Mexico and is experiencing growth in Canada, where customers have shown an appreciation for high-quality, durable goods. Canada accounts for about 24% of Fjällräven’s North American business while revenue in Mexico is projected to reach $8 million this year.
Fjällräven intends to use the North American expansion strategy as a model for its new retail concept, with plans to open two more Fjällräven + Co. locations in Europe within the next four months. As the brand approaches its 70th anniversary in 2030, it aims to maintain its distinctive appeal by targeting customers who share its outdoor lifestyle values.
Reporting based on coverage first published by modernretail.co.