U.S. Sports Brand Under Armour to Open Australia Outlet in 2014
American sportswear manufacturer Under Armour aims to double its sales to $4 billion by 2016, and one of its strategies is to expand its overseas market. To achieve that, the retailer would open its first Australian store in 2014 and could expand its strategic relationship with Rebel Sport, said Kevin Plank, founder and chief executive officer of Under Armour.
The deal with Rebel Sport would support its push for a greater share of the Australian market since Rebel would act as its exclusive distributor in Australia since it was purchased in late 2011 for $610 million by the Super Retail Group, an ASX-listed company. It is Australia's largest sports equipment and clothing chain.
With its heavy focus on specialist merchandise and equipment that target runners and joggers, Rebel would appeal to Aussie shoppers, particularly those into fitness and outdoor endurance events.
Under Armour, which Mr Plank established in 1996, has a strong consumer base among runners since it offers clothing and footwear often used in endurance event such as Tough Mudder and similar outdoor races held in Australia.
In 2012, Under Armour reported sales of $1.8 billion, which was a 25 per cent expansion from 2011 sales. The higher sales figure was achieve by the retailer changing its distribution systems.
Besides Australia, the clothing brand will also open outlets in nine other countries.
Other foreign retailers that recently ventured recently in Australia are U.S. homeware giant Williams-Sonoma, Spanish fashion icon Zara, Japanese department store Uniqlo and Swedish retailer H&M.