Route One was looking to grow its business by opening more stores and increasing its product mix and brand exposure. The main focus was to change the business from focusing purely on hardware goods which was primarily equipment such as skateboards, bikes and kites, onto the software goods which was essentially clothing and footwear. The latter had an 80 per cent margin. The equipment was where they got the look, feel and credibility; however this was only a 30 per cent margin.
By changing the business focus on clothing and footwear, it transformed the net profit and the product offering which eventually enabled the business to grow sevenfold by opening 20 new stores, rebranding and launching the website, being more social media savvy and having better links to the extreme sport community. This led to the business being one of the strongest in the market and gave them more buying power as they now had economies of scale.
Growth of Extreme Sports Brand
What We Did
Opened 20 stores, Grew the business six-fold, Created a high street brand.
People, Product, Performance, Presentation, Place, Planning, Promotions, Profit