Delta Brands Expands Panta Rei Stores Amidst Global Sportswear Challenges
Translated & summarized from Calcalist by baba
Delta Brands is expanding its physical Panta Rei sportswear stores to a target of 15 locations, reversing a previous reduction in store plans. The company is also investing in a new automated logistics center to boost online sales. This move comes as global sportswear giants like Nike and Lululemon face sales challenges, though Delta Brands' CEO believes the overall sports category is growing. The brand recently launched a new collection in collaboration with dancer Or Kehalon.
The story in 5 lines · by baba
- Delta Brands is expanding its Panta Rei sportswear stores to a goal of 15 locations.
- The company is investing 160 million shekels in a new automated logistics center.
- Global sportswear leaders Nike and Lululemon are currently experiencing sales difficulties.
- Delta Brands' CEO Anat Bogner believes the overall sports apparel category is growing.
- A new Panta Rei collection was launched in collaboration with dancer Or Kehalon.
Delta Brands is reversing its previous strategy by expanding its physical store presence for its sportswear brand, Panta Rei, after having halved its store plans three years ago to focus on online sales. The tenth Panta Rei store recently opened in Big Bat Yam, with another planned for G Kfar Saba, and the company aims to reach 15 branches. This expansion comes as global sportswear giants like Nike and Lululemon struggle to show growth.
Panta Rei, launched in late 2022 and leveraging technology from parent company Delta Galil, saw its initial expansion plans for 20 stores and an online presence boosted by the COVID-19 pandemic's surge in sportswear sales. However, by the end of 2023, amidst the "Swords of Iron" war, Delta Brands shifted its emphasis to online sales, reducing the physical store target to 10 locations due to a significant jump in online brand sales. Anat Bogner, CEO of Delta Brands, confirmed the plan to open five additional stores, highlighting the brand's strong online performance, partly attributed to its origins in the influencer era.
Delta Brands recently launched a new Panta Rei collection in collaboration with international dancer Or Kehalon. The sportswear market, once dominated by athletic shoes, now sees significant competition in apparel like leggings, sports bras, and training tops, which have become versatile for various uses beyond specific sports. This trend allows brands to increase purchase frequency but also pits them against traditional fashion companies entering the sports market.
Globally, the sportswear sector is experiencing turbulence, with Nike facing prolonged sales stagnation and Lululemon reporting weakened sales, particularly in North America, leading to a lowered annual forecast. Despite these challenges, Bogner believes the sports category is growing, driven by trends in longevity and wellness, with consumers seeking comfortable, multi-use apparel. She noted that while one brand (Lululemon) may be declining, many others are rising.
In parallel, Delta Brands announced that its new automated logistics center, a 160 million shekel investment, is slated to open in the second quarter of 2027. The project's construction was delayed by two years due to foreign workers' concerns about the security situation in Israel. The logistics center is designed to boost online sales output by 180%, aiming to improve online customer service, with 80% of orders currently delivered the next day and aspirations for same-day delivery. Bogner also mentioned minor delays in item transport from China due to recent typhoons, but stated there are no major disruptions and fuel prices have not yet impacted them.