No store? No worry as Kings sweep US
CULTURE Kings, the Australian sneaker and streetwear retailer known for its hyperactive stores featuring DJs, basketball courts and barbers, is set for expansion into the US with its owners believing its retail model can be taken to the world.
The streetwear chain that opened on the Gold Coast 13 years ago has been dubbed the “future of retail” by $US1.4bn ($A1.9bn) US diversified apparel business a.k.a Brands.
Underlining its international appeal, the US business is the fastest growing arm of the Culture Kings retail empire despite it not operating a store in North America.
Taking advantage of online brand awareness, a team of executives, and social media influencers, is being assembled prepare for its entry into the world’s biggest sneakers market with a distribution centre planned for California followed by its maiden store in 2022.
a.k.a Brands chief executive Jill Ramsey has laid out her growth plans for Culture Kings to investors and analysts, talking up the retailer that she has argued to Wall Street has global reach.
“These highly experiential and innovative stores are like no other, and setting new standard for the future of retail. Their stores serve as powerful marketing engines with the theatrical and celebrity event format that fuel demand and provide powerful content for their digital channels,” Ms Ramsey said.
“The success of Culture Kings first market expansion outside of Australia (Auckland) further bolsters our confidence to expand this popular brand to other markets.
“What excites about Culture Kings, this is a really popular men’s street wear brand in Australia. Their US business is the fastest growing portion of their business, and we’re seeing just tremendous growth on their US online business.”
A majority stake in the hip streetwear retailer was sold earlier this year to a.k.a Brands for $600m, which catapulted founders Simon and Tah-nee Beard into Australia’s richest ranks.
It was a hefty price given Culture Kings only has eight stores. But such is the power of the on-trend retail brand that when a new store recently opened in Auckland, New Zealand, there was a sixhour line to get in.
Meanwhile, it maintained strong sales growth through the first quarter with revenue up 7 per cent to $US64m despite some stores closed.
Sales rose almost 30 per cent, driven by online sales in the US, Europe and Asia where Culture Kings does not operate physical stores.
Ms Ramsey said as Culture Kings built its team in the US it was following a similar strategy to a.k.a Brands’ other fashion chain Princess Poly, which relies on social media and influencer marketing.