Sports chain XXL is to buy into the Norwegian clothing, shoes and hiking equipment company Stormberg. Under the agreement, XXL will be an exclusive partner for Stormberg. The collaboration is part of XXL’s strategy to strengthen its investment in its own brands.
Under the partnership, Stormberg will make its entire production apparatus available to the Norwegian-based retail chain XXL, whilst continuing with its own distribution. Although XXL will be an exclusive partner, Stormberg will continue to be sold through its own stores and online. The brands will also collaborate on the development and production of hiking clothing and equipment, which will be sold under the XXL brand.
“It will be exciting to combine Stormberg’s design and production expertise with XXL’s core competence, which is running retail,” says Freddy Sobin, who took up the role of XXL CEO at the start of May this year.
Sobin adds: “We want to strengthen the low-price position in XXL and offer consumers more competitive products at low prices. Now we have the opportunity to take back market share in an important segment. At the same time, this is also an important investment to strengthen XXL’s margins.”
The partnership also offers opportunities to improve the sustainability credentials of XXL. Said Sobin: “Stormberg is one of the strongest brands in sports and outdoor life in Norway, and is also extremely good at sustainability. It fits well with XXL’s sustainability strategy, where we both can and want to do more.”
XXL will initially buy 15 percent of Stormberg, with DN additionally reporting an option to buy up to 49 percent. The price has not been disclosed. In an interview with DN, Stormberg founder Steinar J. Olsen is quoted as saying, “I will primarily use [the] money to buy shares in XXL.”
