On Friday night, a DJ will spin music and VIP guests will enjoy oysters and sushi at an opening party for On’s new retail store in Northwest Portland.
The vibe will be the opposite 8 miles away at Nike’s 400-acre campus, where the industry leader will end the first week of a bruising mass layoff, the first for the company since 2020, as it retools and works to spark its innovation engine.
The contrast is the latest sign of the ongoing upheaval in the sneaker business, one of Oregon’s signature industries. Homegrown Nike has dominated for years and remains the industry goliath, but its momentum has slowed recently and relative newcomers like On, Hoka and Brooks have been exploiting consumer demand for new products.
“The consumer was telling us before the pandemic that they wanted new and unique brands and unique products,” said Matt Powell, senior adviser for BCE Consulting. “Hoka and On are examples of brands that provide that and are winning right now. The marketplace has changed.”
Founded in 2010 in the Swiss Alps, Zurich-based On is known for its square-shaped “run on clouds” soles. It’s been on a hot streak, with sales growing 47% in the most recent quarter, which also marked seven quarters in a row of record top-line revenue. The company went public in 2021.
The Portland store, which opens Saturday, is 3,400 square feet. It’s located at Northwest 23rd Avenue and Hoyt Street, about a mile from the company’s Americas headquarters in the Pearl District. Opening festivities on Saturday include a 9 a.m. scavenger hunt-like trail run through Forest Park, with prizes including a trip to run a mountain race.
“It makes sense to have a retail store in Portland because this is our home and it’s close to our Americas headquarters,” said Britt Olsen, On’s general manager of the Americas and head of global commercial strategy.
On opened a small office in Portland in 2013, drawn here by the deep talent pool created by Nike, Columbia Sportswear and the North American headquarters of Adidas. One of On’s first U.S. employees was Ted Goodlake, formerly of Nike.
Olsen joined On’s Portland office in 2014. She said the office furniture at the time consisted of an Ikea table.
“We outgrew it when we got to five people,” she said.
On has since grown from 30 employees globally to around 2,400. It’s also grown significantly in Portland.
The company doubled its office space in the Tanner Point building to 60,000 square feet last year. It now has about 260 employees here, including retail workers, and 500 in the Americas, about double a year ago.
On’s planning to hire a small team here that designs and creates products, work previously done exclusively in Zurich.
The new Portland store showcases the company’s entire product line, including apparel and shoes for running, trail running, tennis and everyday wear. The aesthetic is clean and modern, befitting the company’s Swiss roots and design ethos.
“You see it very much in our product,” Olsen said. “Minimalism. Do more with less. This inspires us. Materials are really important.”
The central feature of the store is a large self-serve shoe wall, which On calls a “magic wall” because it has hidden shelves that make it easier for customers to quickly try on shoes.
The store also offers demo pairs for customers who want to take shoes for a run around the block. Olsen hopes the location near Forest Park makes the store a hub for runners.
“It’s all about creating the experience in-store where people can demo actual product,” she said.
Historically, On sold its footwear and apparel through wholesale partners like sporting goods stores and running stores. As part of its growth plans, it wants to open as many as 20 new stores this year, including in Berlin, Austin and Chicago, but the majority in China.
Although the company’s distribution channels are expanding, Olsen said the core focus won’t change.
“We’ve been so successful for the past 13 years focusing on ourselves and the technology and innovation we’re offering,” she said. “That’s what we’re going to keep focused on.”
– Matthew Kish covers business, including the sportswear and banking industries. Reach him at 503-221-4386, mkish@oregonian.com or @matthewkish.
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