Inside On Running’s Newest U.S. Flagship
On Running opened its seventh and largest U.S. location in Chicago’s Gold Coast neighborhood this past weekend, marking the brand’s latest flagship store in the United States.
On Disrupts the $174 Billion Global Athletic Footwear Market
Founded in 2010, On is a Swiss performance sportswear brand known for its innovative approach to footwear and apparel. The company’s signature footwear designs feature proprietary CloudTec® technology, characterized by the distinct holes in the soles, called “clouds”, which provide a cushioned, shock-absorbing running experience. Tennis icon Roger Federer joined On as an investor and partner in 2019, elevating its global presence. At McMillanDoolittle, we agree that On is a brand to watch as it continues to capture market share from established giants like Nike and Adidas. Since going public in 2021, On has seen sustained growth; in the first six months of this year, net sales reached $1.3 billion—a 24% year-over-year increase.
Earlier this year, On announced plans to open 100 additional stores worldwide, driven by its success with direct-to-consumer (DTC) sales. In fiscal year 2023, net sales through DTC channels grew by 50.9% compared to 2022, while wholesale sales saw a 44.2% increase. The new Chicago flagship supports the company’s brick-and-mortar global expansion strategy and focus on enhancing its DTC channels.
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On Arrives in Chicago with Largest U.S. Store
On has quickly expanded its brick-and-mortar footprint since opening its first store in NYC in 2020. Four years later, its newest location on Chicago’s Rush Street marks the company’s 17th location, joining a global fleet of stores with locations in Paris, London, Milan, and Tokyo. Although On Flagships often showcase the brand’s CloudTec® technology through robotic displays and educational features, the new Chicago store takes a more traditional approach by scaling back digital and tech integrations to focus on showcasing the products themselves. During our visit, we noted that the store’s thoughtful design elements and strong emphasis on service supported an excellent customer-centric experience. Take a 30-second tour of the store with us!
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We applied our proprietary 8C’s Customer Experience Model to analyze key elements of the store experience. We were particularly impressed by how On executed the elements of Choice, Communication, Control and Connection. Contact us to learn more about our Concept and Customer Experience Development services, including our comprehensive assessment of positioning and in-store shopping experiences.
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Choice & Communication: The Chicago store showcases over 150 SKUS across various models and colorways, yet the store layout avoids overwhelming customers with too many choices. Much of this is due to the signature “wow-factor” feature present in all On stores—the display of shoes in sleek, individual metal boxes. At the Chicago location, these displays are arranged along both sides of the store and on two freestanding structures in the center.
Additionally, all products are organized in-store by activity, such as Lifestyle, Outdoor, and Run, facilitating intuitive and convenient product exploration. This is especially important for apparel – an On offering that customers may be less familiar with. Shoppers can try-on apparel in one of the seven dressing rooms.
With minimal text accompanying the products (including no mention of prices!), customers are encouraged to engage directly with knowledgeable On associates to learn about the unique technology and design behind each shoe.
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Control: The shopping journey at On is unique. The shoe display, dubbed the “Magic Wall”, directly pulls out of the wall to reveal inventory in every size for easy access and immediate try-on. Each column holds only one color of each model to optimize storage space, so you may try on a slightly different colorway than the one you plan to purchase. While this isn’t ideal, the speed at which customers can test shoes is remarkable—and there are no cardboard inserts or tissue paper to deal with!
Since only On associates can access the Wall, this also creates a natural point of interaction with staff. Once you have made your selection, the associate enters your choice into the system via a handheld device. After a few minutes, the product is ready at the register for purchase. This final step took longer than expected, but overall, the process was highly efficient.
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Connection: The only traditional signage in the store was found in the dressing rooms, promoting the On Run Club, which meets every Wednesday at 6 p.m. at the Rush Street location. Around the world, On Run Club participants gather at On stores on Wednesday evenings, along with dedicated professional run coaches. In Zurich, the store also offers HIIT classes, and the LA location features a cold plunge. Many of the clubs provide participants the opportunity to demo On’s latest products. After the run, most groups return to the store to enjoy recovery drinks and snacks; the open layout of the Chicago flagship provides an ideal setting for these community-driven gatherings. The On Run Club highlights the brand’s commitment to building a global community of athletes.
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We will continue to monitor On’s expansion in the US and globally. For additional coverage of players in the footwear industry, we suggest you tune into a recent Schwab Network Interview with Amanda Lai.
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