Delta Brands Expands Panta Rei Retail Footprint Despite Global Slump
Delta Brands is expanding its Panta Rei athletic wear chain to 15 physical stores alongside robust e-commerce, defying global struggles seen at giants like Nike.
Three years after halving its store rollout plan for its athletic apparel brand Panta Rei and shifting focus to e-commerce, Delta Brands is once again expanding its physical retail footprint. The brand's tenth store opened two weeks ago at BIG Bat Yam, with the next location planned for G Kfar Saba, as the company targets a network of 15 branches. This comes as global category giants like Nike and Lululemon struggle to post growth.
Delta launched the brand in 2022, leveraging technology from parent company Delta Galil, ahead of the close of the COVID-19 pandemic which had spiked athletic wear sales globally and in Israel. During 2023, Delta spoke of a target of 20 stores for the brand alongside an online site. By the end of that year, in the midst of the Swords of Iron war, Delta Brands—managed by Anat Bogner—announced that the emphasis would shift to online sales, reducing the expansion target to 10 branches. This followed a surge in online sales during a year that saw the entry of international brands Lululemon and Alo Yoga into Israel.
Expanding the Physical Network
"Three years ago we announced we would strengthen online," Bogner told Calcalist yesterday. She added, "We have a plan to open five additional stores, alongside a site that is performing very strongly. The brand was born in the era of influencers and naturally is strong online." She confirmed that "additional Panta Rei stores will open."
Concurrently, Delta launched a new Panta Rei collection this week in collaboration with international dancer Or Kahlon. While the success of athletic fashion brands was once measured primarily by sneaker sales, today one of the most critical competition arenas is athletic apparel, encompassing leggings, sports bras, workout shirts, running shorts, yoga wear, and tracksuits. Athletic wear has evolved into a versatile category, with consumers no longer purchasing leggings solely for yoga, but seeking comfortable apparel with multiple uses.
Navigating Global Trends and Logistics
This trend allows brands to increase purchase frequency and sell additional items to customers, but it also places them in direct competition with traditional fashion companies that have launched sportswear collections. Globally, some athletic brands are experiencing turbulence, changing managements, and shifting strategies. For instance, Nike has struggled to report sales growth for several quarters, while Lululemon has also suffered from weak sales, primarily in North America, lowering its annual forecast twice this year.
Despite this, Bogner argues the situation is inverted and the sports sector is actually growing. "There is one brand in decline (Lululemon - Ed.), but many others are on the rise," she contends. "It is not that the category is fading. The entire longevity and wellness trend is accelerating this category. People want to be healthier, even if they do not work out. There is interest in the category beyond it being fashionable."
This week, Delta Brands announced that its new automated logistics center, in which it invested 160 million NIS, will open in the second quarter of 2027. Construction of the project was delayed by two years after foreign workers participating in construction hesitated to arrive in Israel due to the security situation. The robotic logistics center will boost online sales capacity by 180%.
