top of page
Search

On’s next Australian flagship has a bigger job to do

Locyra
6 hours ago
5 min read

Kylian Mbappé’s move from Nike has put On in the spotlight.[1][2] The Swiss sportswear brand already counts Roger Federer, a co-owner since 2019, among its backers.[3]

In Australia, On has two dedicated stores and a much wider stockist network.[4][5][6] Its next flagship needs to give customers more reasons to choose the brand—including when they buy from somebody else. Where could it do that?


Build on the network already there

On opened at Emporium Melbourne in October 2024 and Westfield Bondi Junction in August 2026. At 390 and 493 square metres respectively, these are substantial showcases.[4][5] But its locator already lists hundreds of Australian stockist records, spanning rebel, The Athlete’s Foot, JD Sports, David Jones and specialist running retailers.[6]

Those partners offer access, multibrand choice and advice. Chadstone Shopping Centre alone has six listed retail brands stocking On.[6] A dedicated store there would need to add something customers cannot get from the existing mix.

That role starts with a fuller presentation of the brand. At the Melbourne opening, On’s local management described the opportunity to show more of its clothing collection, alongside shoe trials, expert guidance and a run-and-walk club.[7] Some stockists already sell On apparel, so clothing alone is no point of difference.[8] The opportunity is to bring the range, product expertise and community together in one recognisable home.

Wholesale remains valuable even for the largest brands. In fiscal 2026, Nike’s wholesale revenue rose 6% while NIKE Direct, covering digital and company stores, fell 6%, both on a reported basis.[13] On has little reason to treat its stockists as something to outgrow.

HOKA offers a closer local comparison: its first Australian flagship followed an established network of more than 200 stockists across Australia and New Zealand. Local distributor Accent Group described the store as a way to build the brand and show its breadth.[9]


Can a flagship help the stockists?

There is evidence that branded stores can create demand elsewhere. A Journal of Marketing study of ten openings by a German cereal brand found increased sales through independent supermarkets, partly because more supermarkets chose to stock it. The brand’s own online sales experienced cannibalisation.[10]

A 2016 footwear working paper found that single-brand store openings increased purchases through an independent online footwear retailer. Multibrand openings had the opposite net effect.[11]

Neither study proves an Australian On flagship will lift nearby stockists’ sales. They do support a plausible role: customers discover and try the brand in one place, then buy where it suits them. Success should be judged across the network, after store costs, rather than on flagship turnover alone.


From first flagships to a wider network

HOKA’s announced 2023 programme covered Sydney, Melbourne and Brisbane, mixing concept stores, a pop-up and an outlet.[23] Karrinyup Shopping Centre followed in December 2024; a Sydney CBD flagship was announced for June 2026.[24][25] An eastern launch did not require finishing Sydney’s network before moving west.

On’s own London expansion followed Regent Street with Spitalfields and Battersea, reaching different parts of the city.[12] VEJA combined its first London store with a second New York address in 2024, while retaining extensive multibrand distribution.[26] These examples support a flexible sequence: deepen established cities while taking attractive opportunities in new markets.


Where could On go next?

We would start by giving Sydney and Melbourne fuller coverage, while keeping the next interstate opportunity open. Each new store should have a clear role alongside On’s existing stores and stockists.


1. Give Sydney and Melbourne fuller coverage

Sydney needs several distinct propositions. A CBD address could sit around Pitt Street Mall, Westfield Sydney, Martin Place or the Wynyard Station precinct. Martin Place’s early signs of retail revitalisation include Peloton and MECCA’s pop-up.[21][22] On the Lower North Shore, the priority would be a presence in Chatswood. Chatswood Chase offers the more premium setting, with Westfield Chatswood an alternative address for the same district. Mosman or Crows Nest could offer a different high-street format, while Westfield Parramatta brings western Sydney into the conversation.

Melbourne warrants a network beyond Emporium Melbourne. Chadstone Shopping Centre and Highpoint Shopping Centre are starting points for that discussion, with Westfield Doncaster, Eastland Shopping Centre and Westfield Southland offering further options. The choice is which locations complement the existing store and stockists, rather than asking one flagship to serve the whole city.


2. Make the next interstate store earn its place

Queensland is a logical continuation of an eastern-state rollout. Westfield Chermside offers a Brisbane option, while Pacific Fair Shopping Centre puts the Gold Coast into consideration. The decision is which market On wants to establish a dedicated presence in first.

Perth should compete for the next opening rather than wait automatically. Karrinyup Shopping Centre and Claremont Quarter offer alternative starting points, with Westfield Booragoon also worth considering. The choice should reflect the setting On wants for its first dedicated store in the market.

Adelaide brings Burnside Village and Westfield Marion into the discussion. Both deserve consideration for a first store, with the eventual choice depending on the brand experience, premises and role On wants that store to fulfil.


3. Broaden the network as the business grows

Nike’s mature network illustrates the eventual breadth: its directory includes Chatswood Chase, Macquarie Centre and Westfield Parramatta in Sydney, and Eastland Shopping Centre, Westfield Southland and Westfield Fountain Gate in Melbourne.[27][28] These provide examples of metropolitan coverage, not an opening order for On.

These are possible locations, not announced openings. LoculChoices can help assess customer fit and how each addition would complement the wider network; the shortlist is a starting point for those decisions.

For a landlord, the strongest pitch is a place that helps On win more customers across that network. Another point of sale is only part of the job.


Sources

[1] https://press.on-running.com/on-enters-football-alongside-kylian-mbappe — On announces its entry into football with Kylian Mbappé

[3] https://press.on-running.com/roger-federer-joins-swiss-running-brand-on-as-an-entrepreneur — Roger Federer joins On as a co-owner, November 2019

[6] https://customer-service.on-running.com/en-au/dealers — On’s official stockist locator

[7] https://tempojournal.com/article/on-laces-up-in-melbourne — On Oceania management on the role of the Melbourne store

[9] https://ragtrader.com.au/news/hoka-accent-group-prepares-to-scale-brand-deal — HOKA’s Australian flagship and wholesale strategy

[10] https://journals.sagepub.com/doi/full/10.1177/00222429231193371 — Assessing the Multichannel Impact of Brand Store Entry by a Digital-Native Grocery Brand

[11] https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2732948 — Showrooming vs. Competing: The Role of Product Assortment and Price

[12] https://press.on-running.com/on-announces-third-london-store-opening-at-battersea-power-station — On’s London expansion and running-community rationale

[22] https://www.mecca.com/en-au/stores/mecca-martin-place-pop-L254 — MECCA Martin Place POP store listing

[25] https://insideretail.com.au/top-stories/hoka-to-open-pitt-street-flagship-202606 — HOKA: Sydney CBD flagship planned for June 2026

[26] https://us.fashionnetwork.com/news/Veja-opens-new-stores-in-london-brooklyn,1633443.html — VEJA: first London and second New York stores, April 2024

[27] https://www.nike.com/retail/directory/australia/new-south-wales — Nike official New South Wales store directory

[28] https://www.nike.com/retail/directory/australia/victoria — Nike official Victoria store directory


About Locyra

Locyra is reviewing public retail-property reporting, selected industry commentary, and Loculyze's internal property frameworks. It is a synthesis of what we have read plus what we know about how retail places work. It does not use confidential client data.

Comments

bottom of page