New Balance, the global footwear and apparel company, is set to open a full-price flagship store on Auckland’s Queen Street as part of an expanded retail strategy aimed at strengthening its presence in New Zealand. The move signals the brand’s intention to enhance direct engagement with local consumers and improve its market performance.
Founded over 120 years ago, New Balance initially entered the New Zealand market through local wholesalers in the 1970s and 1980s before formally establishing a presence in the late 1990s. While the company has experienced significant global growth, reporting nearly $10 billion in revenue after five consecutive years of double-digit increases, its footprint in New Zealand has primarily relied on wholesale partners and outlet stores. This approach has resulted in the New Zealand market underperforming relative to the company’s broader Asia Pacific (APAC) direct-to-consumer (DTC) business, where retail stores and e-commerce now comprise approximately 45 percent of sales.
Financial disclosures submitted to the New Zealand Companies Office indicate that New Balance’s local arm recorded $47.7 million in sales for the fiscal year 2025, representing a 6.4 percent increase year-on-year. However, the company posted a net loss of $203,668 for the period, compared to a $1.2 million profit the previous year. The decline was attributed primarily to rising expenses, including distribution costs which grew from $10.3 million to $12.1 million.
Jonathan Clark, New Balance’s DTC director for the APAC region, emphasized that the company recognizes the importance of physical retail in establishing brand identity and customer connections. “One of the five strategic pillars for New Balance is DTC first,” Clark explained, noting that mono-brand stores serve as tangible expressions of the brand’s values. “For us, we want to create those emotional connections through to customers.”
Clark also acknowledged that finding the right retail location in New Zealand had taken longer than anticipated. The upcoming store will occupy a 300-square-meter corner site at 1 Vulcan Lane and Queen Street in Auckland’s central business district. The space, previously occupied by the jewelry retailer Michael Hill before its move to 94 Queen Street, will feature a broad product range with approximately half of the floor area dedicated to apparel.
The new flagship store is expected to differentiate itself from typical sports retail outlets in the market, although specific design and merchandising details remain forthcoming. The launch aligns with New Balance’s broader strategy to boost its local brand relevance while meeting financial targets as it deepens its retail presence across key markets in the region.