Shoes were among the earliest product markets to gain traction in ecommerce channels. Consumers could easily find the brand, model, and size they wanted, and unlike other apparel segments, people did not necessarily feel compelled to get a sense of their texture. Innovators like Zappos (later acquired by Amazon) encouraged such channel adoption, promising buyers that they could easily return any shoes that didn’t fit quite right. Both retailers and shoe brands thus have enjoyed a steady online business. In such a market context, what might drive a well-known brand to prioritize shoe sales through brick-and-mortar stores?

Hoka offers a clear answer: Its market research has shown that sales through physical stores outperform online sales. The brand, owned by the Deckers corporation, specified further that cost-conscious consumers seem driven to search for deals on Hokas online, but brand aficionados, who are more likely to pay full price, seem determined to visit retail stores in person. In response, Hoka has expanded its collaborations with various retailers, in addition to opening more of its own physical stores, including its first in Germany, which will join a store in London and two in Paris.

The brand’s expansion across Europe parallels its product line expansion efforts. For example, after “sneaker loafers” made a big splash last year, the company introduced its own model, the versatile Speed Loafer. In a clear appeal to Hoka’s core customers, it combines a functional sneaker sole with the more formal looking, leather upper construction of a loafer. Priced at just under $200, the loafer also occupies a middle ground in terms of cost—more expensive than versions offered in retail stores by competitors like New Balance but far less costly than luxury versions available from high-fashion ateliers, such as Fendi.

Notably, the parent company Deckers also owns the UGG brand, known for its own unique, fleece-lined version of boots. Wholesale sales of UGGs to retail partners, to be stocked in stores, have been increasing, by almost one-third compared with last year, both domestically and overseas.

Discussion Questions

1. What factors might have led to Hoka’s sales figures to be so much more appealing in physical retail channels, especially for full-price items?
2. Can introducing new products support the company’s physical retail strategy? How?

Sources: Daphne Howland, “Hoka Brick-and-Mortar Stores ‘The Primary Venue for Full-Price Sales’,” Retail Dive, July 25, 2025; “Hoka Opens New Flagship Store in Berlin,” SGB Media, August 21, 2025; Ross Dwyer, “HOKA Debuts New Speed Loafer Silhouette,” Hypebeast, January 22, 2025.