Celeb favorite Alo opening two more Minnesota stores as malls capitalize on athleisurewear trend

Alo, known for athleisure worn by stars like Taylor Swift, is expanding in the Twin Cities.

The retailer already has a store at Galleria in Edina. Now, it will open one at Mall of America in Bloomington over the summer and at Ridgedale Center in Minnetonka this fall.

Alo, Athleta and Lululemon are quickly becoming staples in more upscale malls as the demand for athleisure outlives pandemic at-home wardrobes, evidenced by larger sections at department stores and Target’s commitment to its owned private-label brand All In Motion.

“Athleisure is now more than finding an outfit to wear to your workout class, and we’re seeing retailers expand their merchandise to everyday wear that you can even wear to the office,” said Britt Burridge, vice president of leasing for Brookfield Properties, which operates Ridgedale.

Yet the space is getting more competitive as its rate of growth slows, said Neil Saunders, managing director at GlobalData Retail.

“To grow in a convincing way, brands need to steal sales from each other,” Saunders said. “Smaller brands like Alo and Vuori are capturing consumer attention, whereas some of the more established brands like Nike are struggling.”

Indeed, when Alo opened in Galleria in June 2024, more than 400 people RSVP’d for its early access grand opening, which included attendees like J.J. McCarthy, the Vikings’ quarterback and an Alo ambassador. The opening was the retailer’s highest opening in 2024 in terms of sales and traffic.

While Alo declined to discuss specifics of its expansion into Minnesota, it said the stores represent “a manifestation of our mission to bring people together through movement and mindfulness.”

The men’s and women’s activewear market has reached $69.7 billion annually, representing 2% year-over-year growth as of February, said Kristen Classi-Zummo, apparel industry adviser at Circana.

New brands began cropping up during the pandemic, hoping to cash in on the demand for comfortable styles. But many didn’t know how to make appropriate activewear, said Matt Powell, retail adviser at Spurwink River.

Those that did, like Alo, have kept a piece of the market from dominant players such as Under Armour, Nike and Adidas as people search for “performance as fashion,” Powell said.

“They are all growing much faster than the big guys are,” he said.

Lululemon has surpassed Nike as the largest U.S. women’s activewear retailer, Powell said, making waves in a once exclusive space.

The brand announced Thursday its fiscal 2024 sales were $10.59 billion, beating the high end of its guidance of $10.49 billion.

Nike posted a fiscal third quarter revenue decline of 11.5% last Thursday and forecast another decrease for the current quarter.

Alo, like Lululemon, depends on its assembly of social media influencers and also operates yoga studios and a yoga app.

For those who pick the right fabrics, colors and silhouettes, athleisure is still a high-margin business, analysts said.

And that has other big players expanding their athleisurewear options. Powell pointed to Target’s All In Motion as a more affordable option.

In 2024, All In Motion sales grew by more than 10%.

Michael Fiddelke, Target’s chief operating officer, said in the Minneapolis-based retailer’s quarterly conference call that “before my two daughters fell in love with All In Motion, I winced at the cost of an athleisure outfit for them.”

A pair of women’s high-rise leggings from Target is priced at $25. A similar style at Alo is $108.

In anticipation of continued athleisurewear demand, Target announced a multiyear partnership with Champion. The collection will focus on “trend-forward” activewear, with most items available for $40 or less.

Lululemon and Alo rely on a cadre of social media influencers as they drop new colors every few weeks to draw customers back often.

While some shoppers have noticed colors being recycled every few years, dedicated customers keep up with the latest.

“We definitely see shoppers coming in from the hype built up by influencers on social media,” said Carrie Charleston, vice president of leasing for Mall of America.

The Lululemon at MOA operates what it calls a “fuel space cafe” and offers fitness classes at its on-site studio.

The Athleta and Lululemon stores at Ridgedale host community events, working with local fitness influencers for in-store or remote events.

Sporting goods store Dick’s House of Sport offers everything from batting cages to golf simulators, a climbing wall and an outdoor field that doubles as an ice rink in the winter.

On the footwear side of athleisure, Galleria’s New Balance store uses a 3D foot scanner to capture precise measurements of foot length, width and arch height, to help customers find the perfect fit.

“They all seem to really want to build their community,” said Charleston of the athleisurewear brands.

While the pandemic catapulted many athleisure brands into success, Circana’s Classi-Zummo said an ongoing cultural shift toward comfort and casual wear has permanently segmented activewear into consumer wardrobes.

“Despite potential style fluctuations, consumers continue to gravitate towards clothing categories that offer comfort and versatility,” she said.