U.K.-based Mountain Warehouse wasn’t planning on acquiring a well-known U.S. retailer as part of its global expansion strategy

But when Eastern Mountain Sports (EMS), Bob’s Stores, and its related entities filed for bankruptcy this past spring, Mountain Warehouse emerged as a stalking horse bidder, offering $5 million for seven profitable stores. After no competing offers came through, Mountain Warehouse snapped up the stores, the brand name, and its website for $10 milion from former owner GoDigital.

“We saw EMS as an opportunity too good to miss,” said Mountain Warehouse’s founder, Mark Neale, in an interview with The Daily. “We believe there’s a great brand here with tremendous pedigree and passionate people who can help us understand the market even better and create a bright future for us in the U.S.”

Mountain Warehouse isn’t new to North America. It already operates several stores in the Northeastern U.S., and it aims to add or relocate 50 stores worldwide this year, bringing its total to 363. The EMS acquisition, while unplanned, helps expedite that strategy, Neale said.

“It’s an additional initiative but one that fits and allows us to accelerate our existing plans to grow our North American business,” he said.

Neale shared more about the appeal of the EMS brand, why he’s intent on preserving it, and how it fits into the larger strategy for Mountain Warehouse.

Does Mountain Warehouse already operate non-Mountain Warehouse stores? 

Mark Neale: We bought the U.K. lifestyle brand Animal back in 2021 and have been re-establishing its footprint since. We now operate seven standalone stores and an e-commerce business in the U.K. with additional distribution through our Mountain Warehouse estate in the U.K. and international markets. The Animal brand is going from strength and we’re continuing to invest in its growth with an expanded product range and more stores on the horizon.

Can you share more about the assets that Mountain Warehouse acquired in this deal in addition to the profitable stores and the brand? 

Mark Neale: We have bought the website EMS.com which we will be relaunching in due course. We want it to be one of the best outdoor online stores in the U.S.

Both Mountain Warehouse and EMS have strong private label brands. What else do these retailers have in common that makes the EMS acquisition a good fit?

Mark Neale: Our brand values and ethos are very similar which helps make the acquisition a great fit for us. We want everyone to enjoy the great outdoors and to help make it accessible to as many people as possible. Both businesses have really passionate, knowledgeable, long-serving team members who provide exceptional advice and service to their customers.

What’s different about them, and why are you aiming to preserve the EMS brand?

Mountain Warehouse Founder Mark Neale. Photo courtesy of Mountain Warehouse.

Mark Neale: EMS has such a strong heritage and reputation. We want to build on this DNA and bring EMS back to where it used to be. At its peak, EMS had more than 100 stores and we have a clear ambition to get to that kind of level over time. Mountain Warehouse has been trading in the U.S. for 10 years and we have a profitable business. But we are still small given the size of the market and with EMS we think we will reach more customers more quickly.

Mountain Warehouse reported strong financial results last year. So many outdoor retailers have struggled post-pandemic with a glut of inventory. What has Mountain Warehouse done particularly well or differently from other retailers?

Mark Neale: We always believed that physical retail would bounce back after the pandemic, so we continued to invest in our store portfolio, as well as developing, expanding and refining our product ranges based on customer needs. This provision of choice as well as our strong value-for-money focus has also resonated with today’s cost-conscious customer.

The EMS stores you acquired are profitable. What are they doing well and can Mountain Warehouse extract any learnings from those operations?

Mark Neale: We know the stores have a core loyal customer base within their communities – in most cases, they have been serving customers there for many years. This longevity, coupled with a great offer and unrivaled in-store expertise means we have a great place to be starting this new chapter in the EMS story.

Kate Robertson can be reached at [email protected].