This Denim Seller Called Strauss Is Expanding to the US
Engelbert Strauss—not to be confused with denim giant Levi Strauss—will open its first store in the United States on Oct. 27.
The German workwear brand, a family-run company since 1948 based nearly six hours southwest of Berlin, makes the leap at a time when workwear is booming as a fashion statement and competitors like Carhartt are trending with style watchers. The brand commonly known as Strauss will open a direct-to-consumer store in Venice Beach, Calif. on Friday.
More from Sourcing Journal
Henning Strauss, the company’s CEO, said his ties to California make the project personal. He attended Pepperdine University in Malibu, and has since photographed Engelbert Strauss products in Los Angeles.
Strauss said he sees the expansion across the pond as a completely different offering than its business in Europe.
“We very much like to look at our newest venture as a startup situation, meaning… we are willing to evolve as a brand,” he said. “We are a legacy brand, in a way, but our product range over here should really be more contemporary and more forward-looking than some of the established companies that we find here in the United States.”
One of those established companies is Levi Strauss, which, by revenue, is nearly 20 times the size of Engelbert Strauss. Levi’s has multiple stores in the Los Angeles area, which could prove confusing for consumers.
Engelbert Strauss and Levi Strauss each have a red-and-white logo—and both brands sell denim products, though the CEO said that denim isn’t a major foundation of the German brand’s identity, nor is it a major selling point for European consumers.
“I wouldn’t consider ourselves a denim brand. It really stems from workwear in Europe not being very denim-driven… whereas obviously [in the United States], denim is a key when it comes to workwear,” Strauss said. “We have a very small selection [of denim] in [our new] store. I mean, let’s see—that may grow over time, but even when looking at phase two, phase three in the U.S., I would not expect us to very much move into denim, because it is such a big offering over here, and it’s really not so much part of our brand.”
The chief executive told Sourcing Journal that Engelbert Strauss has a legally binding agreement with Levi Strauss related to the use of the name “Strauss” on garments. That agreement, signed in 2019, encompasses Engelbert Strauss’ business globally and in perpetuity.
Strauss said the two businesses continue to operate separately and without conflict.
“We have no interest in being confused with someone else. We have our own identity, and we are quite proud of what we bring to the table,” Strauss said.
A Levi Strauss spokesperson declined to comment on the agreement and its terms. The brand has a reputation of being a “trademark bully,” and has previously filed lawsuits against other denim brands, like Coperni and Hammies.
As of now, Strauss said, zero percent of Engelbert Strauss’ e-commerce revenue comes from the United States. Engelbert Strauss primarily operates direct-to-consumer, and Strauss said the brand does not have plans to work with wholesale retailers in the United States at the moment.
Engelbert Strauss’ best-selling classic workwear pants will be the highlight of the new store, taking up 60 percent of the real estate. Strauss expects jackets to do well as Engelbert Strauss expands into Northern states, where the weather is more comparable to Germany.
Strauss said he understands that the U.S. market will likely deviate from European trends, and sees that as an opportunity to expand Engelbert Strauss’ product offerings.
But despite that, he said the brand will continue to remain true to its beginnings.
“We very much make a strong effort to stick with our workwear DNA, which means fashion’s nice, the look is cool, but the functionality of the piece of building is still number one,” Strauss said. “Our audience is very much [of] the expectation that the product does not fall apart, so durability is key.”
