Sportswear is growing into a fashion trend due to consumers growing desire for a healthy lifestyle. Some years back functional sportswear companies sold their clothing mostly via retailers, in recent years however these companies have integrated downstream in the supply chain. Now most functional sportswear brands operate their own stores: flagship or brand stores. Many researchers have investigated how companies use integration in the supply chainas a strategy. Few of these researchers have solely looked into functional sportswear companies and their unique products. The purpose of this thesis is therefore to examine why functional sportswear brands operate brand stores.

In this paper several researchers suggested reasons to why companies integrate downstream in the supply chain, which has been taken into account. Researchers such as Penaloza (1998), Pine and Gilmor (1998) and Thomas et. al (1999) have suggested that brand image, a relationship with the consumer and the chance of giving the consumer an experience are important advantages that comes with a brand store. Researchers have also discussed how the brand store generates sales through other channels. These advantages of brand stores as well as reasons for downstream integration have been used to critically examine why functional sportswear brands operate brand stores. The study shows that all examined sportswear brands use the brand store as a way of building image. The companies all find the chance of giving the consumer an experience as an important aspect of the brand store.