The evo store carries a large selection of snow gear even in summer. Photo by The Daily.
I recently spent several hours with evo owner Bryce Phillips in the company’s home base of Seattle, seeing the industry entrepreneur’s latest project: a new, 120,000-square-foot office building on its retail campus.
Over more than a decade, evo’s sister real estate development company has been slowly buying up property and buildings in a one-block radius around the existing site, which has long included a showcase evo store; two adjacent, high-profile restaurants; and the evo All Together Skatepark.
By buying up several more properties over the years, Bryce’s goal of creating a larger campus of active/outdoor business that attract and serve like-minded customers has become a reality.
“The whole idea is to bring in businesses and customers that are complementary so everybody wins,” he said.
The office building, which is currently under construction and cost over $100 million to build, will be the new headquarters for Brooks, the running shoe company, which is scheduled to move in in October. Black Diamond has signed a lease for one of the two retail spots on the ground floor of the five-story, modern, light-filled office building. Evo’s real estate arm is looking for another brand in the active/outdoor sector to fill the other retail space in the new building.
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Given the move to remote work environments, it’s somewhat surprising that a new office building is a key part of the plan.
“We wouldn’t have been able to do it if we hadn’t pre-leased all of it to Brooks,” Bryce said. “And Brooks is owned by Berkshire Hathaway, which gave us and the banks confidence it would work. Where people are getting in trouble is if they are building offices on spec.”
The block also now includes a Bouldering Project gym that contains extensive climbing walls, a weight training and workout space, and yoga studio; and a 5,000 square-foot standalone evo building dedicated solely to ski, snowboard, and mountain bike rentals and repairs.
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The company has hired nine muralists from around the world to create art on several of the building structures to tie the block all together, and pedestrian access will be opened up through the interior of the block once the office building is complete.
“The best thing will be when the whole block is connected, it will feel like one experience,” Bryce said.
Inside the popular climbing gym, Bouldering Project. Photo by The Daily.
And, the long range plan calls for one more ambitious building similar in scale to the new Brooks space, perhaps a hotel or another office building, Bryce said.
Walking around the Fremont neighborhood of Seattle with Bryce, where Campus Seattle is located, it becomes clear that many of the businesses that are part of the evo developments are owned by people he already had relationships with, which makes the expansion feel organic. He is also a partner in some of the businesses, like the Joule restaurant adjacent to the evo store in Seattle.
“It’s all about relationships,” Bryce said. “Sometimes working with friends can be hard but it’s the only way I have done it.”
Two restaurants, including Joule, have been a part of evo’s Seattle campus for years. The evo store is designed so you can hear restaurant sounds in the store. “We want to hear the sounds, to hear the different pieces (of the campus) – it makes it far more dynamic,” evo owner Bryce Phillips said. Photo by The Daily.
Bryce started evo in 2001 in his garage in Seattle selling used ski and snowboard gear. It’s now a major player in ski, snowboard, and mountain bike retail, both online and with showcase retail locations in Seattle, Portland, Salt Lake, Denver, Whistler, and Japan.
The company’s global reach continues to grow with the most recent major move in Japan when it acquired Rhythm Japan in 2022, which operates nine store locations in three mountain regions, including a large rental business.
Snack time during a summer camp for kids at evo’s All Together Skatepark. Photo by The Daily.
Evo has expanded into the hospitality business as well, with its first hotel opening in Salt Lake City in 2022. Next up is an evo hotel at a new location in Tahoe City, California, and another in Hakuba, Japan – both are expected to open this winter. The company also owns a backcountry lodge in British Columbia.
The new Campus Tahoe City will also include a restaurant and a small rental operation, Bryce said.
The other arm of the evo business that connects the different pieces of the business: evoTrip, an adventure travel business that includes day trips, courses and clinics, and guided tours to destinations in Japan, New Zealand, Japan, Whistler and more.
Diversification Helps Offset North American Retail Softness
The diversification of the evo business is becoming increasingly important to riding out highs and lows. As many other industry retailers have experienced, the past two years has been tough for evo retail in North America. The company has had to cut staff and expenses as a result, Bryce said.
The company’s total retail business (online and stores) is 75% hardgoods, which meant business boomed during the pandemic, and has since slowed down because of inventory and other issues in the market.
Evo has moved hardgoods front and center at its stores to showcase what evo specializes in. Photo by the Daily.
“North American retail remains a challenge,” Bryce said. “We’ve had two years that have been tricky for sure. But we’re thankful that we’ve diversified and have the beginnings of a global business as far as locations, but also diversified the lines of businesses by adding travel and hospitality.”
The Rhythm business in Japan has been performing particularly well, which has helped offset weakness closer to home.
Considering Bryce started the business in his garage, evo has grown exponentially in the past 23 years. The company’s revenue, including retail, travel, and hospitality, has risen above $200 million.
Apparel at the evo Seattle store. Photo by The Daily.
But Bryce wasn’t celebrating that number when we talked.
“There’s revenue and there’s profit,” he said. “Retail in North America has been tough, and that’s compressed margins, so we’ve had to manage costs. We’d like to get back to where we want to be profit-wise.”
Next up: over time, the company will look to add more campuses that tie retail, hospitality, and travel together in key regions around the world.
