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Digitally Native Brands Adopt Offline Presence
By Dennis Kaiser
There’s a new class of retailers set to emerge in 2019 that are worth keeping an eye on. This new group of promising retailers typically trace their roots to online success, but many are now shifting to offline growth phases. That includes brands that are coming behind successful e-commerce retailers like Warby Parker, Untuckit and Casper.
The maturation process of these latest retail entrants reflects the growing trend toward incorporating a strong physical presence nationally, too. Shirt brand Untuckit has opened 50 stores, glasses retailer Warby Parker has hit nearly 100 locations, and mattress-maker Casper expects to open 200 locations by 2021.
The direct-to-consumer strategy is viewed by some as retail’s savior. That’s because these brands are helping to “reinvigorate” the shopping mall experience, 2PM’s Web Smith told CNBC. 2PM is a subscription platform that tracks retail start-ups and their growth.
Part of the shift to having a brick-and-mortar presence by e-commerce brands is owed to the fact that they’ve reached an online saturation point. Buying ads on Facebook or Google won’t escalate additional growth anymore, says Smith, so they are opting to open storefronts. That’s a trend expected to accelerate across the country in 2019. Already, digitally native brands have opened more than 600 stores in the U.S., according to a 2018 study by Green Street Advisors.
Among the brands expected to be among the next wave of digital-to-physical stores include:
Direct-to-consumer beauty brand Glossier
New York-based fitness brand Mirror
Rothy’s women’s shoes
High-end sneaker brand Koio
Women’s active-wear brand Outdoor Voices
Men’s apparel brand Rhone
Clear-teeth aligner health brand Candid
Kid’s apparel company Rockets of Awesome
Beverage brand Dirty Lemon.
* Pictured Warby Parker store in Los Angeles
You can hear more about the trends shaping the retail industry at Connect Retail West coming up on Jan. 22nd at The Resort at Pelican Hill. Here’s where to get more information and register to join us.
