Retailers are pivoting back to brick-and-mortar formats after experiencing first-hand the difficulty of acquiring and retaining customers through an e-commerce setting. Experts told the Wall Street Journal that digital marketing fees began to pile higher and higher, and with this came the opportunity to rethink their direct-to-consumer approach.
“Despite widespread belief to the contrary, the push to DTC from wholesale appears to hurt, not help, overall company profitability,” said Simeon Siegel, BMO Capital Markets Analyst.
Warby Parker, Allbirds, Glossier, The RealReal, Casper, Peloton, Away, Wayfair and many more are among those who started out as a DTC channel and have now opened multiple brick-and-mortar stores.
Among these are other big-box retailers that have announced brick-and-mortar expansions, such as Burlington, Ross Stores and Barnes & Noble.