Digitally native brands currently operate about 1,700 physical stores, according to a new analysis by Kevin Campos, a principal at venture capital firm Fifth Wall, and Thinknum Alternative Data.
And these digital brands, including such names as Allbirds and Casper, are expected to open another 850 stores by 2023, according to JLL Research. Stores are not a marketing tool or a sideshow—they are becoming a real part of these businesses,” Campos told Forbes. “People are tracking store closures so closely, but not store openings.”
According to Campos, online retailers that have been most aggressive in growing a brick-and-mortar presence are:
New York City
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Tesla's San Francisco flagship occupies 65,000 square feet
Williamsburg, Brooklyn, N.Y.
The Dutch company recently opened its sixth store in New York City, a 5,000-square-foot unit at Hudson Yards. It also signed a deal to operate 1,000-square-foot concessions in Nordstrom stores in Vancouver, British Columbia; Toronto; Torrance, Calif., and Oakbrook, Ill. Suitsupply will also be available at Nordstrom online.
Eyewear juggernaut Warby Parker recently opened its second Minneapolis store, at Galleria Edina.
SoHo, New York City
The Rhode Island-based charm brand has a presence in most major U.S. markets and is growing overseas as well.
New York City
The popular jewelry brand expands outside of its permanent store network to capture more holiday sales each year. For example, the retailer opened a pop-up store at the La Centerra shopping center, in Katy, Texas, to showcase its Winter 2019 collection and to alleviate some of the lines and wait times from its three permanent stores in the Houston area.
While Peloton uses the Internet to connect to its existing customers, it is relying on physical stores to connect to its future clientele, notes Yahoo Finance. “Retail is enormously strategic for us,” Peloton President William Lynch told Yahoo Finance. “We are huge believers in retail.”
Covent Garden, London
The casual apparel brand is growing outside of the U.S., with two new stores in London, one at Westfield London and one in the Covent Garden district.
Derby Street Shops, Hingham, Mass.
Walmart acquired the men's casual apparel brand in 2017 for $310 million. In March, the company began testing womenswear in some of its stores.
West Hollywood, Calif.
The Canadian men's apparel brand recently launched an online business in Australia, its first market outside North America, and plans to open brick-and-mortar locations in that country as well.
By Brannon Boswell