Dive Overview:
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Fashion retailer Revolve Group is shifting its e-commerce strategy offline and opening its first permanent brick-and-mortar store in Aspen, Colorado, the company announced on Friday.
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The debut storefront will stock apparel, footwear and accessories from both Revolve and Fwrd, as well as host in-store shopping events and trunk shows. The first floor will stock Revolve brands such as Lovers + Friends, Helsa and L’Academie, as well as pieces from other notable designers, according to the announcement. The second floor of the store will sell Fwrd’s luxury brands, including Acne Studios and Isabel Marant, as well as pre-owned bags and accessories.
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The permanent store comes after it opened pop-up stores for Revolve and Fwrd in the same space in December last year, which the company said “not only led to significant sales growth but also proved to be a great channel for building the brand and acquiring new customers.”
Dive Insights:
After building out its e-commerce model, Revolve Group joins other digital-first companies and DTC brands, including Figs, Ernesta and Princess Polly, in investing in brick-and-mortar stores.
Shoe brand Kizik also opened its first experiential pop-up store in New York in April, allowing customers to see its hands-free shoes. The brand said it plans to expand its wholesale locations to more than 500 and its retail locations to six this year. If the initial store openings are successful, Kizik said it plans to open nine more stores next year.
Revolve Group, which went public in 2019 at a valuation of about $1.3 billion, said in a statement that it has decided to open a permanent store to target Aspen’s affluent customer base after the success of its pop-up stores. The store openings are part of the company’s strategy to reach customers both online and offline, the company said.
“Aspen is the height of luxury and the perfect location for our first permanent store,” Revolve Group co-CEO and co-founder Michael Mente said in a statement. “We’re excited to offer our unique brand experience to new customers, combining the convenience of online shopping with the personalized service and engagement that only a brick-and-mortar store can provide.”
Revolve’s move to expand into brick-and-mortar stores comes as the company has struggled with sluggish sales recently. For the full fiscal year 2023, the company reported net sales of $1.1 billion, down 3% from the prior year. Net income also fell 52% from 2022 to $28.1 million.
These losses continued into early 2024. In its first-quarter earnings report, the company reported that net sales were down 3% year over year to $270.6 million. First-quarter net income was also down 23% year over year to $10.9 million.
This story originally appeared in Retail Dive. Subscribe to the free Retail Dive newsletter for daily news and insight.
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