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So how are these physical retail store, brand building expeditions actually working out for stores? After all, one can't argue with results (not entirely true actually). Well, as we noted earlier, for Warby Parker, less than 10% of all retail sales are attributable to physical store sales. So, one could suggest, it's not going well. But, one would be wrong to do so because it's still very early and more importantly, because the measurable returns on these physical locations are complicated to calculate. As an example, let's jump back to Bonobos (only because they have employed this strategy for a...

So we've discussed the “revival” of the physical retail store and why online first, online only (well at least at first online only) companies are expanding from the cloud to the curb. Furthermore, we've highlighted some of the key differences that separate these modern physical stores from the traditional ones, ones that have put many large retailers in precarious positions. Among those differences: 1) shared, centralized inventory which leads to leanly stocked stores that function more like dressing rooms and brand introduction centers 2) features including layout/design, inventory management, and staffing needs reflect the high degree of analysis performed by...

Just last week, we discussed the seemingly, at least upon first glance, return of the physical retail store, as evidenced by the physical store expansion efforts of online first, formerly online only, retailers like Bonobos, Warby Parker, and Birchbox. And though the economics of physical stores are less attractive than those of online stores, a point that these companies have publicly admitted, they are also necessary for these companies to grow. Furthermore, these companies' physical retail stores are quite different than traditional big box retail stores, or even than many boutiques out there today. And these differences help make the...

As we wrote earlier, there is vigorous debate about the long term prospects of physical retail establishments. Will they be around in 10 years or won't they? As we said before, we think so. In fact, though online retail sales have experienced tremendous growth in recent years, and will continue to for years to come, even the rosiest of predictions call for only 11% of all retail sales to be attributable to the web. And as for today? Well today, though 40% of retail sales are influenced by online browsing, 75% of these same sales occur in store, within 15...