The company Digital Brands Group is set to make its move into brick-and-mortar and open its first store next month.
The company, whose portfolio of digital-first lifestyle apparel brands includes Sundry and Bailey 44, plans to open its first retail store in the first half of April, at Simon Premium Outlet Mall in Allen, Texas. It plans to open 50 stores during the next several years.
Digital Brands Group (DBG) forecasts the store will generate more than $1.5M in annual revenue and over $500,000 in annual cash flow based on the historical performance of the location and excess Sundry inventory. (The company noted it received a significant amount of excess inventory with its Sundry acquisition, which was completed in late 2022).
DGB said it will use store to clear excess inventory at “meaningfully” higher margins than selling into the off-price channel.
“We are excited to begin the retail store phase of our growth strategy,” said Hil Davis, CEO of Digital Brands Group. “We believe the best performing retail brands will have three legs to their growth story: (1) wholesale, (2) e-commerce and (3) retail stores.”
