DEATH OF PUREPLAY RETAIL

INTELLIGENCE REPORT DEATH OF PUREPLAY RETAIL CUSTOMER ACQUISITION

New Players Have Caught On Quickly The most successful evolved retailers have been quick to recognize the value of a brick-and-mortar presence, opening stores soon after being founded and also expanding rapidly. Learning from these frontrunners, which include Warby Parker and Bonobos, even newer brands such as Frank and Oak and Yogibo have followed suit, opening stores at a rapid pace just a year after their founding. While a cautious, test-and-learn strategy is still the norm, with most brands opening just one to two stores per year, the benefits of retail scale may prompt e-tailers to consider more aggressive expansion plans moving forward.

Death of Pureplay Retail: Years Before First Store vs. Stores Opened Per Year October 2015, n=19 Evolved Pureplay Retailers

23

Slow Adoption, Rapid Expansion

Rapid Adoption, Rapid Expansion

Athleta

8

Warby Parker

6

Stores Opened Per Year

Bonobos

Yogibo

Indochino

4

Frank & Oak

Years Before First Store Opening

18

15

12

9

6

3

0

2

Blue Nile

Nasty Gal

0

J. Hilburn

Slow Adoption, Cautious Expansion

Rapid Adoption, Cautious Expansion

Source: L2 Intelligence Report: Death of Pureplay Retail, January 2016.

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January 12, 2016