DTC

DTC brands Figs and On expand their brick-and-mortar footprints

Both companies are pitching their new locations as opportunities to engage customers directly.
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Figs

· less than 3 min read

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Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.

Figs, the DTC apparel brand for healthcare professionals, last week opened its first brick-and-mortar location at the Century City Mall in Los Angeles, on the heels of a strong third quarter for the company.

It joins a growing number of DTC brands that are expanding their physical footprint, and while some are relying more on wholesale partners to get this done, others are opening their own retail outlets.

Firsthand experience: For Figs, driving revenue is just one of the new store’s goals. The company is also pitching the location as a “Community Hub,” where it hopes to cultivate a sense of community among its niche customer base with specialized programming and events.

Figs is planning to open a second Community Hub in Philadelphia in the first half of 2024. The choice of location is based on “a high density of healthcare professionals” in the area, a metric that will inform future brick-and-mortar expansions, according to the company.

Getting interactive: Meanwhile, Swiss DTC sportswear brand On is building out its retail presence with a similar set of goals. The company opened its fifth US retail store in late October, in Miami. Co-CEO Martin Hoffman noted that “our new store will help us create more intimate touchpoints with our athletes and fans in this city, taking their experience with our footwear and apparel to new levels.”

Those touchpoints include an 8-foot tall “Magic Wall” with drawers containing every size of the latest shoes, and a 3D re-creation of an actual alpine boulder. The footwear brand also said the space will be used for “experiences and events.”

Clinton Suh, On’s head of e-commerce in North America, told Retail Brew that On is focusing its retail expansion on “premium, fully branded environments” designed to serve as showcases for the product. He noted that On sees its branded brick-and-mortar presence as a way to drive both DTC and wholesale sales.

“We’re seeing increasing contributions from our physical retail stores, which have quadrupled in net sales year over year,” he wrote in an email. “Our store openings have a domino effect, driving heightened traffic to on.com and to our wholesale partners.”

Retail news that keeps industry pros in the know

Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.