Digital Brands Group, Inc. (DBG) has reportedly signed a Letter of Intent to open its first retail store in March 2024. The company that boasts “a curated collection of luxury lifestyle, digital-first brands” is forecasting the store to generate over $1.5 million in annual revenue and over $500,000 in annual cash flow based on the historical metrics and performance of the store location, and excess Sundry inventory prior to the acquisition.
DBG said in a release it will use the store to clear excess inventory at a meaningfully higher margin than selling into the off-price channel. Importantly, DBG said received a significant amount of excess inventory with its Sundry acquisition. Therefore, they expect there will be no additional costs to make these excess units, as they have already been paid for and are at the DBG warehouse.
“We are excited to begin the retail store phase of growth strategy. We believe the best performing retail brands will have three legs to their growth story: (1) wholesale, (2) e-commerce and (3) retail stores,” said Hil Davis, CEO, Digital Brands Group. “We started with an outlet location due to the finished goods inventory that are already paid for and sitting at our warehouse, as well as the historical metrics and performance of this store,”
