Following the announcement from Digital Brands Group, Inc. that it opened its first brick-and-mortar store earlier this week, the company reported that it plans to open 50 retail stores over the next several years, funded by internal free cash flow.
DBG noted it is reviewing store locations and leases with several large-scale retail developers to drive brand awareness, lower cost customer acquisition, higher average basket size, and customer retention.
Based on store metrics in these developments, DBG forecasted the stores would generate over $1.5 million annually per store with positive store-level cash flow.
Based on its intention to open 50 stores over the next several years, DBG forecasted that the stores should generate over $75 million annually in revenue and meaningful store-level cash flow.
“We are excited to announce the retail store phase of our 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. We believe these stores will also drive revenue in our wholesale and e-commerce channels based on data from other brands who have opened retail stores,” said Hil Davis, CEO of Digital Brands Group, Inc.
Image courtesy Digital Brands Group, Inc.
