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Corporate-Owned Stores Are Reshaping the Industry
Corporate-Owned Stores Are Reshaping the Industry 1440 428 ASG
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Retail is undergoing a major reset. Brands that once grew quickly through franchising are now rethinking their approach. The industry is shifting toward corporate ownership, omnichannel execution, and sustainability as strategic imperatives. These are not trends. They are the new rules for brands that want to stay relevant, competitive, and profitable.

Corporate-Owned Stores: Why Brands Are Reclaiming the Front Line

Franchising helped many brands grow rapidly. It reduced capital requirements and outsourced day-to-day operations to local owners. But with that speed came compromise.

Franchisees often operate with different priorities. That means inconsistencies in customer experience, store execution, and even brand representation. In today’s landscape, where customers expect uniformity across every touchpoint, inconsistency is a liability.

This is why many brands are de-franchising. They are buying back stores and shifting to corporate ownership to regain control of brand standards, store layouts, staffing, and customer service.

Take Figs, for example. The brand began with a franchise model but shifted to owning its locations outright. This gave them the ability to implement sustainability standards across all stores and deliver a more consistent customer experience.

Of course, this control comes at a cost. Corporate-owned stores require more infrastructure, more capital, and more operational oversight. But the payoff is clear: better brand alignment, tighter execution, and stronger long-term returns.

Omnichannel Is No Longer a Buzzword. It’s the Baseline.

Today’s shoppers do not see channels. They just expect everything to work together.

That means buy online and pick up in store, curbside pickup, in-store returns for online orders, and the ability to see real-time inventory no matter where they shop.

Retailers like Lululemon and Best Buy have built their success on this kind of frictionless integration. Fashion Nova uses real-time inventory systems that sync online and offline availability to avoid customer disappointment and streamline operations.

Brands that succeed here understand one thing: omnichannel is not just about convenience. It is about loyalty. Customers return to brands that make it easy to switch between browsing online and buying in store or the other way around.

Personalization also plays a key role. When brands connect digital and in-store data, they can tailor offers, product recommendations, and even in-store interactions to individual preferences.

Sustainability: No Longer Optional

Environmental and social responsibility is becoming a dealbreaker for modern consumers, especially Millennials and Gen Z. Brands that do not have a clear sustainability strategy risk falling behind.

Today’s leading retailers are embedding sustainability into every layer of their business.

  • Supply Chain Transparency: Brands like Everlane give customers a detailed look at the cost and sourcing of each product, building trust and setting a new standard for accountability.
  • Carbon Reduction: Companies like Reformation use recycled materials and optimized logistics to minimize environmental impact, attracting customers who prioritize eco-conscious decisions.
  • Circular Economy: Patagonia’s Worn Wear program lets customers trade in old gear for store credit. It is smart business that also reduces waste and keeps products in circulation.

Sustainability also plays out in physical store design. From energy-efficient lighting to reclaimed materials and solar-powered locations, eco-forward operations are becoming a visual and operational part of the brand story.

On the social front, brands are stepping up. Whether supporting labor rights, promoting diversity, or taking a public stand on key issues, today’s customers expect businesses to show up for more than just profit.

The New Playbook: Experience, Convenience, and Responsibility

Retail success now hinges on three pillars:

  1. Brand-Controlled Execution: Taking ownership of your physical presence allows for more consistent, premium experiences.
  2. Omnichannel Infrastructure: Integrating digital and physical operations is no longer a nice-to-have. It is a baseline requirement.
  3. Sustainable Growth: Whether it is reducing emissions or supporting social causes, responsibility drives relevance.

Retailers who commit to these strategies are setting themselves up for long-term success. They are building loyalty in a values-driven, experience-first market.

DTC 2.0: Why Direct-to-Consumer Brands Are Going Physical
DTC 2.0: Why Direct-to-Consumer Brands Are Going Physical 1440 428 ASG
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The direct-to-consumer model once promised a cleaner path to profit. Cut out the middlemen, sell online, and watch your margins soar. But reality has caught up to the promise.

Today, DTC brands are facing rising customer acquisition costs, intense competition, and increasingly complex fulfillment logistics. The brands that are thriving are not relying on digital alone. They are showing up physically, in stores, in pop-ups, and in the everyday lives of their customers.

This is DTC 2.0. And it is hybrid by design.

The New Challenges of DTC

In the early days, brands could rely on Facebook and Google ads to reach new customers cheaply and at scale. But those days are over. According to Shopify, the cost of customer acquisition has risen more than 60 percent since 2015.

At the same time, the DTC space is saturated. With thousands of lookalike brands vying for the same audience, it is harder than ever to stand out. Simply having a good product is not enough. Brands need a strong narrative, a differentiated experience, and a loyal community.

And there is the operational side. Shipping, warehousing, and handling returns all fall on the brand. These are challenges traditional wholesale partners used to absorb. If your logistics fall short, customers notice. Fast.

The Pivot to Physical Retail

The irony? Many of the most digitally native brands are now going physical. But they are doing it their way—low risk, high touch, and data driven.

Sub-leasing Smaller Storefronts

Some DTC brands are partnering with landlords to sublease sections of existing stores. It is a way to gain high-traffic exposure without long-term commitments or massive overhead. Brands like Brilliant Earth are using showroom-style spaces to connect with customers in urban markets.

Pop-Up Shops

Pop-ups let brands test cities, launch products, and create buzz. Gymshark, for example, has used short-term retail activations to turn online loyalty into real-world community. These moments often feel more like events than stores, and that is the point.

 

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Shop-in-Shop Models

Partnering with an established retailer can be a smart move. Our Place and Cuyana have placed their products inside Nordstrom to reach new audiences while maintaining control over how their brand is presented. It is physical retail with built-in foot traffic and credibility.

These formats give DTC brands the ability to meet customers face to face, which is critical for categories like beauty, apparel, and home goods. They also provide the chance to upsell, build loyalty, and turn a one-time buyer into a lifelong fan.

Data-Driven Experience Design

Digital brands know how to track and personalize online. Now they are bringing that same mindset into the physical world.

Personalization

By connecting in-store behavior with online activity, brands can deliver tailored follow-ups. Did someone try on a jacket in store? Send them an email with a similar product, styling tips, or an incentive to complete the purchase.

Heat Maps and Layout Optimization

Retailers are using tools like heat mapping to track how customers move through stores. This helps optimize store layouts, product placements, and even staffing schedules.

Smarter Inventory Management

By syncing sales and behavior data across channels, DTC brands can better forecast demand. If a product is underperforming online but flying off shelves in store, inventory and marketing strategies can shift accordingly.

Loyalty Programs

Modern loyalty platforms tie together digital and physical purchases, offering personalized rewards based on real behavior. The bonus? Brands collect more first-party data, which is essential as third-party tracking fades out.

Final Thought: The Future is Hybrid

DTC is not dying. It is evolving.

The most successful DTC brands are building real communities, blending physical and digital touchpoints, and using data to create smarter, more human customer experiences.

They are not chasing a single channel. They are designing for the whole journey.

Retail Isn’t Dying. It’s Digitally Reinventing Itself
Retail Isn’t Dying. It’s Digitally Reinventing Itself 1440 428 ASG
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The rise of eCommerce has reshaped the foundation of retail. What started as a convenient alternative to traditional shopping is now a dominant force, driving nearly 16 percent of all U.S. retail sales as of mid 2024. But the story isn’t just about what’s happening online. The bigger shift is how this digital disruption is transforming the role of physical retail spaces.

Brands that once existed purely online are opening storefronts. Malls are becoming fulfillment hubs. Stores are no longer just about selling. They’re about storytelling, logistics, and experience.

Digital First, Physical Second

Retailers like Vuori and Mejuri began entirely online, building loyal customer bases and scalable operations through eCommerce. As their brands matured, they didn’t abandon digital but instead added brick-and-mortar locations that function more like experiential showrooms. These spaces help customers interact with the product in real life, but the final transaction might still happen online.

That is the future of physical retail: not as a competitor to eCommerce, but as a powerful complement.

AR and VR Are Not the Future. They’re Already Here

Augmented reality (AR) and virtual reality (VR) are turning the shopping journey into something immersive and interactive. Whether it’s IKEA’s app that lets you place furniture in your living room or Fenty Beauty’s virtual try-on tools, AR is helping customers make smarter choices without ever stepping into a store.

And in store? AR is being used to enhance discovery. Scan a shelf and learn more about a product, view a how-to video, or unlock a limited-time offer—all from your phone. These features don’t just make shopping more fun, they make it more effective.

VR, while less widespread, is on the rise too. Retailers are testing full 3D virtual stores where customers browse digital aisles from their homes. These spaces are not just futuristic. They are the beginning of a new hybrid experience where shopping happens anywhere.

What COVID-19 Made Permanent

The pandemic did not invent digital retail, but it did fast track its adoption. According to McKinsey, the pandemic accelerated eCommerce by five years in a matter of months. Contactless pickup, curbside delivery, and mobile-first shopping experiences became the new baseline.

Post pandemic, many consumers have kept those habits. In-person retail is still relevant, but only when it offers something online can’t. That is why experiential retail is on the rise. Think of Crumbl Cookies and its open-kitchen design that encourages customers to watch the baking process. Or athletic brands creating in-store fitness classes and gear demos.

Retail spaces that generate shareable, memorable moments are winning foot traffic and loyalty.

Real Estate is Getting Smarter and Smaller

Retailers are also localizing operations. Instead of relying on massive regional warehouses, they’re building micro-distribution hubs closer to customers. Physical stores are being reimagined as both fulfillment centers and experience zones.

This has also led to more flexible retail real estate strategies. Brands are exploring short-term leases, pop-up shops, and modular store layouts that adapt to demand. The modern storefront isn’t static. It evolves with the consumer.

The Takeaway: Reinvention, Not Retreat

Brick-and-mortar is not disappearing. It is becoming more agile, more interactive, and more digitally connected. Retailers that embrace omnichannel integration, invest in immersive technology, and rethink their physical footprint are finding new growth opportunities in a complex landscape.

eCommerce didn’t kill physical retail. It changed the rules. And the brands that are playing to win are using every tool—digital and physical—to connect with consumers.

Need help evolving your store strategy?

Asset Strategies Group helps brands find, design, build, and manage retail spaces that integrate digital infrastructure with physical execution. From site selection and leasing to immersive store design and omnichannel fulfillment, we provide end-to-end support with data-backed insights through our ASGedge platform.

Schedule a strategy session

Let’s build smarter retail spaces together.

Malls Are Not Dead: They’re Just Getting Smarter
Malls Are Not Dead: They’re Just Getting Smarter 1440 428 ASG
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For decades, malls have been cornerstones of retail real estate. While some headlines have painted them as relics of a bygone era, the truth is more nuanced. The mall is evolving, morphing into a dynamic, multi-purpose destination that meets the demands of the modern consumer.

At the forefront of this transformation are developers like Simon Property Group, Brookfield Properties, and Unibail Rodamco Westfield. These firms are redefining what a mall is and, more importantly, what it can be.

From Shopping Center to Lifestyle Destination

Simon Property Group has over 200 malls under its belt. In recent years, the company has invested heavily in turning these properties into lifestyle hubs. Think residential apartments above retail, entertainment venues next to restaurants, and public gathering spaces built into former parking lots. It is no longer just about shopping. It is about living, working, dining, and playing in one cohesive environment.

Brookfield Properties is using a similar strategy, especially when it comes to repurposing space left by department store closures. Vacant anchor stores are becoming gyms, co-working spaces, entertainment venues, and even fulfillment centers for digital native brands entering physical retail.

Unibail Rodamco Westfield is adding another layer: sustainability. Many of their projects now include green building practices and net zero energy goals. As consumers grow more eco-conscious, this integration of environmental responsibility into the retail experience is becoming a powerful differentiator.

Why the Traditional Mall Model Is Breaking

Consumer expectations have shifted. Shoppers today, especially Millennials and Gen Z, are not just looking to buy products. They want experiences. They want places where they can connect, discover, and enjoy themselves.

Add to that the rise of eCommerce. As of mid 2024, digital sales account for roughly 16 percent of total retail in the U.S., and that number is climbing. It is clear that malls can no longer rely on transactional foot traffic alone.

Flexible work arrangements have also changed visitation patterns. Weekday traffic has declined. Malls now need strategies to activate weekends and give people reasons to visit during non-peak hours.

And then there is the anchor tenant crisis. The closures of Macy’s, JCPenney, and Sears have left massive holes in mall ecosystems. These large format vacancies are being reimagined, but it requires capital and creativity to make the transitions successful.

What the New Mall Looks Like

The future of the mall is mixed use, entertainment driven, and hyper local.

Mixed use: Malls are incorporating office space, apartments, hotels, and public amenities into their footprint. Oakbrook Center in Illinois is a strong example. What used to be a traditional shopping complex is now a thriving environment where people work upstairs and eat downstairs.

Entertainment first: Whether it’s the American Dream’s indoor ski slope or smaller malls adding immersive gaming and VR experiences, entertainment is no longer optional. It keeps people in the space longer, which increases the chances they will shop or dine.

Dining reimagined: Food courts are becoming food halls. Malls are partnering with local chefs and niche culinary concepts to offer high quality, Instagram worthy experiences that drive foot traffic and return visits.

Digital integration: Smart malls now use mobile apps to help customers find parking, navigate stores, and access promotions. AR tools, real-time foot traffic analytics, and seamless online to offline integrations are enhancing the shopper journey and supporting better business decisions.

Why This Matters for Retail Brands

Malls may look different, but they remain a powerful channel. In the right setting, they create opportunities for brand discovery, deeper engagement, and multi-sensory storytelling. A consumer might first encounter your brand at a pop-up event, experience your product in a digitally enabled environment, and later become a loyal online customer.

For brands, this environment offers the best of both worlds. You get physical visibility with digital support. You reach shoppers when they’re relaxed and engaged, not just clicking through screens.

Final Takeaway

Malls are not dying. They are being reengineered to match today’s lifestyles. The most successful developers are those who see malls not just as places to shop, but as places to live, work, and connect.

The new mall model is built on experience, convenience, and community. Retailers who want to stay ahead should view malls as a strategic channel, not a fading relic.

Wholesale Without the Risk: How Modern Brands Are Scaling Smarter
Wholesale Without the Risk: How Modern Brands Are Scaling Smarter 1440 428 ASG
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For today’s retail brands, wholesale can either be a growth catalyst or a fast track to brand dilution. When done strategically, wholesale expands reach, drives trial, and increases sales. But when mismanaged, it undercuts brand equity, erodes margins, and disconnects you from your customer.

In a world where direct-to-consumer (DTC) costs are rising and digital channels are saturated, more brands are reconsidering wholesale. The smartest ones are rewriting the rules.

Why Wholesale Still Works

Wholesale gives brands access to scale without the overhead. It taps into third-party retailers’ infrastructure, foot traffic, and loyal customer bases. For emerging brands, it can open the door to markets that would be too costly to enter alone. For established players, it can provide reach into new geographies and shopper segments.

But reach comes at a cost. Retailers expect significant discounts to maintain their own markups. That hits brands hard, especially those already operating on slim margins. Even more concerning is the loss of control. In third-party environments, you cannot always dictate pricing, displays, or brand messaging. And that matters—especially if your brand is built on exclusivity, storytelling, or customer intimacy.

Balancing Wholesale and DTC

The rise of DTC created a new standard for brand control. Full ownership of the customer journey, direct access to data, and higher margins made it the preferred model for a decade. But DTC growth has slowed. Rising acquisition costs, privacy changes, and digital fatigue have made scaling DTC expensive.

Enter: hybrid retail. Brands like Gymshark, Fenty Beauty, and Skims have shown that wholesale and DTC are not enemies. They’re complementary. These brands built direct relationships with customers first, then expanded into wholesale through highly selective partnerships. Skims aligned with luxury retailers like Saks and Selfridges. Gymshark went into stores only after creating a strong digital identity. In both cases, wholesale was not a pivot—it was a growth layer.

Modern Economics of Wholesale

Unlike traditional wholesale-first brands, DTC-native companies can be selective. They hold the power to dictate terms, control brand standards, and ensure channel harmony. Wholesale becomes a way to offset digital marketing costs and reach customers in real life—without sacrificing core brand values.

It also supports omnichannel behaviors. Customers want to discover a product in-store and reorder online. Or browse online and buy in-store. Brands that create seamless experiences across both win long-term.

Case Studies: Getting It Right

Crumbl Cookies used wholesale to extend its reach into premium grocery environments, while keeping limited drops online to maintain hype and exclusivity. The brand ensured its DTC and wholesale strategies worked together—not in competition.

Skims maintained luxury positioning by partnering only with select retailers that could uphold its brand standards. That allowed the brand to expand without losing control of its image.

YETI partnered with retailers like Dick’s Sporting Goods and REI to match its rugged, outdoor image. Every placement reinforced brand values.

Chewy, still a primarily DTC brand, has tested physical retail with PetSmart and Petco while maintaining strict control over how products appear in-store. This measured approach allowed it to test without weakening its identity.

The Takeaway

Wholesale is not a shortcut. It is a strategic growth lever that works best when layered on top of a strong DTC foundation. Brands that succeed use data to pick partners, maintain pricing and presentation control, and view wholesale as part of a long-term omnichannel plan.

The goal isn’t just reach. It’s profitable, aligned, brand-enhancing reach.

Want help scaling smarter?

ASG helps brands find, design, build, and manage retail locations with precision. We handle everything from site selection and lease negotiation to store design and construction management—powered by ASGedge, our real estate intelligence platform.

Let’s build smarter together: Schedule a strategy session

Smart CEOs Are Rebuilding Supply Chains for Resilience
Smart CEOs Are Rebuilding Supply Chains for Resilience 1440 428 ASG
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For decades, “just-in-time” was the gospel of global supply chains.

It was efficient. It was lean. It kept costs low and inventory tight — a dream for margin-hungry CFOs and operations leaders alike. But in 2025, with tariffs soaring, logistics in flux, and geopolitical uncertainty lurking around every corner, the dream has become a liability.

Today, the smartest CEOs in retail are embracing a different mantra: Supply chain resilience over efficiency.

A Crisis Decades in the Making

The cracks in just-in-time logistics didn’t appear overnight. COVID-19 exposed them in brutal fashion. One delay in Vietnam or a port shutdown in Shanghai, and shelves in Chicago sat empty for weeks. Many retailers had no slack in the system — no buffer stock, no backup suppliers, no alternative freight routes. The impact was severe and immediate.

Some adapted. They diversified. They stockpiled. They invested in visibility and redundancy. But just as supply chains were beginning to settle, another blow arrived: a new wave of tariffs, not only on China but across Southeast Asia — Vietnam, Bangladesh, Cambodia, and others. With few low-cost countries left untouched, the old fallback strategy of “move production somewhere else” no longer works.

As one industry analyst recently put it,

“Retailers just learned there’s no place to hide.”

From Fragile to Flexible: The New Supply Chain Playbook

Smart CEOs aren’t waiting for stability to return. They’re building systems that don’t require it.
They’re making resilient supply chain design a core business function.

That means rethinking everything — from how and where goods are produced, to how they’re moved, stored, and sold.

Diversified sourcing is no longer optional. Retailers are spreading production across multiple countries — not just China and “+1,” but to three or four regional partners. Nearshoring, especially to Latin America, is accelerating. Why? Faster lead times, fewer surprises, and in many cases, duty-free access under trade agreements like CAFTA-DR.

At the same time, companies are reintroducing a concept they once abandoned: inventory buffers. After years of minimizing stock to cut carrying costs, retailers are now holding more — not recklessly, but strategically. They’ve learned that the cost of not having product can be far greater than the cost of carrying it.

And underneath it all, there’s a new foundation being laid: technology.
Supply chain technology trends like AI and predictive analytics are giving leaders real-time visibility into disruptions before they become disasters. Automated systems are helping balance inventory across networks. Some retailers have even stood up “supply chain war rooms” — cross-functional teams that monitor logistics, trade policy, and supplier health every day.

Resilience Isn’t Cheap — But It Pays

Of course, building supply chain resilience isn’t free.

It means more complexity. More relationships to manage. More capital tied up in stock. But after losing billions in missed sales, last-minute freight premiums, and brand damage over the past five years, most CEOs see the investment as insurance — not a luxury.

More importantly, resilience isn’t just about protection. It’s about positioning.

Retailers who’ve built adaptive supply chains are faster to market. They’re better at absorbing cost shocks. They can respond to demand swings with agility, not panic. And in a world where consumers expect instant availability, those capabilities translate directly to loyalty, share, and margin.

The Role of the CEO: From Efficiency Leader to Risk Architect

This shift requires a mindset change at the top.

Efficiency will always matter. But in a world defined by volatility, efficiency without resilience is fragility in disguise. CEOs must now think like architects of supply chain risk management. They need to empower their supply chain leaders not just to deliver products faster and cheaper, but to make the system stronger, smarter, and more shockproof.

That means funding the right tech. Supporting the right sourcing moves. And building a culture that embraces flexibility, not just optimization.

Because the question isn’t whether the next disruption will come.

It’s whether your supply chain — and your brand — will be ready when it does.

Price War: How to Maintain Margin and Brand Equity in a Tariff Economy
Price War: How to Maintain Margin and Brand Equity in a Tariff Economy 1440 428 ASG
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Premium brands used to live in a different world. They spoke to a more discerning customer. They stood for quality, design, and identity. They didn’t chase the lowest price or enter race-to-the-bottom promotions. That insulation is fading—fast.

Today, premium brands are under pressure from both sides. A volatile tariff economy is pushing sourcing costs higher, sometimes by 30 to 45 percent overnight. At the same time, shoppers—especially upper-middle income ones—are becoming more value-conscious. That doesn’t mean they’re hunting for coupons. It means they’re looking harder at what justifies the price. What once felt aspirational now needs to feel earned. This is where value perception in retail becomes essential.

And this is where many premium brands find themselves stuck. Raise prices, and you risk alienating loyal customers. Hold the line, and you absorb costs that erode contribution margin. Promote aggressively, and you weaken the brand you’ve spent years building. None of those are great options. But they’re not the only ones.

The brands navigating this moment successfully are doing it with discipline—not by compromising who they are, but by tightening the link between value and price. They’re asking the right questions: What drives willingness to pay in our category? What can we deliver that lower-cost competitors can’t touch? What’s a true value-add, not just a margin drag?

The answer isn’t always about cost. In fact, it rarely is.

It’s about brand. And brand, at the premium level, is a compound asset. It’s built through consistency, creativity, and credibility—especially during hard times. In a tariff economy, reinforcing that identity becomes more than positioning—it becomes protection.

maintain brand equity

When Exclusivity Meets Economics

Premium brands have always walked a fine line. They justify their prices through quality, storytelling, aspiration, and design. But in a tariff economy, where duties on core sourcing countries like Vietnam, Bangladesh, and China are hitting 30–45%, many of these same brands are being forced to reconsider their pricing structures—or eat into already narrow margins.

Take RH (Restoration Hardware), for example. Ahead of the most recent tariff rollout, RH made an aggressive move: pre-purchasing large volumes of inventory to lock in costs and avoid tariff exposure. It was a bold—and costly—bet. But for a brand that targets high-net-worth customers and thrives on exclusivity, it was also a way to maintain pricing power without dilution.

Other brands are negotiating hard with suppliers, exploring nearshoring options, or re-engineering products to reduce reliance on tariffed components. These are not just supply chain decisions—they’re brand equity strategies. The goal? Preserve both brand perception and financial health.

Value Isn’t Always About Price

Consumers of premium brands are value-conscious—not in the traditional discount sense, but in terms of perceived worth.

In a down market, these customers don’t necessarily stop spending. But they do demand more for what they pay. Brands that recognize this are responding not with blanket markdowns, but with:

  • Layered loyalty programs

  • Exclusive access and personalization

  • Value-added experiences

Rather than undercutting pricing integrity, they’re enhancing the overall value proposition. Think: premium packaging, limited-edition drops, concierge-level customer service, or unique in-store experiences that reaffirm the brand’s worth.

When consumers feel like they’re getting more, they don’t mind paying more. In this way, value perception in retail becomes a brand’s most powerful pricing lever.

The Dangers of Discount Drift

In times of economic pressure, even premium brands can be tempted by the fast hit of a markdown. And while targeted promotions can be a smart lever, overreliance can be fatal.

Discount fatigue is real. Once a customer sees your product at 40% off, it’s hard to convince them it’s worth full price again.

Brands like Lululemon, Sephora, and even Apple have historically been disciplined with markdowns, choosing to limit promotional exposure even during downturns. The result? Stronger brand equity, more consistent margins, and loyal customers who are conditioned to expect value without a discount.

Premium retailers need to adopt a surgical approach to promotions: limited-time offers, exclusive access events, or channel-specific discounts that don’t devalue the brand across the board. This is how you survive a price war without eroding brand perception.

Build the Moat: Invest in What Others Can’t Replicate

While lower-tier competitors race to the bottom, premium brands have an edge—they can invest in what can’t be commoditized:

  • Brand heritage

  • Design innovation

  • Cultural capital

  • Customer intimacy

These are the elements that justify a premium price, even in a cost-conscious, tariff-heavy environment. And in many ways, now is the perfect time to deepen that differentiation.

Double down on storytelling. Strengthen your digital experience. Tighten your visual identity. Expand owned brand offerings where you control margin. These moves create brand gravity—pulling your customers closer while your competitors scatter to survive.

Premium in a Price War: A CEO’s Opportunity

The current tariff economy is testing every assumption in retail. But for premium brands, it also presents a clear opportunity: to emerge not just intact, but more distinct, more valued, and more protected from future shocks.

Yes, costs are rising. But so is the reward for brands that can deliver consistency, creativity, and conviction in a time of volatility.

Maintaining margin and brand equity isn’t about holding the line—it’s about drawing a sharper one. One that separates your brand from the noise and reaffirms everything your customer already believes about you.

Because in a market that’s shouting about price, premium brands have the luxury of whispering something more powerful:

Worth it.

Turning the Tariff Crisis Into Retail’s Big Opportunity
Turning the Tariff Crisis Into Retail’s Big Opportunity 1440 428 ASG
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If you’ve been anywhere near a retail boardroom in recent weeks, you’ve felt the tension.

Tariffs are rising—again. Supply chains, already restructured post-COVID, are being tested once more. Freight costs remain stubbornly elevated. And now, with new duties slapping not just Chinese imports but key partners like Vietnam and Bangladesh, it feels as if the ground is shifting underfoot.

At first glance, this may look like a tariff crisis. And for retailers caught flat-footed, it certainly is. But for those who are agile, well-capitalized, and clear-eyed about the long-game mindset, this moment could be something else entirely.

A once-in-a-decade opportunity.

A Familiar Shock, A New Landscape

Economic shocks are nothing new to retail. From the Great Recession to the U.S.–China trade war, and of course the unprecedented disruption of COVID-19, the industry has seen how quickly the rules can change. What’s different this time is the scope and simultaneity of challenges—the tariff crisis hitting multiple countries at once, rising input and labor costs, and a value-driven consumer who’s still spending, but watching every dollar.

And yet, it’s precisely in these conditions that some of the most successful retail transformation stories have been written. As Steve Morris, founder of Asset Strategies Group, reminded us in a recent conversation, the retailers that come out stronger are rarely the ones that simply “weather the storm.” They’re the ones who move—carefully, yes, but decisively—into the void others leave behind.

The Shift in Power

Right now, we’re seeing a quiet but meaningful shift in leverage. Landlords, many still recovering from the post-COVID shakeout, are more open than they’ve been in years to renegotiating leases. Retailers that once struggled to secure premium real estate are suddenly finding opportunities to lock in prime space—at favorable terms and with long-term real estate leverage.

Brands with stable balance sheets and vision can begin expanding with less competition and lower occupancy costs. This isn’t about reckless growth; it’s about strategic placement. As Morris put it, “This is a buy-in opportunity”—not just for real estate, but for market share itself.

The Supply Chain Reset—Again

Sourcing, too, is undergoing a second evolution. Many retailers had just finished pivoting away from China in the wake of the 2018–2019 trade war. Now, with tariffs spreading across Southeast Asia, the old “China+1” playbook is being revised in real time. The new model? Something closer to “China+N+Nearshoring.”

This might seem like a step backward. It’s not. It’s a progression—toward a more resilient, decentralized, and strategically balanced supply network. Retailers that move now to secure production capacity in less-affected regions will have the edge. Those who wait could find themselves at the back of the line when the next sourcing crunch hits.

The Curious Strength of the Consumer

Amid all this tariff crisis turbulence, one surprise remains: the consumer hasn’t stopped spending.

In fact, some categories are seeing a surge in preemptive buying, as shoppers try to stay ahead of anticipated price increases. It’s a behavior that mirrors early-pandemic stockpiling—not from fear, but from foresight. Retailers that lean into this behavior with strategic pricing, loyalty perks, and thoughtful messaging are finding they can keep the momentum going.

What’s clear is that consumers are more value-driven than ever. But value doesn’t just mean low price. It means trust. Transparency. The confidence that what they buy is worth what they spend.

For brands that understand this, there’s an opportunity to build loyalty that lasts well beyond this moment.

retail crisis

Investing When Others Retreat

In uncertain times, it’s natural to focus on defense. But history—and recent conversations with industry veterans—suggest that the biggest long-term wins often come from a different posture: thoughtful offense.

While many brands are freezing capital, others are making bold bets. Investing in automation, strengthening omnichannel infrastructure, enhancing the in-store experience—these are the moves that will define the next generation of leaders. Retailers like Target and RH are already ahead of the curve, having made proactive sourcing and technology investments before the current wave of tariffs hit.

And then there’s M&A. As smaller players struggle under the weight of rising costs and capital constraints, well-funded retailers have a window to acquire talent, product lines, or even entire brands at a discount. Retail consolidation is already underway—and for those prepared to act, this may be the cheapest growth capital available.

A Defining Test of Leadership

The truth is, this tariff moment is about more than duties and dollars. It’s about how leaders respond when the path forward is murky. Will they retreat, play it safe, and wait for clarity that may never come? Or will they look through the volatility and see what’s being offered—a strategic realignment of the retail landscape?

No one is saying this is easy. The risks are real, and the costs are high. But so is the potential upside.

Because when everyone else is pulling back, staying steady isn’t enough. The brands that win will be the ones that step forward—carefully, yes, but confidently.

The question for every retail CEO in 2025 isn’t just how to survive the tariff crisis.

It’s how to turn it into their greatest opportunity yet.

Bringing Your DTC Brand to Life: The Emotional Journey Into Physical Retail
Bringing Your DTC Brand to Life: The Emotional Journey Into Physical Retail 1400 428 ASG
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There’s something deeply magical about stepping into a physical store. The moment you walk through the door, you’re immersed in a brand’s world—the textures, the atmosphere, the energy. It’s an experience that goes beyond the transaction. It’s about connection. And for DTC brands, expanding from the digital space into physical retail is a journey that taps into something more than just business strategy. It’s an emotional step towards deeper engagement and connection with your customers.

As a DTC brand, you’ve already established trust and loyalty online. Your customers know you, they follow you, and they believe in what you stand for. But when you move from pixels and screens to brick and mortar, it’s not just about replicating the digital experience in a store—it’s about enhancing it. It’s about creating a space where your story can come alive and resonate in a way that feels personal and unforgettable.

The Power of In-Person Connection

Think about the first time a customer holds your product in their hands, feels its weight, and experiences its design up close. It’s no longer just a photo on a screen or a review online. It’s real. It’s tangible. It’s the beginning of a deeper relationship. As retail expert Rachel Williamson says, “The best retail experiences aren’t about just selling products—they’re about creating emotional connections that turn first-time visitors into loyal customers.”

When you open your doors to a physical store, you’re offering more than just products—you’re offering an experience that touches your customers’ hearts. There’s something undeniably powerful about seeing someone light up when they find something they love, hearing their excitement as they tell their friends, or simply watching them linger in your store because they feel at home there. This is what sets physical retail apart—it creates moments that stay with your customers long after they’ve left.

The CEO's Guide to Launching Physical Retail From DTC Roots

Entering physical retail is complex. Learn how the smartest DTC brands get it done, and get a step-by-step execution plan.

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Crafting a Space That Tells Your Story

Every brick-and-mortar store is an extension of your brand’s identity. It’s where your story unfolds in the real world, where your values and your mission come to life. But this doesn’t happen by chance. It requires intention, thoughtfulness, and a deep understanding of what your brand means to your customers.

Rachel Williamson shares, “A store is an extension of the brand—it’s where your customers experience the heart of what you do. It’s the chance to show them that what they’ve connected with online is just as authentic, real, and powerful in person.”

When you think about your store design, think about the emotion you want to evoke. Every detail should be a reflection of your brand’s essence. The layout, the colors, the displays—each element must tell your story and invite customers to immerse themselves fully in your world. This is your chance to create an environment that doesn’t just look beautiful—it feels like home.

Finding the Right Place to Build Connections

Location isn’t just about foot traffic—it’s about finding a space where your brand can thrive and connect with the right audience. Think about the neighborhoods, the communities, the people who align with your values. Your location should reflect the essence of your brand and attract those who will appreciate the experience you’re offering.

Rachel wisely says, “A great location isn’t just one with high foot traffic—it’s one that aligns with your brand’s values and connects with your customer base. It’s where your story can truly resonate and grow.”

The Heartbeat of Operations

Behind every unforgettable retail experience is an operation that runs like a well-oiled machine. From inventory management to customer service, the operational side of retail might not seem glamorous, but it’s what makes everything else possible. Think of your operations as the unsung hero that allows the magic to happen seamlessly. When everything is in place, customers don’t just shop—they are swept up in the experience, leaving with a smile and a story to tell.

Rachel puts it simply: “The real work in retail happens behind the scenes. It’s the operational excellence that ensures every interaction, every purchase, and every moment feels effortless to the customer.”

The Emotional Impact of Your Retail Store

Transitioning from a digital-only model to a physical one is more than just a business decision. It’s about creating an emotional experience that draws people in and makes them feel connected to something bigger than just a product. It’s about telling your story, building your community, and offering an experience that resonates deeply with your customers.

When you get it right, your store becomes more than just a place to buy things. It becomes a destination—a place where customers can connect with your brand in a way that feels meaningful. It’s a space where they feel valued, seen, and part of something important.

As Rachel wisely puts it, “A physical store isn’t just a retail space; it’s an experience that deepens the relationship you have with your customers. When done right, it becomes a place where your brand truly comes to life.”

The journey from DTC to physical retail isn’t just about selling products; it’s about creating a lasting impression, a deep connection, and an unforgettable experience. So when you open that door, make it more than just a store—make it a place where your brand and your customers’ hearts meet.

At ASG, we understand the emotional journey of expanding into physical retail. We’re here to help you make that leap with intention and heart, so your brand’s story can unfold in the real world. Let’s bring your vision to life, one unforgettable experience at a time.

photo of shopper walking into new DTC retail store

Now’s the Moment for DTC Brands to Go Physical—Here’s How
Now’s the Moment for DTC Brands to Go Physical—Here’s How 1440 428 ASG
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The U.S. retail landscape is undergoing one of its most significant shifts in decades. In 2024 alone, over 7,000 stores closed their doors, and early signs indicate that 2025 could exceed that number. From mass market chains like Big Lots and Rite Aid to category-specific retailers like Joann and Forever 21, legacy brands are pulling back—leaving behind a trail of vacancies in once high-demand locations.

On the surface, it may look like traditional retail is collapsing. But the reality is more nuanced: retail isn’t dying—it’s being restructured. The contraction of underperforming legacy brands is clearing the way for a new generation of retailers. And at the front of the line? Digitally native direct-to-consumer (DTC) brands.

These DTC brands were born online. They understand how to connect with customers, build community, and scale through digital channels. But now, they’re turning their attention to physical retail—not because they have to, but because it’s a strategic advantage. And timing couldn’t be better.

Physical Retail Is Evolving—and DTC Brands Are Built for It

Physical stores have evolved from transactional environments into multi-functional brand hubs. They’re no longer just a place to sell products—they’re an extension of a brand’s digital presence, a tool for acquisition, a vehicle for retention, and a differentiator in a noisy marketplace.

Consider Warby Parker. The eyewear brand began online but quickly recognized the value of brick-and-mortar in improving conversion, lowering customer acquisition costs, and expanding brand presence.

Today, more than half of its revenue comes from physical stores. Parachute, Allbirds, Glossier, and Brooklinen have followed a similar path—relying on retail locations to increase average order value, reduce returns, and give customers a tactile experience that’s hard to replicate online.

DTC Brands

Importantly, these stores don’t follow the traditional playbook. They’re showrooms, not stockrooms. They’re built for service, not just sales. And they’re designed with data in mind—from site selection to staffing strategy to inventory planning.

The CEO's Guide to Launching Physical Retail From DTC Roots

Entering physical retail is complex. Learn how the smartest DTC brands get it done, and get a step-by-step execution plan.

Get the Guide

The Real Estate Market Has Shifted in Favor of the Agile

Legacy closures are creating more than just empty storefronts—they’re creating opportunities in top-tier trade areas that were previously out of reach for emerging brands. Prime mall spaces, urban streetfronts, and neighborhood power centers are opening up—and landlords are more flexible than ever.

Why? Because they need fresh concepts that drive foot traffic and align with the modern consumer. Digitally native brands bring just that. Landlords are now offering:

  • Short-term lease options for pop-ups or pilot stores
  • Revenue-sharing agreements that reduce fixed costs for tenants
  • Tenant improvement (TI) allowances to help offset buildout costs

This flexibility lowers the barrier to entry and allows brands to test physical retail without committing to long-term leases or high capital investments.

DTC brand

Start Small. Think Strategically. Scale Smart.

The beauty of the DTC playbook is how it translates to real estate: test, learn, iterate, expand. Physical retail doesn’t have to start with a fleet of flagship stores. In fact, the most successful brands are starting with one or two test markets, validating demand, and refining the model before scaling up.

Pop-ups are a smart entry point—especially in high-footfall corridors or recently vacated spaces. A six-month test can reveal everything from foot traffic conversion rates to local inventory preferences. It also helps brands understand operational needs, from staffing to fulfillment.

Once the model is proven, brands can move into permanent locations, expand to similar trade areas, and begin building a portfolio of stores that are not just branded, but profitable.

The Moment to Move is Now

What’s happening in retail today is a rare moment of realignment. The big, legacy players are shrinking. The leases are available. The terms are negotiable. And the consumer is ready to meet you offline.

For DTC brands that have mastered digital, the next frontier is clear: own the physical channel on your terms. With the right strategy, you don’t just get into brick-and-mortar—you use it to strengthen your brand, grow customer lifetime value, and outperform your competition.

The window is open. Smart brands are already moving through it. The only question is: will yours?

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