Retail Strategy

You Don’t Need a Store. You Need a Retail Thesis.
You Don’t Need a Store. You Need a Retail Thesis. 1440 428 ASG
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Opening a store isn’t a milestone.

It’s an operating choice with real cost, fixed commitments, and downstream consequences. If you can’t explain what the store is for—and how you’ll know it worked—you’re buying risk without direction. A retail thesis gives you the clarity to spend wisely and scale deliberately.

What a retail thesis actually is

It’s a concise, evidence-based point of view on why physical retail belongs in your model now. It defines the store’s job, the outcomes that matter beyond four-wall sales, where the customer shows up offline, and how you’ll measure success. You don’t need a 30-page deck. You need a crisp answer to: why this format, in this market, at this time—and what earns the right to open the next one.

The jobs a store can do (pick the few that matter)

  • Acquire a new segment you’re not winning online.
  • Lower costs by absorbing returns or servicing try-before-you-buy.
  • Lift brand through experience and community that ads can’t replicate.
  • Drive halo—measurable e-comm lift in the trade area.
  • Test new categories or margin structures in the wild.

All are valid. None are universal. Your thesis prioritizes which jobs your store must do, so design, staffing, KPIs, and capital follow function—not vibe.

Why brands stumble without one

Early traction can masquerade as a model. One good opening turns into overbuilt stores, pricier streets, and copy-paste metrics that don’t travel. Costs rise. The story blurs. The thesis prevents that drift: it sets guardrails, decision criteria, and stop-conditions before you sign again.

Real estate is not just a place—it’s precedent

Your first site tells landlords, investors, and your own team how you intend to grow. A flashy, high-street box can build brand heat but teach you little about what will scale; a demand-led site in a representative trade area yields the data you need for Stores 2–10. There’s no single right answer—only the one that matches your margin structure, capital plan, and risk tolerance. Pick the location that helps you learn fast and negotiate better next time.

Build the thesis, then the store

  • Role: What problem does the store solve that digital cannot?
  • Metrics: What will you track beyond revenue—conversion, traffic quality, halo on local e-comm, return deflection, NPS?
  • Format: Size, service model, staffing, inventory philosophy aligned to the job.
  • Market: Where the customer already is—validated by demand, not glamour ZIP codes.
  • Proof plan: The window to evaluate, the thresholds to continue, and the changes you’ll make before store two.

Clarity up front sharpens every downstream choice—site, lease posture, kit-of-parts, and operating plan.

Measurement that actually informs decisions

Instrument the box. Count qualified traffic, tie POS to local digital lift, tag returns avoided, and monitor dwell and service times. Decide in advance what “worked” means and when you’ll decide. The goal isn’t to win awards—it’s to learn fast enough to either scale with confidence or change course with minimal sunk cost.

The payoff

With a thesis, the store stops being an expensive experiment and becomes a precise tool. You invest where the job is clear, you say no where it isn’t, and your second and third openings benefit from evidence, not assumptions. The best retail strategies don’t start with a floor plan. They start with a point of view you can execute.

The Hidden Cost of a One-Sided Lease
The Hidden Cost of a One-Sided Lease 1440 428 ASG
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Opening a first store feels like momentum. The lease behind it decides whether that momentum scales or stalls.

Treat the document as your operating system: what you sign now sets cost, flexibility, and precedent for every deal that follows. A good store can still be dragged by a bad lease; a disciplined lease can keep a mediocre first site from becoming a balance-sheet anchor.

Why “easy now” gets expensive later

Speed is seductive. You accept a long term, light TI, a wide radius, and vague rent-start language because construction is queued and the launch date is public. Eighteen months later, the format needs a tweak, a stronger submarket emerges, and your next landlord is pricing against the comp you just set. Exit is costly. Expansion is fenced. Your leverage is lower because your first contract telegraphed you’d take rigidity over discipline.

It’s not about “winning”—it’s about matching term to proof

You won’t get every clause. You don’t need to. Start with what you’re proving and how fast you’ll know. If payback is 18–24 months on a light build, a shorter base term with options and a performance out makes sense, even if rent is a touch higher and TI thinner. If the box is infrastructure-heavy, a longer term can be rational—provided rent starts on true delivery, relocation rights are clear, and sales kickers only engage at a high hurdle. The point is proportionality: commitment that matches evidence, flexibility where the risk is highest.

Real estate is not just a place—it’s precedent

Your first site tells landlords, investors, and your own team how you intend to grow. A flashy, high-street box can build brand heat but teach you little about what will scale; a demand-led site in a representative trade area yields the data you need for Stores 2–10. There’s no single right answer—only the one that matches your margin structure, capital plan, and risk tolerance. Pick the location that helps you learn fast and negotiate better next time.

The clauses that move the P&L

  • Rent start and delivery: Tie rent to actual possession and landlord work completion, in writing. Soft delivery slips kill month one economics.
  • Kick-out or break: A defined exit after a test period caps downside and forces a data-driven decision. No kick-out? Trade for a fixed break fee or a year-one rent ramp.
  • Radius and exclusives: Narrow by distance, duration, and format so one store doesn’t block the next market or a pop-up that feeds demand.
  • TI and abatements: Cash TI (or abatement) eases capex and sets a benchmark. Expect some give—term length, base rent, or guarantees—but document an amortization schedule so “payback” doesn’t morph later.
  • Assignments and transfers: Protect the ability to sublease, assign, or relocate. Future you will need options you can execute without a landlord veto.

Precedent is real

Landlords talk. Brokers remember. Your first paper becomes your posture. If it shows clear thinking—e.g., options aligned to payback, clean rent-start mechanics, sensible radius—future deals tend to get easier, not harder. If it reads like a rush to keys, you’ll keep paying for speed in the form of rigid terms and thin concessions.

A simple test before you sign

Read the LOI and answer three questions out loud:

  1. Downside: If the store misses, can we exit or reset without torpedoing the rollout?
  2. Growth: Does anything here fence out our next logical site or format?
  3. Cash: Do TI, abatement, and rent-start mechanics match our build, schedule, and payback?

If the answers aren’t crisp, you’re buying risk you don’t need.

Bottom line: A lease isn’t a task to clear on the way to opening. It’s the blueprint that determines what you can build next. Make the tradeoffs on purpose, match commitment to proof, and lock the mechanics that protect cash and options. Your future stores will thank you.

From Clicks to Concrete: What Changes When You Sign a Lease
From Clicks to Concrete: What Changes When You Sign a Lease 1440 428 ASG
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Moving from pure digital to a physical store isn’t a channel change; it’s an operating-model shift.

A lease fixes your costs, constrains your options, and sets precedent for every deal that follows. The goal isn’t to scare you off—it’s to help you sign with eyes open, so Store #1 becomes a blueprint you can repeat, not a one-off you have to unwind.

You’re not just a brand anymore—you’re a tenant

Online, you can pause, iterate, or reallocate budget in a week. A lease locks you into timelines, rent, and delivery conditions you don’t fully control. That’s not inherently bad; discipline can sharpen the model. But it means term length, rent-start triggers, kick-outs, radius, and TI aren’t boilerplate—they’re the levers that determine how agile you’ll be when reality doesn’t match the pitch. Treat the paper like strategy, not paperwork.

Tradeoff to understand: shorter base terms with options and performance outs increase flexibility but can raise effective rent or shrink TI; longer terms can lower rent and increase TI but limit your ability to pivot without paying for it.

Customer experience becomes operations

UX turns into how your store runs on a rainy Tuesday: staffing, training, shrink control, ADA, HVAC, storage, deliveries, hours, and center rules. Done well, four walls deepen engagement and lift e-comm in the trade area; done poorly, they add cost without moving the business. Build the prototype like a learning lab: instrument the box, measure conversion and halo, and be ready to tweak assortment, hours, and layout based on what the data says—not what the deck promised.

Your P&L gets heavier—and clearer

Rent, buildout, maintenance, insurance, and payroll don’t scale down because traffic dips. Fixed costs force rigor: productivity targets, four-wall contribution, payback, and any omnichannel lift need to be explicit and trackable. A weak lease or overbuilt store doesn’t just miss plan; it drags the P&L until you fix or exit. Bake the exit into the lease before you need it.

Real estate is not just a place—it’s precedent

Your first site tells landlords, investors, and your own team how you intend to grow. A flashy, high-street box can build brand heat but teach you little about what will scale; a demand-led site in a representative trade area yields the data you need for Stores 2–10. There’s no single right answer—only the one that matches your margin structure, capital plan, and risk tolerance. Pick the location that helps you learn fast and negotiate better next time.

A practical lens before you sign

  • Term & options: match commitment to proof and payback; pair shorter bases with clear renewal paths or, for heavier capex, longer terms with flexibility elsewhere.
  • Downside plan: performance-based kick-out or defined break option; if not, trade for rent ramps, relocation rights, or broader assignment.
  • Growth room: narrow radius by distance, duration, and format so you don’t fence out the next store.
  • TI & rent start: document delivery conditions, TI draws, and rent-start triggers tied to true possession and LL work completion.
  • Prototype discipline: set target cost per square foot and a kit-of-parts you can replicate without re-engineering every build.

Bottom line: Going from clicks to concrete isn’t about finding a cool space; it’s about committing to an operating system you can scale. Make the lease your blueprint, design the first store to learn, and keep your options open—on purpose.

The State of the Market: How to Time Your Lease Decisions in 2025
The State of the Market: How to Time Your Lease Decisions in 2025 1440 428 ASG
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Why market timing and strategic advisory matter more than ever in retail and office lease management

As we reach the mid-point of 2025, retail and office leasing is experiencing a pivotal reset. The aftermath of pandemic-era disruption, the normalization of hybrid work flexibility, evolving consumer behaviors, and economic uncertainty impacted by on-again, off-again tariffs, have left a complex, yet opportunity-rich environment. For tenant rep leaders and corporate lease administrators, the question is not just what space to lease but when and how.

Timing, as always, is everything. And in today’s climate, it can also be the difference between overcommitting to yesterday’s lease standards or securing terms that futureproof your portfolio.

Retail vs. Office: Two Diverging Stories

Retail leasing in 2025 is gaining momentum, particularly in well-performing suburban nodes and mixed-use urban districts. Experiential brands and direct-to-consumer (DTC) upstarts are capitalizing on vacancies to test physical formats. At the same time, traditional retailers are reassessing footprints, trimming exposure in underperforming centers while continuing to invest in higher-performing flagship, community, and A-level mall locations where demand remains at all-time highs.

By contrast, office leases remain in a state of flux. While Class A assets in prime locations have seen some rebound, secondary office space continues to struggle. Hybrid work is no longer a trend; it’s a norm. This is pushing tenants to demand more flexibility, wellness infrastructure, and technology integration in exchange for any long-term commitments.

For lease managers overseeing multi-format portfolios or both categories, the divergence means a need for tailored strategies and precise timing.

Vacancy Rates: A Window of Opportunity?

The current vacancy rates in the retail and office sectors provide both a warning and an opportunity.

  • Retail vacancy rates are tightening in desirable high-traffic corridors, especially for smaller formats and pop-up-friendly spaces. In the United States, the overall vacancy rate is 4.2% for the country’s 12.1 billion square feet of retail space, and that’s led to increased competition among occupiers, according to Costar.
  • Office vacancies, particularly in B- and C-class assets, have been elevated, giving tenants significant leverage, especially in Q1 and Q2, when landlords are under pressure to fill space. That elevated level of office vacancies is expected to continue throughout the year and into 2026.

However, national averages can be misleading. Local micro-market insights, block-by-block trends, and demographic shifts are now more critical than ever. Opportunities vary significantly by region. Lease administrators and tenant reps must go beyond the data and ask: What do these numbers mean for this specific location, use case, and brand?

Landlord Concessions and Timing Tactics

In today’s environment, landlord concessions have become a key negotiating tool, and they vary significantly by asset class and region.

  • Retail landlords are offering TI allowances, early termination clauses, and flexible expansion options in newer developments or redevelopments.
  • Office landlords, on the other hand, are providing deeper rent abatement periods, full turnkey buildouts, and shared amenity upgrades.

But these incentives are time-sensitive. In markets where retail is heating up, the window to negotiate favorable terms is closing. Conversely, in office, waiting too long might mean missing out on desirable floor plates or access to premium amenities.

The message is clear: 2025 is not a year for reactive lease planning. It’s a year for precision and foresight.

How Strategic Advisors Add Value

This is where tenant rep leaders and savvy lease management teams can become invaluable. It’s not just about negotiating a lease; it’s about advising clients or internal stakeholders on the optimal time to execute, where to deploy capital, and how to leverage current market dynamics.

Whether it’s:

  • Benchmarking existing leases against current market trends
  • Timing renewals or relocations to coincide with seasonal dips in demand
  • Or tapping into underutilized subleases or shared-space formats

…the best advisors in 2025 will be the ones who see around corners.

Navigating the Lease Market through 2025 and Beyond

The state of the lease market in 2025 is one of divergence, nuance, and rapid evolution. Retail and office are moving on separate trajectories, vacancy rates are more complex than surface numbers would have you believe, and landlord concessions are shifting with every quarter. For tenant rep leaders and lease managers, the strategic edge lies not just in execution, but in timing.

Now is the time to act with intention, supported by data, and guided by market-savvy partners.

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.

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.

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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.

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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?

Why Livestream Retail Matters Now More Than Ever
Why Livestream Retail Matters Now More Than Ever 1440 428 ASG
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Bloomingdale’s leveraged livestream retail throughout the pandemic, transforming static shopping into dynamic, interactive experiences. These events weren’t just about showcasing products—they fostered direct engagement, exclusive access, and real-time purchasing.

Today, livestream shopping has evolved from an experiment into a core retail strategy. It doesn’t replace brick-and-mortar; rather, it enhances customer engagement by integrating digital and physical touchpoints.

With U.S. livestream e-commerce sales projected to hit $68 billion by 2026, leading platforms like TikTok Live, Whatnot, and eBay Live are setting new standards. For brands, this isn’t just a trend—it’s an opportunity to drive sales, build community, and create seamless omnichannel experiences.

 

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The New Frontier of Retail Engagement

Retail success hinges on meeting customers where they engage most—whether in-store or online. Livestream retail isn’t just another channel; it’s a high-engagement, data-rich touchpoint that blends entertainment with commerce. In today’s digital-first world, livestream shopping offers brands a direct, interactive way to build real-time relationships, showcase products in action through live demonstrations, and create urgency with exclusive, time-sensitive offers. More than just another sales avenue, it is a powerful tool for driving both online conversions and in-store traffic, reinforcing an omnichannel strategy that strengthens brand loyalty and deepens customer engagement.

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Why Livestream Retail Matters for Physical Stores

Livestream retail isn’t just an online sales tool—it actively shapes in-store behavior. With 83% of shoppers researching online before visiting a store, brands that leverage livestreaming effectively can influence purchasing decisions before customers even set foot in a physical location.

Retailers that integrate livestream shopping into their strategy can bridge digital and physical retail, using online events to drive store foot traffic and strengthen customer relationships long before an in-person visit. Beyond sales, livestreaming provides real-time consumer insights, helping brands refine merchandising strategies, experiential retail concepts, and store layouts. In the evolving retail landscape, success isn’t about choosing between digital and physical—it’s about orchestrating both in a way that maximizes customer engagement and long-term profitability.

Modern Livestream Shopping vs. Traditional TV Retail

The rise of livestream shopping may resemble the era of QVC and home shopping networks, but today’s version is more powerful, interactive, and omnichannel. Unlike traditional TV retail, modern livestream commerce offers:

  • Direct audience engagement – Real-time chat, polls, and Q&A create a two-way conversation between brands and consumers.
  • Omnichannel accessibility – Shoppers don’t need a TV; they can join via TikTok, Instagram, YouTube, or a brand’s website.
  • Frictionless purchasing – Seamless, in-stream checkout options enable instant conversion with fewer abandoned carts.

“At the heart of livestream commerce is a simple yet powerful psychology: viewers tune in not just to buy products but to be part of a moment.”
– Hackernoon

The shift from passive viewing to active participation is what makes livestream retail a game-changer. Consumers trust influencers and brands they engage with in real time, transforming shopping from a transaction into an experience.

Where Livestream Shopping is Scaling the Fastest

Livestream shopping is growing rapidly, but not all platforms are equal. TikTok, Whatnot, and YouTube are leading the charge, each offering unique advantages for brands:

  • TikTok – The undisputed leader in live shopping engagement. Since launching TikTok Live Shopping in 2021, the platform has rapidly scaled its e-commerce ecosystem. In November 2024, BK Beauty’s eight-hour live event shattered expectations, generating $100,000 in sales—five times its initial goal. With 40 million U.S. TikTok shoppers projected by 2026, brands that master TikTok Live gain a competitive edge.
  • Whatnot – It’s the fastest-growing livestream shopping platform in the U.S. and initially popular in niche categories like collectibles and streetwear. Whatnot’s explosive success—$2 billion in 2024 sales—proves its potential across industries. With 175,000+ weekly livestream hours, Whatnot now outperforms QVC’s weekly broadcast hours by 800x.
  • YouTube – With 2.7 billion users, YouTube dominates livestream video consumption. While 40% of retail shoppers have purchased products from YouTube livestreams, its real advantage is discoverability. As the second-largest search engine, YouTube helps brands drive long-tail engagement far beyond a single live event.

Retailers must match platform selection to audience behavior—leveraging TikTok for viral engagement, Whatnot for passionate communities, and YouTube for sustained visibility.

Integrate Livestream Shopping into Your Brand Strategy

Livestream retail isn’t a side project—it’s a scalable revenue channel that deepens brand-consumer relationships. Breaking into livestream shopping doesn’t require massive budgets, but it does require precision and strategic execution. Brands that succeed in this space aren’t just selling products; they’re building communities, driving engagement, and converting passive audiences into loyal customers.

One of the most effective ways to drive livestream success is through influencer partnerships. Collaborating with trusted creators—especially micro-influencers with highly engaged audiences—allows brands to tap into pre-existing trust and credibility. Choosing the right platform is just as critical. TikTok drives impulse purchases, Whatnot fosters high-intensity niche communities, and YouTube ensures long-term discoverability. Each platform serves a different purpose, making it essential for brands to align their strategy with audience behaviors.

Beyond partnerships and platforms, brands must prioritize engagement over hard selling. The most impactful livestreams feel organic and interactive, incorporating live Q&A, behind-the-scenes content, and exclusive promotions that create urgency and excitement. Finally, livestream shopping should be an extension of a broader omnichannel strategy—used not just to drive online sales, but to increase store visits, build brand loyalty, and strengthen the overall retail ecosystem.

The Future of Livestream Retail

Whether consumers shop in-store, online, or through livestreams, every touchpoint shapes their perception of a brand. Success will depend on the ability to blend entertainment with commerce, leverage real-time engagement, and build seamless omnichannel experiences that drive both online and in-store transactions.

The next wave of retail isn’t about choosing between physical and digital—it’s about orchestrating both to create deeper customer relationships, maximize lifetime value, and drive sustained growth.

The future of retail is about creating immersive, real-time experiences that drive engagement and sales. Livestream shopping is revolutionizing how brands connect with consumers, blending entertainment with commerce to shape the next era of retail.

Learn how livestream retail fits into the bigger picture of emerging trends shaping the industry. Download our exclusive report, Emerging Retail Trends 2025, and discover the strategies leading brands are using to stay ahead.

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