Last March, we all got really comfortable living life online. Even my three-year-old added 鈥淶oom鈥 to his vocabulary鈥攁nd not in reference to trucks. As for all the online shopping we鈥檇 already been doing? We did a whole lot more of it. In fact, 2020 online spending was up 44 percent year over year, according to research organization Digital Commerce 360.
And yet, this summer, many brands that have long succeeded in online, direct-to-consumer and partner-retailer sales (e.g., REI) are opening up new brick-and-mortar locations. Their reasoning: having a physical location will increase brand awareness among new customers and garner further trust with current customers. Oh, and they hope the stores will do better than break even.
Case in point: this summer, online giant Backcountry is putting its money where the customer is and opening two new retail locations in Park City, Utah, and Boulder, Colorado. The brand will rely on lessons from its 2019 pop-up presence in New York City鈥攏amely, that a store needs to offer more than just 鈥渙ne-and-done transactions,鈥 said Chris Purkey, senior VP of customer experience and head of retail for Backcountry. To do that, the brick-and-mortar locations will have experts (dubbed Gearheads) on site to help customers plan trips, host events like film screenings, and organize volunteer service days with local nonprofits. Ultimately, retail locations will allow the brand to take a page from the indie gear shop playbook and add value in a way that a stand-alone website can鈥檛.
It鈥檚 about meeting customers where they are鈥攁nd that鈥檚 omnichannel, Purkey explained. 鈥淚n recent years, there鈥檚 been a convergence of retail models,鈥 he said. 鈥淵ou鈥檝e got pure-play, e-commerce retailers like us now launching into brick and mortar, and traditional retailers investing heavily in digital capabilities.鈥
Black Diamond, which has historically sold either direct to consumers or through partner retailers, is also slowly expanding its own retail presence. Since 2019, the brand has opened flagship locations in its hometown of Salt Lake City and nearby Park City, as well as in Big Sky, Montana. Black Diamond will open a store in Boulder, Colorado, this July, and has three others in the works.
All of Black Diamond鈥檚 stores take an aesthetic approach to community integration: the Big Sky site features local tie-ins like Montana barnwood, and the Park City shop has a memorial to a hometown athlete. Said Devin Gillette, Black Diamond鈥檚 director of retail, 鈥淚t鈥檚 not the quick, plug-and-play retail store where you鈥檒l walk in and it will be like, 鈥極h, it鈥檚 a Black Diamond store.鈥 It鈥檚 going to be like, 鈥榃ow, I really want to go see another store because they鈥檙e all so different and unique and match the community.鈥欌
While brands seem sincere in their desire to be a part of the surrounding communities, there鈥檚 considerable business strategy behind branded retail, too. Having a physical presence in an outdoor hub like Park City, Big Sky, or Boulder puts a brand front and center with outdoor-minded consumers. And custom retail shops allow brands to 鈥渢ell their story from A to Z,鈥 said Steve Stout, vice president of retail for brick-and-mortar veteran 贵箩盲濒濒谤盲惫别苍. Since 2010, 贵箩盲濒濒谤盲惫别苍 has opened 33 North American retail locations.
The sites serve as a vital, in-person touchpoint with the consumer, one that has allowed the Swedish brand to explain its origins, mission, and premium price point, Stout said. 鈥淭hose questions have to be answered along the way, and you have a much better chance of doing that in your own brand store.鈥
Brick and mortar has been part of Stio鈥檚 strategy from day one. The apparel brand opened its first retail location in 2012 in its hometown of Jackson, Wyoming, to coincide with its website launch and first catalog mailing. 鈥淚 was a little nervous [that we would be perceived as] just another catalog company out there,鈥 said Stio founder and CEO Steve Sullivan. After all, anyone can set up a website. Opening the retail store was a strategic move to establish legitimacy. 鈥淚 think it added a lot of weight for a new, direct-to-consumer brand to have that,鈥 Sullivan said.
That proof of legitimacy is a vital step in building trust with consumers鈥攅specially when a brand is selling gear that lives literally depend on, Gillette said, referring to the climbing safety equipment Black Diamond is known for. 鈥淭his really strong trust relationship comes naturally with having human interaction and connection. And what better way to do that than having a brick-and-mortar store that provides community engagement?鈥
Community members welcome those efforts. 鈥淲e鈥檝e had such an explosion of interest in the outdoors and so many people going out who are totally new,鈥 said Katie Massey, a Black Diamond fan, avid rock climber, and ten-year Boulder resident who frequently attends local retail events. She鈥檚 concerned about overuse of local trails and appreciates the kind of community that builds around retail shops鈥攅ven branded ones. 鈥淚t helps spread the word about the right ethics outside,鈥 she said. 鈥淸These stores] help people get into the outdoors in a responsible way.鈥
Some local shops hope for a symbiotic relationship with their branded neighbors. Sally Gilman, owner of Boulder specialty climbing retailer Rock and Resole, says increased awareness of brands like Black Diamond just makes it more likely that her customers will recognize the brand in her store. She also points out that her shop may be better suited to serve local customers compared to the new stores on the tourist hub of Pearl Street. 鈥淲e have different niches that serve the climbing community,鈥 she said. 鈥淭ruly, I want to have a spirit of collaboration.鈥
Shelley Dunbar, owner of the iconic Boulder store Neptune Mountaineering, agreed that retailers on Pearl will cater more to out-of-towners. She added, though, that the brands she carries could have provided her a courtesy heads-up that they鈥檙e moving to her neighborhood to allow her to adjust her orders. 鈥淚t鈥檚 better for brands to be up-front and transparent ahead of time so that we can adapt,鈥 Dunbar said.
Cohabitating and, in some cases, collaborating with local shops offer additional听 benefits to brick-and-mortar branded stores. But the drawback? It鈥檚 expensive. Personnel and real estate cost a pretty penny, especially in prime locations like Pearl Street where lease rates can be so high that stores become more about marketing than moneymaking. In these cases, 鈥渋f you break even, you鈥檙e stoked,鈥 Sullivan said, though he was quick to note Stio鈥檚 stores have always ended up in the black.
As for the timing? The pandemic had some impact on Backcountry鈥檚 retail strategy,听 Purkey said, but it never left higher-ups hesitant. 鈥淚f anything, because of quarantine, there鈥檚 pent-up desire to create epic memories outside, to create human connection,鈥 Purkey said. 鈥淲e鈥檙e probably better positioned to do this, and do it in a way that will be received by our consumer positively, now more than ever.鈥