Digital Brands Group, Inc. (DBG), which has a portfolio of luxury lifestyle brands such as Bailey 44, DSTLD and Sundry, plans to open its first retail store in Dallas. Located at the Simon Premium Outlet Mall in the Dallas suburb of Allen, Texas, DBG will use the store to clear excess inventory it acquired with its Sundry acquisition, which was completed January 2023.
Although the store will not open until April 2024, the company already has big plans for it: the store inventory will be sold at “meaningfully higher margins” than if it was pushed into the off-price channel, according to DBG. As a result, executives forecast that the store will generate more than $1.5 million in annual revenue.
Because the Sundry inventory is already paid for and available, DBG expects it will lead to cash flow savings of more than $500,000 per year. These projections are based on the historical performance of the store’s location as well as excess Sundry inventory prior to the acquisition.
“We are excited to begin the retail store phase of our growth strategy,” said Hil Davis, CEO of Digital Brands Group in a statement. “We believe the best performing retail brands will have three legs to their growth story: (1) wholesale, (2) ecommerce and (3) retail stores.”
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