Should threadless move into physical retail distribution? why or why not?
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1.Should Threadless move into physical retail distribution? Why or why not? 2. If Threadless were to move into physical retail distribution, how? Should it open its own store or sell through an existing retailer? 3. If Threadless were to move into physical retail distribution, what should the relationship be between its online vs. physical distribution?
A Challenge that all retailers are facing today is trying to find the perfect blend of both physical and online distribution channels. A company like Threadless, which is well known in the digital world, needs to figure out how to take strides in the physical retail space. In 2007 Threadless opened up a physical store in Chicago, where the company is headquartered, and shuttered it 8 years later due to low sales volume. While it currently is in a partnership with Gap, what is the best way for Threadless to gain a presence in the physical retail world.
Threadless should not move into a physical retail distribution. It has large capital investments, geographical limitations and limited shelf space, which does not fit into Threadless’ marketing mix of making highly desirable t-shirts that sell quickly. Additionally storefronts have to have employees staffing its stores, and Threadless has never employed a large staffing strategy; it doesn’t even house a design team. Retail distribution also doesn’t meet the unique and quirky persona that Threadless connotes, as retail stores are often thought of being outdated and cookie-cutter.
Threadless should open up a series of traveling pop-up shops in major metropolitan areas nationwide (e.g. Chicago, New York, Boston, San Francisco, Los Angeles, Seattle) where its customer base is high. It offers the beauty of having a physical location, without the high fixed costs of having a traditional brick and mortar store. By opening up pop ups, this better fits Threadless’ image of being hip and trendy. Additionally it doesn’t have to partner with another business, and this brings the added benefit of Threadless not having to monitor its partner for quality standards. It also doesn’t have to split the profits from sales of its shirts and keep more of its profits.
They should be in coordination with each other, but I think the best idea would be one that blends the two stores. E.g. Threadless should hold contests for t-shirts that they’ll sell exclusively in their pop-up stores, and they should make available in store their online catalog via tablet computers.
A Challenge that all retailers are facing today is trying to find the perfect blend of both physical and online distribution channels. A company like Threadless, which is well known in the digital world, needs to figure out how to take strides in the physical retail space. In 2007 Threadless opened up a physical store in Chicago, where the company is headquartered, and shuttered it 8 years later due to low sales volume. While it currently is in a partnership with Gap, what is the best way for Threadless to gain a presence in the physical retail world.
Threadless should not move into a physical retail distribution. It has large capital investments, geographical limitations and limited shelf space, which does not fit into Threadless’ marketing mix of making highly desirable t-shirts that sell quickly. Additionally storefronts have to have employees staffing its stores, and Threadless has never employed a large staffing strategy; it doesn’t even house a design team. Retail distribution also doesn’t meet the unique and quirky persona that Threadless connotes, as retail stores are often thought of being outdated and cookie-cutter.
Threadless should open up a series of traveling pop-up shops in major metropolitan areas nationwide (e.g. Chicago, New York, Boston, San Francisco, Los Angeles, Seattle) where its customer base is high. It offers the beauty of having a physical location, without the high fixed costs of having a traditional brick and mortar store. By opening up pop ups, this better fits Threadless’ image of being hip and trendy. Additionally it doesn’t have to partner with another business, and this brings the added benefit of Threadless not having to monitor its partner for quality standards. It also doesn’t have to split the profits from sales of its shirts and keep more of its profits.
They should be in coordination with each other, but I think the best idea would be one that blends the two stores. E.g. Threadless should hold contests for t-shirts that they’ll sell exclusively in their pop-up stores, and they should make available in store their online catalog via tablet computers.
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