The news: Direct-to-consumer (D2C) home goods retailers Brooklinen and Parachute are both aggressively expanding their physical presences as part of their broader efforts to gain a larger piece of the home goods market.
More on this: Beyond stores, the two retailers are embarking on a number of other initiatives to broaden their reach.
The trend line: The two retailers’ efforts come at a time when digitally native brands’ D2C ecommerce sales are decelerating. We estimate their growth will slow to 17.5% this year, which is down from 19.8% last year, and 40.0% in 2020.
Focusing on profitability: While many D2C brands have viewed their stores as showrooms, Brooklinen has been careful to ensure they can turn a profit.
The big takeaway: Brooklinen and Parachute’s initiatives represent the two brands’ efforts to evolve from upstart D2C brands into traditional brands.
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