After 16 years selling mostly online and through other retailers, Melbourne accessories brand Bellroy is opening its own stores. The first will be on Little Collins Street in the Melbourne CBD, with New York and Kuala Lumpur to follow within about six months.
CEO Lina Calabria says those three are only the start. Internally, the plan works out to roughly 20 stores over five years, with more in Australia and the US before a push into Asia and Europe. Sydney is on the list too.
Bellroy was founded in 2010, sells in more than 150 countries and booked $146 million in revenue last financial year. It is aiming for growth of 10% to 20% this year. Other retailers currently account for about 30% to 40% of sales.
Calabria says the stores are meant to make money, not act as brand showrooms, and should pay back their fit-out within three years. Staff called ‘carry guides’ will help shoppers choose bags, and packing stations will let them load a bag before trying it on.
What it means for your money
Even online-first brands are returning to physical retail, so expect more try-before-you-buy experiences. If you run a small retail business, it is a reminder that a shopfront needs to pay its way within a few years, not just build awareness.
Source: SmartCompany