Collars & Co is well known for its stylish and comfortable dress shirts with innovative collars. They began their journey as an online-only startup. Most online apparel brands grapple with return rates as high as 40-50%, and Collars & Co likely experienced similar challenges as online clothing brands.
Additionally, mobile e-commerce conversion rates average just 0.55%, and cart abandonment rates around 85.65%. These industry-wide issues could have also impacted Collars & Co’s online performance.
The company’s founder realized that to reach a broader audience and reduce returns, offering a more tangible shopping experience was essential.
“As an online business, we’re seeing rising acquisition costs in online marketing,”
A Vision for Expansion – The Move to Brick-and-Mortar
The founder of Collars & Co. envisioned expanding the brand’s presence by opening a physical store. This store would serve as a flagship location, try-on products, and receive personalized service.
The goal was to create a seamless blend of online and offline shopping, enhancing customer loyalty and increasing sales. “We’re still driving the majority of our business through Facebook and Instagram. But we’re always looking to find new customers and channels,”. Baer, the founder, mentioned in an interview.
Testing the Waters
To reduce risk, Collars & Co decided to test the waters by first opening a pop-up store. The pop-up was strategically placed in a trendy area with high foot traffic. They target professionals who are the primary audience for their shirts.
“Baer said Collars & Co. had tested the retail waters with a pop-up at the Galleria at Tysons Corner in Virginia last November and was pleased with the results.”
The store was designed to reflect the brand’s minimalist and stylish aesthetic, offering a curated selection of their best-selling products. The founder also integrated technology, such as virtual fitting rooms and online order placements in-store.
Opening the Permanent Store Co-partnering with LEAP
However, this move was not without its challenges. Opening a physical retail space came with high costs and risks. Especially in a competitive market dominated by established brands with significant resources.
Recognizing these challenges, Collars & Co partnered with LEAP, a company specializing in helping digital brands transition into physical retail spaces.
LEAP’s expertise helped mitigate the risks by handling key aspects such as finding the right location, hiring staff, and managing the store’s operations. “The opportunity popped up and we jumped on it, But when it came to a permanent store, he decided to go with the experts.” (quoting from an article)
Encouraged by the success of the pop-up, Collars & Co. made the bold decision to open a permanent store. This store was more than just a place to sell shirts. It was a realization of the founder’s dream to bring the brand closer to the people who loved it.
“The store has a bank of windows that will allow the brand to showcase its offering, and its location next to Nordstrom is a bonus. “We align well with the Nordstrom customer,” he said, adding that Collars & Co. attracts a “slightly older” man”
The new physical store opened to mixed reactions. Some customers were thrilled with the opportunity to finally try on the shirts they had admired online. But some people expected more. “The colors & styles of clothing were exactly what I was looking for, but it would’ve been nice to have more to choose from,” one customer noted, highlighting a common sentiment.
Enhancing Customer Experience
The competition from nearby established retailers added to the challenges, forcing the founder to adapt quickly. Adjustments were made to inventory, customer service was enhanced, and promotional events were rolled out to drive traffic and boost sales.
LEAP’s support continued to be crucial in ensuring that the store operated smoothly and effectively in a highly competitive environment.
“Update (from 2.5 to 5 Stars) Finally found the time and access into Collars & Co and could not be more pleased with the results. Reached out via LinkedIn and got a response back from the office of the Founder & CEO within minutes and replaced the two damages shirts – no questions asked. I have the white one on today, so no pics of that.Well done Collars & Co. and I will gladly continue to be a walking billboard of this fantastic designed shirt!”
What is the best
Through this journey, the founder realized that the physical store was not just about selling products. It was about building a community and creating a space where the brand’s story could be shared in a more personal and impactful way.
The in-person feedback provided invaluable insights into what customers wanted, which could also improve the online shopping experience.
Baer understood that the brand could thrive in a physical space by leveraging its online strengths, such as personalized marketing and customer data, to offer a unique and tailored shopping experience.
Growing Beyond the First Store
The success of the first permanent store led to further expansion. Collars & Co. opened two more stores, one in Pennsylvania and another in Florida. It further strengthens the brand’s presence and reaches more customers. These new locations have allowed the brand to solidify its position in key markets, demonstrating the success of its strategy to blend online and physical retail experiences.
Feature image Credit @ Sun Sentinel
