Customer acquisition costs on paid social have been rising for years. The channels that drove efficient growth half a decade ago are harder to justify today. Physical retail is starting to look genuinely interesting to founders who would never have considered it before.
But there's a gap between finding physical retail interesting and actually making it work. Most e-commerce operators approach the move with a revenue mindset they've carried from online. They measure store performance the way they measure a channel. And they treat the first store like a proof of concept rather than v1 of a repeatable system.
The brands that get it right do three things differently.
In this playboook, based on a conversation with Guy Nappa, COO of Oz Hair & Beauty, we cover three things e-commerce operators need to know before making the move into physical retail:
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