Instead of viewing physical locations as the primary growth engine, reframe them as brand "touchpoints" or destinations. They build customer trust and awareness that feeds a more scalable e-commerce or wholesale business, which becomes the true engine for national growth.

Despite starting in what she considered an "antiquated" field, founder Sarah Sugarman found physical catalogs to be a pivotal growth driver. They allow customers to experience the aspirational lifestyle brand in their own homes, building trust and driving sales in a way digital channels can't replicate for high-ticket items.

To enter physical retail, first test markets with low-cost local events. Next, 'walk' by running trunk shows and pop-ups with wholesale partners. Finally, 'run' by using short-term leases in retail incubators to validate a location before committing to expensive 10-year leases.

For emerging brands, the path to retail shelf space is indirect. Instead of pitching buyers, focus on building a powerful direct-to-consumer (DTC) business and capturing the attention of younger demographics online. Retailers, desperate to attract these consumers, will then come to you.

For a premium DTC brand, broad retail expansion is a trap that reduces margins, invites knockoffs, and cheapens the brand. Instead, selectively partner with only a few key, trusted retailers to reach new, targeted audiences without overexposing the product and sacrificing its premium positioning.

For CPG brands, a physical retail presence, even with lower margins, should be viewed as a customer acquisition strategy. It provides crucial visibility and trial, driving customers to your higher-margin direct-to-consumer website for subsequent purchases and retention.

Coterie treats its physical retail presence not just as a sales channel, but as a marketing tool. A well-placed product block acts like a billboard, driving discovery and funneling 10-12% of new customers back to their primary D2C subscription business.

For brands with both physical and wholesale channels, physical stores should serve as marketing assets. Instead of scaling the number of locations, invest heavily in making a few stores so visually appealing and experience-driven that customers are compelled to share on social media, generating free buzz.

Despite opportunities, Feel Goods has passed on retail launches. Their strategy is to first build a "massive community" and brand recognition through direct-to-consumer channels, ensuring pre-existing demand when they eventually enter stores for a higher chance of success.