Dive Brief:
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Columbus, OH-based Express Inc. outlet stores did double the business it expected, the retailer said Wednesday. Outlet store sales for the year will be between $55 million and $60 million, compared to estimates of closer to $30 million, according to CEO Michael Weiss.
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This year the retailer beefed up its outlet-store strategy, adding outlet stores and converting full-price stores, for a total of 24 new stores so far this year and 37 by year’s end. The company says it will operate 70 outlet stores by 2015 and will have 150 when all is said and done.
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The company expects most sales growth to come from these stores and online, according to Weiss.
Dive Insight:
This is a strategy that will intrigue many. Express Inc. CEO Michael Weiss called his customers’ reactions to the outlet stores “immediate and enthusiastic,” and the sales numbers back him up.
But with the retailer finding its best potential for growth in outlet stores, which feature much more specially made (cheaper) clothing than first-run overstocks, it is essentially becoming more of a discount clothing retailer. There could be consequences of that to Express’s brand in the long term.
