Dive Brief:
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L.L. Bean is expanding its reach in North America on several fronts, following its second-strongest revenue results ever, the outdoor retailer said by email this week.
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Later this year, the retailer will open two new stores in Massachusetts not far from Boston, and two in greater Montreal in Canada, along with a French-language e-commerce site in Canada, according to a company press release.
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Wholesale is also expanding, with department store Dillard’s, Dick’s Sporting Goods-owned Moosejaw and 10 independent specialty retailers in the Southeastern U.S. added to the roster.
Dive Insight:
L.L. Bean joins a growing number of retailers and brands demonstrating an appreciation of wholesale.
Several DTC brands, after touting the strategic and financial advantages of selling directly to customers, have turned to wholesale to boost growth and customer acquisition. And giants like Nike that had made moves to shrink their wholesale operations are again growing them.
Wholesale is turning out to be a channel with opportunities for revenue growth and brand expansion. Moreover, the promised margin windfall from DTC sales by and large have not materialized, according to BMO Capital Markets research.
In a statement, L.L. Bean CEO Stephen Smith emphasized that wholesale is an indispensable part of being “omnichannel.” The new stores and wholesale partnerships will mean that L.L. Bean goods will be available in more than 70 new storefronts, per the company’s release.
“We’re grateful to be in a position to expand our retail presence and build new wholesale relationships in order to serve more customers,” he said. “Everything we do is in support of our company purpose to enable people to experience the restorative power of being outside, and these new ventures will ensure we’re able to fulfill that purpose for years to come.”
L.L. Bean operates 56 stores in 19 U.S. states, 25 stores in Japan and 13 stores in Canada in partnership with Jaytex Group.
