How Warby Parker is Succeeding with a Thoughtful Omnichannel Strategy

It seems rarely a day goes by that we don’t hear about a high street retailer forgoing the brick-and-mortar world and establishing themselves as an online brand. Even if they don’t abandon the high street entirely, and adopt an omnichannel model, the direction of travel is usually away from purely physical retail and towards ecommerce.

The Decline of the High Street

Data from the United Kingdom, a country with trends which usually reflect those here in the US, more than 8,700 chain stores closed their doors for good in the first six months of 2021.

The biggest losses were felt in fashion retail which lost over a thousand stores during the period, but restaurants, department stores, and furniture retailers also saw a significant decline. A few retail sectors such as convenience stores saw modest increases in numbers, but these were far outstripped by the number shutting up shop.

Closures also outstripped openings when separated by location. The high street saw the greatest disparity between openings and closures, but they were also significantly outpaced when in the standalone, shopping center, and retail park segments.

With so many closures of physical stores and so much success being reported in the online retail world, it’s easy to understand why so many brands are increasing their focus on ecommerce. Which is what makes it all the more surprising to see a previously online focused retailer suddenly pouring resources into opening a number of physical locations.

Warby Parker

This is exactly what US based direct to consumer eyewear brand, Warby Parker did in 2021 prior to going public on the New York Stock Exchange with a valuation of a staggering $3 billion evaluation.

Launched as an online brand back in 2010, Warby Parker has since lunched into an aggressive expansion phase with a new focus on its retail footprint. Warby Parker had more than 145 stores as of the end of June 2021 and planned to open 30 to 35 additional locations over the following year with stated intentions to expand at the same pace over each subsequent year. While Warby Parker’s ecommerce business accounts for 60% of net revenue, it is not looking to forgo the remaining 40% which came from physical stores.

"Our retail stores are highly productive," said the company in an SEC filing. "Average sales per square foot clocks in at $2,900. Apple, for comparison, has been reported to be the highest-grossing retailer in terms of this metric, bringing in more than $5,500 in revenue per square foot."

It’s too early to tell whether Warby Parker’s bet on physical will pay off, but the success or failure of its public offering will provide some evidence either way. Other online focused retailers will no doubt be watching closely to see which way the wind blows.

A Thoughtful Brand

Warby Parker has never been a retailer unafraid to break the mold and step outside of what’s expected.

The company operates one of the largest Buy a Pair, Give a Pair programs in the world through which it gives a free pair of glasses to someone in need for every pair it sells, either online or in person. Since the retailer has been operating the program, Warby Parker has distributed over eight million pairs of glasses.

It also recently changed its status to that of a public benefit corporation which forces it to balance the interests of its shareholders with those of stakeholders and the communicates it serves and are/or are impacted by its business operations. Warby Parker has a B Impact Score of 85 which exceeds the requirement for B Corp certification – the median score for ordinary businesses is just 50.9.

"Warby Parker is constantly asking how they can do more and make a greater impact and that starts by reimagining everything that a company and industry can be," says a statement on the B Corporation website. "The lifestyle brand aims to demonstrate that a business can scale, be profitable, and do good in the world without charging a premium for it."

Warby Parker stores are also individually decorated by local artist from the communities in which they are located.

Final Thoughts

The world of physical retail is in a precarious place right now and it’s hard to tell in which direction the pendulum will ultimately swing. With so many brands abandoning or at least reducing their focus on the high street, its rather refreshing to see a retailer moving in the opposite direction as we can see from Warby Parker.

We’ll have to wait and see if the move pays off.

The apparent death of the high street and omnichannel retail are sure to be part of the conversation at eTail Connect West 2022, taking place in September at the Hilton La Jolla Torrey Pines, CA.

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