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Could UpWest potentially pave the path for Express?

DTC brand expanding with physical stores and potential partnership with a prominent retailer in the pipeline, which could be the missing piece for the struggling specialty retail sector this year.

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DTC brand to establish brick-and-mortar stores, plans a collaborative venture with a prominent...
DTC brand to establish brick-and-mortar stores, plans a collaborative venture with a prominent retail giant in the upcoming year, potentially offering a much-needed boost to the niche retail sector.

Could UpWest potentially pave the path for Express?

UpWest Debut Proved Timely for Struggling Express

In November 2019, Specialty retailer Express, Inc. introduced its new millennial-focused brand, UpWest, during a challenging financial and strategic period for the company. Tim Baxter, CEO of Express, stated at the launch, "While our primary focus remains on returning the Express business to long-term, profitable growth, UpWest brings something new and exciting to the market."

UpWest centered around casual apparel, loungewear, and sleepwear for men and women. Coincidentally, the pandemic arrived just a few months later, leading consumers to favor comfort-centric clothing. With the addition of home goods and wellness products, UpWest's offering became even more aligned with quarantined consumers' requirements.

The brand's mission to "comfort for good", aiming to positively impact people and the planet, closely matched consumers' growing desire for purpose-driven products. As per the IBM Institute for Business Value, the initial segment of consumers preferring products based on alignment with their values accounted for nearly half of shoppers.

Despite economic turbulence, UpWest reported substantial success. By May 2021, the brand announced a significant 68% growth in Q1 sales, boasting 11 stores with four more locations planned for the year. Baxter acknowledged, "UpWest continues to gain momentum and is well positioned to be a growth engine for our company."

Launching around the same time, Express was placed on a Retail Dive watchlist due to its elevated bankruptcy risk. A 10% corporate workforce reduction at the beginning of the year was followed by the closure of 100 stores and a turnaround strategy. The company further cut another 10% of its workforce after losing $90 million and reporting a 34% net sales decrease. According to analysts in early 2021, Express was "hemorrhaging cash."

Despite these challenges, Express persisted, implementing changes such as Express Edit stores with a smaller footprint and curated product selection. The concept showed promise, gaining interest from shoppers and demonstrating potential to reshape Express' retail strategy. Baxter suggests, "We're coming into these locations, we are gaining new customers through the physical store location, and our digital business in those surrounding zip codes is accelerating pretty significantly."

Emulating DTC companies, UpWest chose to incorporate physical stores as a means of sales and marketing. According to e-commerce data analysis company PipeCandy, omnichannel presence, a combination of online and offline presence, is the norm for DTC brands. While some question the corporate brand's ability to duplicate the success of DTC companies, UpWest has been thriving with its focus on comfort and sustainability.

For now, UpWest continues to grow, pushing forward with sustainability initiatives. The brand opened two stores in New York and partnered with environmental nonprofit GrowNYC to create a community garden in Brooklyn, contributing to charitable efforts throughout the year. The future for UpWest remains uncertain, but its focus on purpose-driven goods has been crucial to its success thus far.

  1. The pandemic's arrival in early 2020 aligned perfectly with UpWest's focus on casual apparel, loungewear, and sleepwear, making consumers favor their comfort-centric clothing.
  2. UpWest's mission to provide "comfort for good" resonated with consumers, reflecting their growing preference for purpose-driven products.
  3. Amidst economic turbulence, UpWest continued to thrive, reporting a significant 68% growth in Q1 sales by May 2021.
  4. Express, on the other hand, faced several challenges, including elevated bankruptcy risk, corporate workforce reductions, and store closures.
  5. In an attempt to reshape its retail strategy, Express implemented the Express Edit stores concept, which showed potential in attracting new customers.
  6. Emulating Direct-to-Consumer (DTC) companies, UpWest chose to incorporate physical stores as a means of sales and marketing, with the omnichannel presence being the norm for DTC brands.
  7. UpWest's focus on sustainability initiatives, such as community garden partnerships, has been essential to their success so far, despite uncertainties in the future.

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