Bedding brand Boll & Branch raised $100 million this week from privacy equity firm L Catterton.
The retailer, which launched in 2014, plans to use the funds to fuel its growth, particularly to open more stores, says founder and CEO Scott Tannen.
The retailer currently has one store near its New Jersey headquarters. With the new capital, Boll & Branch has an “aggressive” strategy to open up several stores in 2020 and plans to have more than a double-digit number of stores within the next few years, Tannen says. No stores are in the works for 2019, he adds.
Why stores make sense for Boll & Branch
Physical stores give consumers a chance to touch Boll & Branch products, which is a key component in the bedding category, Tannen says. “It allows for much deeper engagement with our product,” he says. “Customers come in and try our mattress out in person, maybe lay on our pillows and then continue to purchase online.”
Stores make sense for the retailer given the success of its current store, which is “very profitable” and a multi-million dollar enterprise, Tannen says. Plus, the store’s average order value is about two to three times what its AOV is online, he says.
Boll & Branch has not yet announced where it plans to open stores, but the location will likely be where the brand has previously marketed itself and has good brand awareness, he says.
“We have done a lot of local media in the Washington, D.C. market, and we have high brand awareness in that area, so it wouldn’t be a surprise if we open a retail presence there, as an example,” Tannen says. “And the same can be said for a number of cities across the country.”
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