As retailers struggle to find the balance between online and physical shopping, men’s clothing company Bonobos is taking an interesting approach: ditching in-store inventory all together.
Yes, when you walk into one of Bonobos’ new Guideshops, you’ll be able to try on clothes, see different color schemes in person and speak to salespeople about fits, styles and more. But you won’t be able to leave the store with your goods.
Instead, you’ll order what you want online from the store, and will receive those items within one or two days at no extra charge. It’s a big bet by Bonobos that people are so accustomed to online shopping that they won’t mind the wait, but one that could pay off in a big way.
“We think service is more important than instant gratification,” Andy Dunn, founder of Bonobos, said to USA Today. “What’s the benefit of walking out of the store with a bag of two shirts and some pants if it’ll be on your desk the next day?”
USA Today points out that many shoppers would seem to agree. A recent IBM survey found that nearly half of all online shoppers like the physical experience of shopping in-store, but then prefer to order online. More than one-third of online shoppers buy from online-only retailers as well, which puts physical stores at a big disadvantage.
Another plus for Bonobos – and others who’ve adopted this retail model, such as Warby Parker and Gap’s Piperlime Internet label – is the serious savings they can recoup by forgoing traditional inventory and supply costs.
“What’s fun about our model is that we’re able to deliver the same productivity with a fraction of the typical inventory investment,” Dunn says. “When you have to stock a big store, you have people running around folding clothes and stocking things. You can’t prioritize what’s most important.”
Bonobos has launched its Guideshops in New York, Chicago, Boston, San Francisco and Washington, D.C. thus far, and plans on expanding to five more sites by the end of 2013.
“The whole idea of what’s convenient is changing,” Dunn said.
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