From DTC to Retail Shelves: 3 Brand that made the leap.

Most of my experience is with brands who have built their business starting at retail, well before direct-to-consumer (DTC) was logistically possible and financially feasible. Now, DTC brands have revolutionized the retail industry, offering consumers convenience, personalization, and innovative products, at competitive prices. However, the DTC model does have its limitations on reaching an entire addressable market.

As competition in the digital space intensifies, customer acquisition costs rise, and they look to scale their reach, many DTC brands are expanding into traditional retail channels. Some categories are still predominantly purchased at traditional retail, so if they want to continue to drive growth they need to be present in all the channels in which their shopper looks to buy. Here are three inspiring stories of DTC brands that successfully transitioned to retail shelves, and the lessons they offer.

1. Casper Sleep: Disrupting the Mattress Industry

Casper Sleep launched in 2014 with its "mattress-in-a-box" concept, shaking up the traditional mattress market. By leveraging a strong DTC model, Casper quickly gained popularity and scaled to $300 million in revenue by 2019. However, high customer acquisition costs and stiff competition pushed Casper to explore retail partnerships. Today, Casper mattresses are available at major retailers like Target and in Sleep Country (Canada), allowing the brand to reach new audiences while complementing its online presence.

2. Quip: Expanding Oral Care to Walmart

Quip began in 2015 as a subscription-based oral care brand, delivering electric toothbrushes and replacement heads directly to consumers. Recognizing that many shoppers still prefer buying oral care products in physical stores, Quip partnered with big-box retailers such as Target and Bed Bath & Beyond before expanding into over 3,000 Walmart locations. This move not only increased visibility but also reinforced its subscription model by engaging customers across both online and offline channels.

3. Parachute: From Bedding to Nordstrom

Parachute started as a DTC bedding brand focused on offering high-quality linens at competitive prices. As competition grew in the digital space, Parachute expanded into physical retail with pop-ups and partnerships like its presence at Nordstrom. This shift allowed Parachute to diversify its product offerings—adding towels, robes, and furniture—and connect with customers who value tactile shopping experiences.

Lessons for Brands Looking to Scale

1. Meet Customers Where They Are: Expanding into physical retail allows brands to reach new demographics who prefer shopping offline. For example, Quip recognized that many oral care customers still rely on big-box stores for purchases so they can touch and feel the product before buying. Understanding consumer behaviour is critical.

   
   

2. Leverage Omni-channel Strategies: Combining online and offline channels creates a seamless customer experience while maximizing reach. Casper's partnership with Target complemented its online presence and provided additional avenues for sales.

   
   

3. Adapt Based on Data: Successful transitions are driven by data insights about customer preferences and location opportunities. Parachute's store openings were informed by data collected from its digital operations.

   
   

The underlying concept here is to understand the market importance of each channel (how much of a category's given sales are done in-store vs. online). Shopping habits are slow to change, so although you intend on reaching a broad market online, some consumers are not even looking for your category or be willing to buy online. This puts a cap on your growth if you focus exclusively on one channel. For DTC brands looking to scale sustainably, these lessons underscore the importance of flexibility, omni-channel thinking, and leveraging customer insights to unlock the next pillar of growth.