Luxury retail brand closing most of its stores, no bankruptcy | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

Many newer retail brands have struggled with how to mix stores and digital sales. Many online only companies ultimately had to open brick and mortar locations because shoppers won’t buy certain things if they can’t touch them.

The challenge, is that physical stores cost a lot of money. That tends to cause problems with the digital only model which is at least partially based on pricing.

Multiple mattress companies that had intended to be digital only brands ultimately had to open stores. That’s because people aren’t about to spend thousands of dollars on a mattress without knowing if it’s comfortable.

Yes, can have a good return policy, but nobody wants to deal with having to return a mattress. It’s very similar with things like eyeglasses and even clothes.

There’s a reason why digital sales have hovered about 15% of total retail sales. People still like shopping in person.

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Even when it comes to easily returnable items, it’s still easier to see the item in the store, be able to touch it, or otherwise experience it, and then buy it. Sure, there might still be buyers remorse, but in person sales for bigger ticket items are much less likely to have a return.

One luxury retailer has decided to close the majority of its retail locations to focus on wholesale and its website.

The death of Be Bath & Beyond has left some room open in the linens space.

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Luxury retailer searches for its audience

Parachute may not be that well-known a retailer, but the chain (which does not sell the beloved 80s pants) has carved out a space for itself. It’s a luxury linens and bedding brand that the company describes as “Linens for easy living.”

That somewhat meaningless, so it offers a little more detail.

“Originators of laid-back elegance in the bed and bath. Experts in softness. Our cult-favorite linens are designed in Los Angeles and made with love by craftspeople around the world,” it shared on its website.

Basically, it’s a higher store that tries to wrap itself in a wellness model.

More retail:

“We believe that sleep is the truest form of wellness. That everything’s better after a hot shower. And hitting snooze isn’t lazy – it’s self care. So we’ve spent years perfecting the basic white sheet, the everyday fluffy towel, the life-changing mattress. To get back to the basics of relaxed wellness. To be your key to better days ahead,” it added.

So, pricey towels, sheets, and mattresses that you would think would benefit from people being able to touch them.

Parachute closing most of its stores

While Bed Bath & Beyond and Linens and Things were mass market, not luxury chains, both companies failed pretty miserably. Both use very large “box” stores to show off their merchandise and both ended up being liquidated after a bankruptcy filing with all of their stores closed down.

Parachute was using a similar model, but has decided to make a major change in course. The retailer is closing 19 stores which will leave it with 7 still open, according to a report from RetailDive.

The chain began quietly closing locations earlier this year and its new focus will be deepening its ties to partners including Target. Parachute offered an exclusive collection with the mass market retail chain earlier this year.

Target trumpeted the deal before it launched in April.

“Get ready to sleep in softness and towel off in style. Parachute, the beloved home brand known for its luxurious bedding and bath items, has created a new, exclusive collection just for Target guests. Parachute for Target launches April 27 with more than 200 cloud-like bedding and bath linens. Prices range from $12-$199, with most items under $90 — a value that can only be found at Target,” the company shared at the time.

Parachute also has distribution with Nordstrom and it used to work with Crate and Barrel.