Birchbox continues physical store pilot

Birchbox announced that it will open two additional brick-and-mortar locations in 2016, one dedicated to men's products.

The retailer first launched online in 2010 and opened its first brick-and-mortar store in New York's SoHo neighborhood last year. The 4,500 sq. ft. flagship is a duplex filled with beauty products and looks like a giant, candy-colored box, the company's signature look, Fox News reported.

The two new locations have yet to be decided, and the company is asking customers to vote on the decision by entering zip codes. Based on results, Birchbox will open temporary stores in three cities this summer and then decide where to set up permanently after reviewing performance.

Birchbox was originally set up as a subscription service—for $10 a month, or $110 a year, users are sent boxes filled with product samples. Consumers who are members spend  38 percent more on average than shoppers who are not members. However, only 35 percent of the company's revenue comes from the purchase of full-sized products on the site. The company hopes that providing new physical spaces will further educate consumers about Birchbox's full-size offerings and make new customer acquisitions.

"A customer who knows the company and comes in the door has three times the value when she touches the Birchbox store than she would in a normal life cycle with us," founder Katia Beauchamp told Fox News.

Last summer Birchbox joined a host of previously online-only retailers that found a huge benefit to creating a physical store presence, including brands such as Bonobos and Rent the Runway.

For more:
-See this Fox News article

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