Bonobos raised $55 million in venture capital funding, for a total of $128 million, with plans to expand. The online menswear brand plans to use the investment to grow from 10 to 40 physical stores in the United States by 2016.
Bonobo's physical locations do not actually sell apparel but instead are 1,500 sq. ft. showrooms where customers can try on items and get advice from "guides" before placing an order online. All items are shipped free of charge to the shopper's home. Apparel can also be found in some Nordstrom outposts. Nordstrom bought a minority stake in the online company for $16 million in 2012.
Bonobos learned early on that an online presence could be strengthened by a physical presence.
"We said we would never be offline, and then, wait a second," Andy Dunn, co-founder and CEO told the New York Times. "We hit a big turning point. We realized offline really works."
The New York City-based retailer opened store fronts in Dallas last month.
In February, the company launched womenswear under the name AYR, six years after the original menswear line debuted, reported Crain's New York Business. In the first 100 days, the brand sold $500,000 worth of merchandise, which was a faster rate than the men's label.
-See this New York Times story
-See this Crain's New York Business article
Amazon, Walmart and Warby Parker among retail's most innovative
Warby Parker can't find the right POS system, so it's building its own
Online retailer Wayfair launches new product line, printed catalog
Loehmann's to return as online outlet
Staples speeding to market with mobile sites, tests SMS