Opening Retail Stores vs. Going Wholesale: What the Numbers Say
OPERATORS · with Curtis Matsko, Matt Bertulli, Mike Beckham · July 1, 2026 · 76 min
Summary
This episode breaks down the critical decision between opening owned retail stores and pursuing a wholesale strategy for consumer brands. It provides a direct comparison of the competency, capital, and control required for each model, highlighting why aligning your channel strategy with your product category is paramount for long-term success. Ecommerce operators will gain actionable insights from real-world examples and expert opinions on channel selection and its impact on growth and private equity appeal.
Key takeaways
Choosing the wrong distribution channel can be nearly impossible to recover from, making product-channel fit the most critical strategic decision.
Owned retail stores demand significant capital investment and developed operational competencies in areas like leasing, inventory, and staffing, but offer high brand control and customer data.
Wholesale provides wider market penetration and leverages distributor infrastructure, but requires strong buyer relationships and may dilute brand control and margins.
Both retail and wholesale strategies can attract private equity, but investors assess omnichannel brands based on their ability to scale efficiently across chosen channels.
Analyze your product category, capital availability, and desired level of brand control to determine whether owned retail or wholesale is the optimal primary growth channel.
Should you open your own stores, or let the big retailers do the heavy lifting? Curtis Matsko (CEO, Portland Leather Goods), Matt Bertulli (CEO, Pela Case & Lomi), and Mike Beckham (CEO, Simple Modern) go head to head on one of the biggest channel decisions a consumer brand will face. Curtis went from a spite-signed lease to 16 owned stores, while Mike turned a $9 million Sam’s Club bet into 10,000 wholesale doors. This episode breaks down these two different paths and what each model actually costs you in competency, capital, and control, why the wrong channel for your product category is almost impossible to recover from, and what private equity is really looking for when they come knocking on an omnichannel brand. Powered By Fulfil https://9ops.co/fulfil Saras Analytics https://bit.ly/9OP-Ytdesc Postscript https://9ops.co/postscript Richpanel https://9ops.co/richpanel Northbeam https://www.northbeam.io/ Aftersell https://9ops.co/4i3bb5 Operators Newsletter https://9operators.com/
What does this episode say about retail & omnichannel?
Choosing the wrong distribution channel can be nearly impossible to recover from, making product-channel fit the most critical strategic decision.
What does this episode say about dtc strategy?
Owned retail stores demand significant capital investment and developed operational competencies in areas like leasing, inventory, and staffing, but offer high brand control and customer data.
What does this episode say about supply chain & operations?
Wholesale provides wider market penetration and leverages distributor infrastructure, but requires strong buyer relationships and may dilute brand control and margins.
What does this episode say about finance & fundraising?
Both retail and wholesale strategies can attract private equity, but investors assess omnichannel brands based on their ability to scale efficiently across chosen channels.
What does this episode say about retail & omnichannel?
Analyze your product category, capital availability, and desired level of brand control to determine whether owned retail or wholesale is the optimal primary growth channel.
