Warby Parker remains committed to eventually opening 900 brick-and-mortar stores nationwide, of which it now operates around 256.
In 2024, the average American is projected to buy nearly four pairs of eyewear. For Warby Parker, this trend represents a substantial opportunity to enhance its market presence both online and in physical stores.
In early August, Warby Parker reported its highest quarterly online sales growth since early 2021, with a 4.4% increase from the previous quarter. This boost was partially fueled by a significant investment in brand awareness, which has revitalized demand for its popular home-try-on eyeglass frames. Despite this success in the digital realm, the company remains committed to expanding its physical footprint, aiming to open a total of 900 stores nationwide (currently, it operates around 256 locations).
So, what do the company’s visionaries see in bricks?
While physical stores involve higher costs and require more intensive management compared to online operations, Warby Parker’s brick-and-mortar strategy complements its digital business. In fiscal 2023, despite a 3.1% decline in online sales, revenue from physical stores grew by an impressive 21.7%. This reflects a broader industry trend where physical eyewear sales are expected to make up 74% of total revenue in 2024, with online sales accounting for 26%, according to Statista. This preference for in-person shopping is partly because customers enjoy trying on multiple frames and the tactile experience of physical stores.
Warby Parker’s hybrid business model—leveraging both online and in-store channels—positions it advantageously against competitors. Its online platform faces competition from other digital eyewear brands like Pair Eyewear, Zenni Optical, and even Amazon. Nevertheless, physical stores provide a unique edge by offering impulse-buying opportunities and in-person consultations, which can drive additional sales.
The physical stores also serve an essential function in offering vision exams and personalized consultations. Although Warby Parker uses AI for virtual vision tests online, many customers prefer the accuracy and reassurance of an in-person exam. According to the Review of Optometric Business, 85% of prescription glasses are purchased in person. In-store opticians cater to this preference, although the higher salaries for these professionals can impact profit margins.
Moreover, Warby Parker’s physical stores offer valuable insights into customer behavior. Store staff can observe and record customer preferences, and access detailed online profiles through the company’s self-developed sales software, Point of Everything. This system enables employees to follow up with personalized emails that include purchase links for frames customers tried on in-store.
Overall, the blending of online and offline strategies allows Warby Parker to cater to diverse consumer preferences and stay competitive in the evolving eyewear market. Its initial success with a direct-to-consumer model disrupted the eyewear industry, creating a strong brand presence that continues to be its most significant asset. Whether through digital innovation or physical retail expansion, Warby Parker’s approach underscores the importance of balancing both online AND physical channels to drive growth and maintain its competitive edge.
