Jared

What do you see as the main risks in this proposal?

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Lower quality experiences than traditional retail

Increased costs as we learn how to run retail stores

Potential anti$-$competitive legal repercussions

Reduced flexibility in where we sell watches

In opening retail stores, we would create small branded experiences in malls and shopping areas selling our watches exclusively. Given the small size of each of these stores, the proposed cost, on average, is roughly $$500,000$ per store. We would initially open a few near our headquarters and aim to expand nationally to major retail centers.

Strategies for Retail Stores

Maintain $50\%-75\%$ margins by pricing in line with other retail outlets

Limit the number of retail partners that refuse to carry our products

Utilize a small store size in popular locations

Create a luxurious feel within the store

Train and compensate employees well to increase customer service