Destination XL Group uses stores to help promote 

DXL’s online customer base is growing. On March 16, DXL told investors its digital commerce sales grew 58.3% from fiscal 2019-2022. Digital commerce sales are those that originate online through DXL.com, at the store level through its Universe platform, or through a third-party marketplace. DXL also sells its private-label products on Amazon.com Inc., Walmart Inc. and Target Corp. marketplaces.

Direct-to-consumer website sales increased 9.9% in fiscal 2022, which ended Jan. 28, compared with fiscal 2021. For the fourth quarter of fiscal 2022, direct sales to the website were $49.2 million, up 35.2% compared with $46.8 million a year prior. DXL online sales represent 34.2% of DXL’s total retail sales.

Online conversion is less than 5%. In-store conversion falls within mid-40%, Stratton says.

More than half of DXL’s total sales in 2022 came from mobile devices, Stratton says.

DXL ranks No. 458 in the Top 1000, Digital Commerce 360’s database of the largest North American online retailers by web sales.

Managing in-store and online inventory

The retailer’s distribution centers remain the most cost-effective way to ship merchandise. But store locations also serve as satellite fulfillment centers when necessary. “Many of the stores do that,” he says.

“The stores all have the capability to fulfill direct orders, but we choose to use stores as a last resort to the distribution center,” he says. This is particularly useful in offloading clearance inventory that might otherwise sit unsold, he says. But, the strategy behind in-store is to promote the experience for the customer, he says. “Not process inventory.”

DXL sells a large variety of brands and assortments. Over the last two years, the retailer has cutits assortment of brands it sells, he says.

“There were a number of smaller brands that just did not make up a more meaningful position in the assortment,” he says. “We’ve had to eliminate some noise.”

Instead, Stratton says the retailer is focusing on its exclusivity agreements, such as owning the Nautica apparel brand to sell in big and tall sizes both in store and online. Other brands include Polo Ralph Lauren, Vineyard Vines and Robert Graham. A curated assortment for what Stratton calls the underserved customer. About 50% of DXL’s inventory is its private-label brands, and designer collections comprise the other half.