How DXL Group creates community through unique retail experiences
Having experienced some of the best years in its history, DXL Group is capitalizing on its successes. Recent growth has cemented it as the most comprehensive big and tall retailer in the US. As well as expanding its operations with new locations, the business is also consolidating its marketing presence to emphasize what differentiates it from the competition. DXL Group offers a holistic, experience-led retail service for large and tall men whose needs are often not met by traditional retailers.
Chief Executive Officer, Harvey Kanter, elaborates on what makes the company so unique. “Most retailers just proportion up for larger sizes, that is, make the same product in the same proportions just ten or 20 percent bigger. This means that larger clothes from traditional retailers often don’t fit well, with inadequate room in the front of a top or baggy cuffs in a shirt, whereas our company has a unique and proprietary fit which creates products in the shapes customers need.
“We sell everything a big and tall customer would want to wear, including tailored clothing, casual and sportswear which makes up about 80 percent of our revenue, as well as hats, watches and shoes,” Harvey adds. “We provide products from leading brands such as Ralph Lauren, Hugo Boss, and Carhartt, but also several products that cannot be found elsewhere; around 30 percent are under exclusive license, and around 50 percent of our revenue is raised by our own private brands.
“On top of the unique fit we bring to market, we offer a curated selection of products that allow the consumer to wear the clothes and accessories he wants in the style he chooses.” Harvey goes on to explain how the company’s wrap-around approach has led to the evolution of its stores. “By opening up the layout of a store and designing it around a central island, we have transformed the service from a transactional approach to a more consultative interaction. Store associates are better able to offer counsel, providing the customer with direction on the sizes and styles he is seeking.
“Each of these islands has a digital interface which maintains an updated stock list of what’s in store but also online, which is obviously a much greater range than we are able to carry in store,” Harvey continues. “When a customer finds a shirt in the perfect size for example, our store associates can show him five other shirts in the same size. It significantly streamlines the sales experience and enables our associates to expose our customers to a greater range of complementary products. It can also seamlessly combine in-person and online orders into one transaction.”
DXL Group is also implementing other transformational technological solutions. Harvey outlines how FITMAP will further transform the customer experience: “With our technology partner we will be able to offer customers a digital fitting that takes 243 measurements. This enables us to offer entirely custom-made clothing delivered to store or the customer’s home within two-to-three weeks at incredible prices. The system will also enable us to provide sizing information. Based on the metrics, we are able to say if a customer is a 4XL in one of our brands then they would fit a 4XL in Ralph Lauren but a 5XL in Hugo Boss for example. The software compares the measurements against the fit blocks each brand brings to market.
“It makes the shopping experience so much easier. It also helps support our remarkable return rate, which is in the single digits; an outcome we are extremely proud of.
We also hope to develop this into a solution that could be utilized in the home of the customer with a smartphone and an app,” Harvey adds.
One of the challenges the business faces is geographical limitations, as Harvey explains: “Recent survey data has shown that 44 percent of consumers don’t shop with us because there is no store near them. As well as continuing to open new stores – between eight-to-ten in the next year – utilizing technological solutions will also help overcome this challenge.” Having a system which can provide detailed and accurate measurements from home would eradicate the inconvenience of having to return online purchases that don’t fit well.
Another advantage of having streamlined systems in place is it frees up store associates to provide a richer and more meaningful service. Harvey outlines the effect this has. “It means we are able to create community. We have bar stools around the central island for people to congregate and share. Guests will come to know store associates by name because their experience was so positive that they come back time and again. It’s not uncommon for associates to be invited to customers’ weddings and events. Our store net promotor score reflects this, currently sitting at 80 percent which is phenomenal.”
DXL Group is fast positioning itself as a world leading pureplay retailer with an unmatched big and tall offering. Having grown to the point of offering anything the customer needs to suit their lifestyle, from formalwear to workwear and accessories, the company provides a broad and holistic catalogue that incorporates best-selling fashion houses, staple American brands, and unique in-house brands that can’t be found anywhere else. Its sizing actually fits the bigger customer, providing them with the utility, comfort, and style they deserve. The business has capitalized on recent successes to streamline operations and implement solutions which will increase resilience to external, macroeconomic pressures. This will enable DXL Group to continue growing in the coming years as the demand for a more personalized retail experience increases.