How VICI’s Leveraging Pop-Ups For Long-Term Retail Success

News Room

Since its inception in 2012, VICI has evolved from a digital-first brand into a fashion powerhouse rooted in strong customer engagement. What began as a social media-driven business has expanded into a hybrid retail model, combining the convenience of online shopping with the tactile experience of brick-and-mortar stores. As VICI looks ahead to 2025, the brand is preparing for an ambitious retail expansion aimed at deepening its connection with customers and exploring new markets.

Like many brands, VICI faced unique challenges during the COVID-19 pandemic, which impacted its retail operations. However, through a well-executed pop-up strategy and a commitment to maintaining personal connections with its customers, the brand has emerged, ready to scale its retail footprint.

A Social Media Pioneer and Pre-COVID Success

The brand started as a social selling pioneer on platforms like Instagram and Facebook, building a loyal customer base through curated product drops and real-time engagement. This early emphasis on digital-first selling allowed the brand to connect directly with customers, setting the stage for retail store openings. “VICI was a pioneer in social selling, so even before we had our website, even before we had retail stores, we had this communication on social,” Aimee Dudum Colorado, Chief Merchandising and Marketing Officer and cofounder, shared.

In time, the brand opened three physical stores, with its Nashville location quickly becoming a significant market for VICI. However, the pandemic dramatically shifted the retail landscape. Like many retailers, VICI had to pivot its business strategy. “COVID hit, and it was a little bit of a pullback with retail. We kept our Nashville store intact, but as you might recall, operating stores in California was really difficult.”

Despite the pandemic, the Nashville store thrived, solidifying the importance of physical presence in key markets. Dudum Colorado elaborated on the significance of this store for the brand, stating, “Nashville was in our top 10 cities. Having a retail store, it quickly climbed into the top five.” This in-person experience allowed customers to build deeper connections with the brand, which, in turn, drove local market growth. The lesson from Nashville was clear: combining online sales with an in-store presence could have a powerful effect on customer engagement and loyalty.

A Customer-Centric Retail Approach

VICI’s success has always been tied to its deep understanding of customer needs. The brand initially focused on creating a seamless experience across online and offline channels. “Often, you’ll see things online, and then you go to the retail store and can’t find those items. So, we decided to align our drop strategy online with in-store,” Dudum Colorado said. This strategy ensures that customers get the newness they expect from VICI, whether online or in-store.

Another critical component of VICI’s customer-centric approach is its focus on creating engaging in-store experiences. The Nashville location regularly hosts influencer try-ons, and co-branded activations, making the store a hub for local customers. These events build community while offering customers a chance to interact with the brand more meaningfully.

Pop-Ups and Retail Expansion

The success of the Nashville store, combined with the lessons learned from the pandemic, has shaped VICI’s strategy moving forward. In 2024, VICI experimented with pop-up shops in Southern California, testing the waters in key markets like Los Angeles. The pop-ups were designed to engage existing and new customers, introducing them to the brand in a physical space.

However, these initial pop-ups were operated by a third party, which limited VICI’s ability to offer the entire brand experience. Going forward, the new stores will be operated by VICI, ensuring a more branded and connected experience.

In 2025, VICI plans to open five pop-up locations in strategic cities across the U.S., including Scottsdale, Dallas, Miami, Chicago and NYC. Two of which will be tied to Miami Swim Week and MLB spring training in Scottsdale. The goal is to engage local customers and tourists while testing the viability of permanent retail locations in those markets. “We’ve carefully selected cities based on where our customers are and where we feel like there are the most new potential clients. Pop-ups are definitely about brand awareness and acquisition,” Dudum Colorado said. “I want to make sure it’s a balance of going to cities where we also can have our repeat, true VICI loyalist customers come in and meet the brand.”

The 2025 pop-ups will be larger than the initial ones, each approximately 3,000 square feet, allowing VICI to showcase its complete assortment of apparel and accessories. This space will enable the brand to maintain its hallmark of frequent newness, ensuring that customers find something fresh every time they visit.

While pop-ups will serve as a testing ground, VICI’s long-term strategy includes opening permanent retail stores in select markets. The brand aims to replicate the success of its Nashville store in cities with high customer demand. However, the company is cautious about rushing into full-time retail leases and wants to use this time to test and learn.

This strategy is similar to brands like Skims, which started with various pop-ups before launching permanent stores more recently. It’s also identical to other brands that have worked with third-party retail operator Leap, including ThirdLove and Frankies Bikinis. A more prominent brand that has taken a similar pop-up first approach is Warby Parker, which started with many pop-up stores before growing its fleet of now over 200 stores.

Beyond physical retail, VICI is exploring new channels for growth, including partnerships with marketplace platforms. The brand is already live on Nordstrom’s drop-ship program, which has provided valuable insights into customer preferences. There’s also potential for future partnerships with other retailers, marking an exciting expansion beyond VICI’s direct-to-consumer model.

As Dudum Colorado sums it up, “Being able to experience VICI in person is how we acquired a lot of our customers, to begin with, and it’s how we’ll get back to a state of growth.”

Read the full article here

Share this Article
Leave a comment