Should Your DTC Brand Go Into Retail?

What if Your Growth Team Had Superpowers?

Look, we've all been there. Your retention program → sending generic email and SMS campaigns, crossing your fingers, and hoping something sticks. 

A mix of vibes, gut feel, and partial insights pieced together from disconnected data. 

👀 But what if you had actual superpowers?

• X-Ray Vision: See every customer's full story, including purchase history, browsing behavior, and engagement, in one unified profile.

• Time Travel: Predict churn before it happens and know the perfect moment to trigger a message.

• Mind Reading: Send hyper-personalized messages that feel like you're reading their thoughts.

• Super Speed: Scale 1:1 experiences to thousands of customers automatically.

That’s what it feels like when your brand runs on Klaviyo.

It’s not just an email platform. It’s a real CRM built for B2C brands. 

The only one that gives growth marketers the visibility, speed, and control to execute personalized campaigns at scale. No data science degree required.  

We’ve used it to scale Obvi. Brands like Caraway, Jolie, and Ridge also trust it. 

Because once you have superpowers, you never want to go back to batch-and-blast.

👉  Unlock your superpowers with Klaviyo 

Hey everyone,

Welcome back for another bite to chew on. Today, we are starting a 3-part newsletter series covering all things retail.

Here’s What’s On the Menu:

• The 4 Questions That Determine Retail Readiness

• Understanding the Retail Landscape (FDMCC Breakdown)

• The Team, Capital & Timing Reality Check

It's the question every successful DTC founder eventually faces: should we go into retail?

Your online business is humming, you've got product-market fit, and suddenly retail starts looking like the next logical step.

More revenue, broader reach, validation that you've "made it."

But here's the reality → it’s easy to jump into the deep end of retail and drown.

At Obvi, we're now in over 4,200 Walmart stores, plus Target, CVS, and other major retailers.

But we made some expensive mistakes along the way that could have been avoided with the right framework upfront.

That's why we're starting a 3-part series on taking your DTC brand into retail. Today, we're covering the fundamental question…

Should you even do this in the first place?

The 4 Questions That Determine Retail Readiness

Before you start dreaming about seeing your products on Walmart shelves, you need to honestly answer these 4 questions:

1. Does your product assortment make sense for retail?

Not every product is retail-ready. 

Consider:

• Price point (can you maintain margins with retail markups?)

• Packaging (does it work for shelf display and transportation?)

• Consumer behavior (do people buy this type of product in stores?)

At Obvi, our supplements had the right price point and packaging for retail. But we had to adjust some of our formulations and sizes to better fit retail expectations.

2. Is your brand ready for retail's demands?

Retail isn't just "more sales channels." It's an entirely different business model with its own requirements:

• Longer payment terms (retailers typically pay 30-90 days after delivery)

• Strict logistics requirements (on-time, in-full delivery is non-negotiable)

• Different marketing needs (in-store vs. online promotion)

• Compliance and regulatory requirements

3. Do you have the right team in place?

You'll need people who can handle:

• Sales and buyer relationships

• Logistics and supply chain management

• Retail-specific marketing and promotions

• Account management and ongoing support

We had to bring on specialized retail talent early in our journey. Trying to do it all with our existing DTC team would have been a disaster.

4. Can your business handle the financial implications?

This is the big one. Retail requires:

• Upfront investments (slotting fees, promotional costs, inventory)

• Working capital to support longer payment cycles

• Marketing budgets for in-store and promotional support

• Potential cannibalization of higher-margin DTC sales

• A supply chain that handle big demand swings

❌ If you can't confidently answer "yes" to all 4 questions, retail might not be right for you (yet). 

And that's okay → focus on what's working and revisit retail when you're truly ready.

Already in retail? Use these same four questions as an audit. If you're struggling with any of them, that's likely where your retail challenges are coming from. 

For example, if your team is stretched thin managing retail accounts, that's a sign you skipped question #3 and need to make strategic hires.

Understanding the Retail Landscape: The FDMCC Framework

If you've passed the readiness test, the next step is understanding where you fit in the retail landscape.

In retail, we use the acronym FDMCC to break down the main channels:

F - Food (grocery stores, supermarkets)
D - Drug (CVS, Walgreens, pharmacies)
M - Mass (Walmart, Target, big-box retailers)
C - Club (Costco, Sam's Club, membership stores)
C - Convenience (gas stations, corner stores)

Each channel has its own characteristics. Let’s break them down…

🏬 Mass retailers like Walmart offer incredible reach but demand competitive pricing and high-volume production capabilities.

💊 Drug stores provide credibility for health and wellness brands but typically require smaller pack sizes and focus on premium positioning.

💳 Club stores (think Costco) need larger pack sizes and ultra-competitive pricing, but can move massive volume if you hit.

🍲 Food channels work great for consumable products but have intense competition and thin margins.

🏪 Convenience stores offer impulse purchase opportunities but limited shelf space and they have specific packaging requirements.

We started with mass (Walmart) because it aligned with our target customer and price point. But we also knew drug stores would be important for building credibility in the supplement space.

The key is being strategic about which channels you target and in what order. 

Don't just chase every opportunity that comes your way. Make sure they align with your customer and product profile. 

If you're already in retail: Map out where you currently are versus where you want to be. Maybe you started in mass, but drug stores would actually be a better fit for your margins. 

Or you're in too many channels and should consolidate to focus on the ones that actually drive profit.

The Team, Capital & Timing Reality Check

Here's where most brands get tripped up → they underestimate what retail truly requires.

📋 Team Reality Check 

You'll need dedicated resources for:

1. Sales: Someone who can build relationships with buyers and navigate the complex world of retail negotiations

2. Operations: Managing inventory, forecasting, and logistics across multiple channels

3. Marketing: Creating in-store promotional strategies and supporting retailer marketing initiatives

4. Account management: Ongoing relationship management and performance optimization

As mentioned, we had to make strategic hires specifically for retail. Trying to bolt retail onto our existing DTC team's responsibilities would have hurt both channels.

💵 Capital Reality Check

Retail isn't cheap, and the cash flow management is tougher. 

Budget for:

• Slotting fees: Upfront payments to secure shelf space (can range from thousands to hundreds of thousands)

• Marketing and promotional support: In-store displays, sampling programs, promotional pricing

• Inventory investment: You'll need more working capital due to longer payment cycles

• Packaging and compliance: Retail-specific packaging requirements and regulatory compliance

We spent significantly more on our retail launch than we initially budgeted. Plan for 20-30% more than your initial estimates.

⏰ Timing Reality Check

Retail operates on its own calendar, not yours:

• Planning cycles: Most retailers plan 6-12 months in advance

• Seasonal considerations: Product launches need to align with retailer buying seasons

• Production lead times: You'll need longer lead times for larger volume orders

We learned that Walmart's planning cycle starts in November/December for the following year. Missing that window means waiting another full year for your next opportunity.

For brands already in retail: This timing framework helps you plan expansions and new product launches. 

If you want to add a new SKU or enter a new retailer, you need to be thinking 6-12 months ahead, not 6-12 weeks.

Quick Hits

👉 Link: 3 powerful Meta updates DTC brands can’t afford to miss; including new attribution tools to Reels strategies and value-based optimization.

👉 Link: The 7-part TikTok strategy driving Obvi’s growth.

👉 Link: Zach Ranen, co-founder of David Protein, reveals how his science-first protein bar brand hit $1M in week one. Learn how meticulous R&D, viral tactics, and DTC-to-retail strategies turned David Protein into a powerhouse.

Sum It Up

Retail can be a game-changer for DTC brands, but only if you're truly ready for it.

Before you start pitching retailers or hiring brokers…

• Make sure you can honestly answer "yes" to the four readiness questions. 

• Understand which retail channels make sense for your brand and products. 

• Be realistic about the team, capital, and timing requirements.

In Part 2 of this series, we'll dive into the operational reality of retail that no one talks about: logistics. 

We'll cover choosing the right 3PL, understanding OTIF requirements, managing forecasting across multiple channels, and the hidden operational costs that can make or break your retail success.

But first, do the honest assessment above. Retail success starts with being ready, not just being eager.

All the best,

Ron & Ash