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The fanfare surrounding Artificial Intelligence can be reminiscent of breathless advertisements for do-everything kitchen gadgets: "But wait! There's more!!"
Amidst all that, we were intrigued to read about Scott Tannen*, the CEO and co-founder of the luxury bedding and home brand Boll & Branch. The company launched in 2014 as an online-only direct-to-consumer brand.
"When we first started the business, I don't think we ever envisioned having any physical stores whatsoever," said Tannen. Then, in 2018, they opened their first permanent store. "We saw this massive performance change in the business, because customers could touch and feel the products," Tannen discovered.
So Boll & Branch added more stores, and recently has turbo-charged their brick-and-mortar strategy. In just the past year, they have grown from 8 stores to 15.
But here’s what captivated us: how they decide on store locations.
They use Zillow.
Yes, Zillow. Tannen spends time examining the residential housing markets in prospective store locations.
Why? They're looking beyond household income.
Yes, their best customers have high incomes. More important, they have homes with lots of bedrooms.
“Even if they have more money in New York City, they’ve got more bedrooms in areas that have homes,” Tannen said. “So when we get to a slightly more suburban area, the customer that becomes a believer—their potential lifetime value increases exponentially.”
“If you look across our store mix, you’re going to start seeing a trend. We are in Birmingham, Alabama—very large houses relative to their market size. We’re not in downtown Chicago; we’re out in the western suburbs.”
Tannen admits that he spends a lot of time on Zillow to scout out new store locations. “Zillow is my favorite sport, actually.” Seems like he has not handed that off to AI.
Let’s be clear; AI is not to be dismissed. In fact, it no doubt powers Zillow!
But the savvy and judgment of an owner is not to be dismissed, either.
We find it rather inspiring.
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*"Why Boll & Branch’s Scott Tannen obsesses over Zillow to choose store locations." Andrew Adam Newman, Retail Brew, November 3, 2025
Honestly, we don't want to sound like alarmists. However…we are sounding an alarm!
As we all know, prices are rising, consumer confidence is falling, layoffs are rampant, and inflation, particularly with the impending tariffs, is likely to persist. All of which could combine to drive the economy into a recession. Grim.
Savvy retail owners are starting now to draft new "game plans" for this new economic environment. We want you to be one of the savvy ones.
For one example of how that can be done, consider the “torrent of adjustments” made by Starbucks' most recent new CEO Brian Niccol. (The company has had four CEO changes in the past five years.)
Essentially, he has enacted the moves of a classic turnaround plan, one that matches cost-cutting tactics with strategic goals, both quantitative and qualitative. (All without a chainsaw.)
Here's a post-pandemic strategy that should not be missed: higher margins! Not the entire store, of course; you must be a merchant here. But think about it: many shoppers have increased savings, reduced debt, or gotten their job back. Maybe all three. And after months of being at home, and spending on home improvement and groceries, many shoppers have pent-up demand to spend on items they have had to postpone, like for themselves. Whether that would be in a restaurant or in a specialty store, shoppers are more willing and able to spend. (And some even feel entitled to spend.)
Except for the lingering sugar high, Halloween is soon to be behind us. Retailers know what that means: on to the Holiday Season! Of course, for most retailers that brings a major focus on sales. But, savvy retailers are focused especially on the targeted ending inventory on December 31. Those retailers are carefully watching sales reports, and are poised for action.
The savvy retailers know that now is the time to be putting the finishing touches on – wait for it – being ready for December 26! Yes, this unique time period between December 26 and New Year's Day is a tremendous make-or-break opportunity. Indeed, many retailers find they net more from this time than any earlier stretch of 6-10 days!
First, the many opportunities to reduce expenses "back to normal". Less advertising cost. Less staff. Fewer hours.
There are three "pandemics" assailing us at the moment: the coronavirus; the economic collapse; the protests of racial injustice. The three months plus of stay at home restrictions and the shutdowns, and the confluence of these three pandemics has been a heavy burden. And it shows no signs of going away anytime soon. As the coronavirus continues to spread and surge (Apple re-closing 11 stores they had recently re-opened is a sobering reminder), the uncertainty and anxiety is only being prolonged.
Yes, we know. Owning a retail business these days is one flexibility test after another. And there are no one-size-fits-all solutions. In the United States, one of the most widespread impacts of the virus is uncertainty. With no end in sight. It is the virus that is in charge. As the president of Alaska Airlines noted, "We don't know what the future looks like."* But the fact remains, whomever is selling to the ultimate consumer has leverage. Might that be you?
Incredible value! 👀
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