Increasing Number of Brands Recognize the Significance of Wholesale Business over the Direct-to-Consumer Model

## Retailers Are Rediscovering the Power of Wholesale: CNBC Report

On this episode of Squawk on the Street, CNBC reporter Courtney Reagan reveals a surprising trend among retailers in search of a boost: a return to old avenues through wholesale partnerships[^1^]. As brands strive to maintain control over their consumers, they are realizing the significant value that wholesale can bring, even after the explosion of the direct-to-consumer model[^1^].

One notable example is Nike, which, after cutting ties with about half of its retail relationships between 2017 and 2021, is now coming back to establish partnerships with Macy’s and DSW[^1^]. Similarly, Levi continues to push for direct-to-consumer growth but has experienced a 25% increase in its wholesale business just last year[^1^]. PVH, on the other hand, is actively deepening its wholesale partnerships, and ELF reports a significant 70% growth in business, indicating an expansion of their relationships[^1^].

Even long-standing direct-to-consumer companies like LL Bean have recognized the benefits of entering the wholesale market. In 2020, LL Bean made the strategic move, expanding its geographic reach and diversifying its customer base[^1^].

It seems that even fast-growing direct-to-consumer companies that heavily relied on social media marketing have conceded the limitations of this approach[^1^]. Apple’s privacy measures and ad tracking restrictions may have played a role, but retailers are discovering that wholesale has always been a powerful sales channel[^1^].

Stay informed with the latest in business news and finance. Subscribe to CNB’s Squawk on the Street for breaking news, timely analysis, and expert insights into the world of retail and beyond[^2^].

[1] [Source: CNBC’s Courtney Reagan reports on news from retailers.](

[2] [Squawk on the Street – CNBC](

CNBC’s Courtney Reagan reports on news from retailers.

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