Vancouver-based clothing manufacturer Duer, which sells to hundreds of resellers, has found sufficient success to support plans to expand further in North America and Europe.
One prong in its strategy has been to create a joint venture company in which it owns 70 per cent of the shares. Partner Hectic Europe owns the remaining shares.
Hectic Europe is in largely in charge of formulating future European expansion, Duer principal Gary Lenett told BIV Monday.
"We would rather have 70 per cent of a bigger pie than 100 per cent of a smaller pie," said Lennett, whose company has eight of its own stores.
"These guys have local knowledge, tons of experience, and this is what they do. This is their model. They've done it so many times before."
The plan is for Hectic Europe to sell products wholesale to resellers in Europe. It could also be involved in helping create Duer-branded stores in Europe, Lenett said.
The company is known mostly for selling what it calls "the world's most comfortable pants."
North American expansion is key to Duer's future
Duer also plans expansion in Canada and the U.S. through Duer-branded stores.
A ninth Duer-branded store is set to open next week in Victoria, at 584 Johnston Street. Branded stand-alone stores are then planned for Portland and San Francisco, likely in September or October, Lenett said.
Duer already operates its flagship store at 1757 West Fourth Ave. in Vancouver. Other Canadian stores are in Calgary, Edmonton, Toronto, Mississauga and Ottawa. It expanded south of the border years ago, with stores in Los Angeles and Denver.
Lenett co-founded Duer in 2015 with Abid Hafeez, when the two called the venture Dish and Duer. He first opened a pop-up store, and then in 2017 an 1,800-square-foot, now-closed store at 118 West Hastings St.
The company has enjoyed a steady pace in opening stores, including new openings during the COVID-19 pandemic.
Lenett told BIV in March 2023 that his aim was to have 10 stores open by the end of 2023 and 40 stores open around the world within five years.
He told BIV last November that the slowdown in his expansion plans stemmed from not being able to find ideal locations. He said Monday that he decided to pause expansion about 18 months ago, when inflation was crimping consumer spending and many were forecasting a recession.
Lenett said direct-to-consumer sales, from stores and e-commerce, generate about 60 per cent of his sales. Revenue from wholesales provides the rest. BIV last year spoke with Duer’s director of e-commerce and technology, Calvin Roex, about how the company was using artificial intelligence to help increase its e-commerce sales.
Initial European expansion came through individual partnerships with resellers. Lenett said he expects European sales to increase significantly thanks to the pact with Hectic Europe.
"I'm hoping to have about 30 more stores in the U.S. over the next three years," he said today. "That's the plan."
Duer's revenue is projected to be nearly $70 million in the fiscal year ending next March, with about half coming from the U.S.
"We now have about 800 retailers in the U.S. – 800 doors – from REI to Nordstrom," he said.
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