What's the philosophy behind the Nau retail model? Do you see this model being replicated across other industries?

We designed our retail model based on our observations of changing consumer shopping habits in the internet age. Nowadays, many people go to clothing stores and try on items to find the right size and then go home and surf the web to find the best price. Using this information, we created what we call our Webfront stores. Customers can come in and try on any style in our line. If they want, they can purchase their items and take them home, like a traditional store. But if they select our “Ship-to-You” option, they get a 10% discount on their full order and we ship the items, free of charge, from our warehouse to their home. This allows us to keep a smaller inventory in each store, which means we have smaller stores and spend less to build the stores and less on all the associated operational costs. In addition to the economic efficiencies of the model, there are also various environmental efficiencies, enabling us to reduce our overall ecological footprint.

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