Filed under: The industry of bridal gowns
David’s Bridal outfits one-third of America’s brides — on the cheap…
History
The original David’s Bridal started in the 1950s with a single location in Fort Lauderdale, FL under the founder and original owner David Reisberg.
In the early seventies Phil Youtie purchased the store and decided to keep the established name. Like most bridal stores at the time, the original David’s Bridal stocked only sample gowns in a standard size. Youtie had changed the store model in the late 1980’s with a warehouse style store off I95 where they sold designer gowns, discontinued dress and manufacturer over runs at below retail prices. The “David’s Bridal Warehouse” did not have dressing rooms and had a concrete floor. This was based after many wholesale warehouses at the time and served them well until other local bridal store complained to the designers for allowing this. Within a couple of years and many local stores going out of business, the designers that supplied gowns to the David’s bridal stopped. David’s Bridal has since changed the model to more traditional stores with a selection of their own designed wedding gowns, in stock, in most common and some plus sizes. Most stores can now provide on-site alterations, financing options, and gown preservation services.
Business Practices
David’s Bridal stores have an all-sales-are-final-policy. Even if a customer does not wear a dress, and does not have it altered in any way, their policy is to not refund money under any conditions; having a receipt doesn’t make a difference. Online purchases are returnable; however, a large number of items are found in the “sale” and “outlet” sections; these are unreturnable.
With more than 300 stores throughout the country and a growing online presence, the retailer offers unbeatable prices on a wide selection of mass-produced gowns.
While the average wedding gown costs $1,075, according to Condé Nast Bridal Media, the average David’s Bridal dress retails at only $550. Some sell for just $99. It has been called the “Wal-Mart of weddings,” and, like the blue big-box giant, David’s Bridal may be poised to emerge from the recession as an even more formidable retail force.
Many small independent dress shops have shuttered recently due to the economic downturn. Meanwhile, David’s Bridal is in the midst of what it calls “an ambitious expansion program.” The company is sitting pretty compared with the rest of specialty retail.
David’s Bridal is privately held, so while it doesn’t publish revenue figures, Thomson Reuters estimates that its sales were $683 million in 2008.
David’s Bridal has added about 15 to 30 stores annually since 1999. Even in the past year’s gloomy retail environment, it opened 20 stores. The brand’s budget-friendly reputation appears to be paying off.
The newly opened store has a utilitarian feel: racks and racks packed with plastic-wrapped gowns, organized systematically by price and size (2 through 26). There are no champagne toasts or doting bridal consultants. Most of the bustling brides pick through the dresses like they’re shopping for groceries.
Customers don’t expect to find high-end silk gowns at David’s Bridal. And brides have never gone there because it’s a fancy place.
“The first store didn’t even have carpet on the floor,” says Phil Youtie. Most bridal shops only stocked dresses in sample sizes, so customers would have to wait months for their own dresses to be manufactured, delivered, and altered.
David’s Bridal not only offered on-the-spot purchases but also bargain-basement prices.
Lots of people in the wedding industry loathe David’s Bridal. That’s because, for years, bride after bride has jilted her local boutique and purchased a dress from the chain instead.
“Whenever a David’s opens up, business drops instantly,” says Sally Conant, executive director of the Association of Wedding Gown Specialists. Most small shops can’t afford to stock dresses in every size or discount their merchandise as deeply as David’s Bridal does. Because its dresses are typically made with cheap materials, manufactured abroad, and purchased in bulk, they’re some of the least costly gowns available. As a result, David’s Bridal claims an estimated 50 percent of the $600-and-under wedding dress market.
The current economic downturn could be the perfect storm that David’s Bridal needs to capture even more market share. While the recession hasn’t deterred couples from tying the knot, it has shrunken their budgets substantially. The average cost of getting married in the United States slipped in the first quarter to $19,212, according to the Wedding Report, a market research firm. That’s down from $21,814 last year and $26,450 in 2005.
Brides-to-be are opting for cupcakes instead of wedding cakes, downsizing their guest lists, and, yes, compromising on what may have been the dress of their girlhood dreams. According to a recent survey, 55 percent of brides plan to spend no more than $600 on their dresses.
That means that those who may not have set foot inside a discount shop like David’s Bridal in the past are venturing in.
The real test for David’s Bridal—and most budget-friendly retailers today—will come when the economy rebounds. Of course, therein lies the big difference between David’s Bridal and Wal-Mart: People shop at Wal-Mart regularly, whereas David’s Bridal is presumably seeing most of its customers for only one purchase (or not much more than one).
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