ANALYSIS AND OPINIONFebruary 28, 2026

European DTC brands are moving into physical retail earlier than ever

From Tesco to Harrods, digitally native brands are treating stores as a growth channel, not a graduation milestone.

SUPPORTED BY PAPER RUN & SHOPLIFT

Mission Tea Tesco
Mission recently launched in Tesco stores.

Over the past ten weeks, a number of European digital-first brands have landed on physical shelves or opened their own stores — and the pace suggests something structural, not coincidental.

Spacegoods, DIRTEA, and Mission entered Tesco. DREAMSAKE landed in M&S. Valerie, Nuchu, and NUTRIGUMS secured Holland & Barrett. JAMU appeared in Harrods. AKT London joined Space NK. KUDU Nutrition, SULT, and Only Curls rolled into Boots UK.

Retail as a parallel channel, not a second act

The old DTC playbook was sequential: prove the model online, then explore physical retail once you've scaled. But it feels like that timeline is shrinking with more brands are entering stores alongside their early online growth, not after it.

Join European founders, operators, and investors who read The Checkout every week.

The driver is partly economic. Customer acquisition costs across Meta, Google, and TikTok keep climbing, making digital-only growth increasingly expensive. Shelf space offers visibility without daily auction economics — and for supplements, skincare, and personal care, in-store presence carries a trust signal that paid social doesn’t on its own.

At the same time, brands are building their own footprints. Lucy & Yak opened its 15th shop. HOFF launched a Covent Garden flagship. Stripe & Stare opened its first store. LABFRESH ran a crowdfunding round specifically to fund additional flagships.

Who's driving it?

Both sides. Retailers like Boots, Holland & Barrett, and Tesco need differentiation, and digitally native brands with built-in social followings deliver that. On the brand side, listings in these stores can reach millions of consumers without the fixed costs of owned retail.

More brands also appear to be going down the owned-store route, too. Brands like HOFF, Stripe & Stare, and LABFRESH are investing in flagships that double as brand-building exercises — showrooms that reinforce positioning, enable product education, and create content that feeds back into digital performance.

What to watch

Nearly all of these examples are UK-based. Whether the pattern replicates across Germany, France, and the Nordics remains an open question. Also worth tracking: whether brands entering wholesale this early can sustain the margin pressure of running two fundamentally different business models simultaneously.

The trend’s pretty clear: Retail is showing up sooner in a brand’s journey - alongside online growth, rather than after.

SUPPORTED BY PAPER RUN

Paper Run

Paper Run helps brands win back customers that email can't reach through automated direct mail that integrates with Shopify & Klaviyo.

SUPPORTED BY SHOPLIFT

Shoplift

A/B Testing Doesn't Have to be a Pain in the SaaS. Unleash your store’s profit potential with the first CRO platform purpose-built for Shopify.

JOIN OUR FOUNDER NETWORK:

VENICE FOUNDERS NETWORK

A private network for Europe's leading eCommerce founders & CEOs.

A space for founders & CEO's to find each other, learn from each other, and move faster together.

APPLY TO JOIN200+ MEMBERS
Venice Founders NetworkVenice Founders NetworkVenice Founders NetworkVenice Founders Network