Brandless was primarily felled by a thesis that never panned out — that there were young consumers who craved a digital middle ground between dollar stores and malls. People who were price-sensitive, cared somewhat about quality, but not about brands. Walmart for hipsters. Trader Joe's for millennials.

Highly venture-backed DTCs largely have two pathways to longevity and success. They can sell to an incumbent, much in the same way that Bonobos and Jet.com have sold to Walmart, or they can try their luck and go public. The incumbents are willing to overlook the less than ideal DTC economics because what they’re buying isn’t a business model, it’s... See more

Brandless’ proposition of good products at a great price works if they a sustainable cost. Being an eCommerce company, the CAC is a variable that grows with sales. At $3 per product and a CAC that grows along with the volume of sales, the model looks very different and inferior to ALDI’s. For the whole of 2019, as Brandless’ traffic was... See more