With June upon us, consider this: More than 2.2 million women will get married in the United States this year. About one-third of them will be outfitted by one company: David's Bridal.
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 $550. Some sell for just $99.
David's Bridal has been called the "Wal-Mart of weddings," and, like the big-box giant, it may be poised to emerge from the recession as a more formidable retail force.
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As many small, independent dress shops have shuttered due to the economic downturn, David's Bridal is in the midst of what it calls "an ambitious expansion program." The privately held company doesn't publish revenue figures; Thomson Reuters estimates its sales were $683 million in 2008.
"I would say it's actually performed relatively well in this recession," says Jackie Oberoi, a credit analyst at Standard & Poor's. She estimates that David's Bridal has added between 15 and 30 stores a year 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.
As the retailer unveiled its new Manhattan store this spring, CEO Robert Huth acknowledged the company's unique position, saying, "Although many retail stores have been closing locations due to difficult economic times, David's Bridal is proud to open its heart and doors to the people of New York City."
The newly opened store has a utilitarian feel; racks and racks packed with plastic-wrapped gowns, organized by price and size (2 through 26). There are no champagne toasts or doting bridal consultants. Brides pick through the dresses like they're shopping for groceries.
The styles range from trendy cuts to classic silhouettes, but almost all the gowns have one thing in common; they're made of the fabric that no bride wants to speak of too loudly: polyester.
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"The first store didn't even have carpet on the floor," says Phil Youtie, former executive and founder of the David's Bridal empire (the company gets its name from a small bridal shop that Youtie bought out early in his career). In 1990, Youtie began selling deeply discounted gowns on pipe racks in a Florida warehouse. At the time, most bridal shops stocked dresses only in sample sizes, so customers would have to wait months for their own dresses to be manufactured, delivered and altered.
"We wanted to have all of our dresses right then and there," explains Youtie. David's Bridal offered not only on-the-spot purchases but bargain-basement prices as well. "Everybody loved the idea," says Youtie.
Well, not everybody loved it. In fact, 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, the 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 inexpensive 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% of the $600-and-under wedding-dress market.
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Wedding cake dazzle on a cupcake budgetEngaged couples looking to hold down reception costs don't have to settle for a boring and tasteless wedding cake, reports Michelle Kung of The Wall Street Journal. (June 9)
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 of brides-to-be, 55% 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. "I think they're considering it even more than ever," says Gail Malecot, a bridal retail consultant. "These girls want to spend less on their weddings, across the board, from dresses to chair covers," she says.
The real test for David's Bridal -- and most budget-friendly retailers today -- comes when the economy rebounds. Of course, therein lies the big difference between David's Bridal and Wal-Mart Stores (WMT, news, msgs): People shop at Wal-Mart regularly, whereas David's Bridal is presumably seeing most of its customers for one purchase (or not much more than one).
This article was reported by Caitlin McDevitt for The Big Money.
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