Digital Brands Group is planning to open its first offline store in the first half of April, at Texas’ Simon Premium Outlet Mall.

The company expects the store to generate over $1.5 million in annual revenue and over $500,000 in annual cash flow based on the historical performance of this location, and excess Sundry inventory prior to the acquisition.

The firm will use the new location to clear excess inventory at higher margins than selling into the off-price channel.

Hil Davis, CEO of Digital Brands Group, said this marks the start of the company’s retail store phase to boost growth.

“We believe the best performing retail brands will have three legs to their growth story: wholesale, e-commerce and retail stores,” Davis remarked.

Digital Brands Group offers apparel through numerous brands on a both direct-to-consumer and wholesale basis. The company focuses on leveraging customers’ data and purchase history to create personalized targeted content and looks.

The firm aims to accelerate the growth of brands by offering specialized services and infrastructure that are crucial to their success. Its current portfolio includes Bailey 44, DSTLD, Harper & Jones, Stateside and Sundry.

Digital Brands previously announced its plan to open 50 retail stores over the next few years and expect them to generate over $75 million annually in revenues and cash flow.