Why Retail Has Become Critical for Modern CPG Brands

Retail has re-emerged as one of the most important growth and profitability levers for modern CPG brands. As digital customer acquisition costs rise and DTC margins compress, retail is often the most reliable path to scale.

This guide explains why retail, once viewed as margin-dilutive, can actually improve contribution margin and EBITDA when evaluated correctly. Using a simple financial model, it shows how lower in-store acquisition costs can offset reduced gross margins and widen overall profitability.

What's Inside

• Why the DTC-first playbook has broken down for many consumer brands

• How retail can be margin-accretive despite lower gross margins

• Why channel-level P&L analysis is essential for understanding true profitability

• How shifts in retail mix impact gross margin and marketing spend as a percentage of revenue

• The operational realities of retail, from demand planning to packaging and supply chain complexity

• How distribution and velocity (U/S/W) drive scale and long-term profit potential

Designed for CPG founders, CEOs, and finance leaders, this resource provides a clear framework for evaluating retail expansion and understanding when and how retail can unlock sustainable growth.