Founders often think about retail benchmarks all wrong. Once they realize their mistake, it's too late.
Landing your product on the shelves of a major retailer like Target sounds like a dream come true for most brands. Ten thousand stores mean ten thousand chances to be discovered, loved, and bought by eager customers. But during my years as a buyer for Target, I saw firsthand that the reality is much harsher than many entrepreneurs expect. The exposure can be intoxicating, but it often leads to a dangerous cycle that very few brands survive.
When a brand gets picked up by a big-box retailer, it often rushes to ramp up production, hire staff, and stretch every resource to meet the demands of a massive order. On paper, this looks like explosive growth. Behind the scenes, though, the strain on cash flow, operations, and logistics becomes enormous. Most small brands don’t have the infrastructure to scale that fast, and the pressure to perform becomes overwhelming.
One of the dark secrets is that stores like Target often have strict sell-through expectations. If your product doesn’t meet sales targets in a short window, you can be penalized, have your future orders reduced, or even be discontinued entirely. Worse, brands sometimes owe retailers money for unsold inventory. I watched passionate entrepreneurs spend months getting their foot in the door, only to lose everything when the sales didn’t keep up with the retailer’s expectations.
Another brutal reality is the hidden costs associated with retail partnerships. Brands are often responsible for funding promotions, discounts, in-store displays, and marketing campaigns — costs that quickly erode margins. Many founders are shocked to discover that even though their products are selling, they are barely breaking even after factoring in all these expenses. Instead of boosting profitability, landing on those 10,000 shelves can lead to financial ruin.
Competition is fierce. Every aisle is packed with brands vying for customer attention. Even if you manage to secure shelf space, staying there requires constant innovation, marketing, and price competitiveness. Retailers can also suddenly shift strategies or category focus, leaving brands scrambling to adapt or risk being phased out.
The most heartbreaking part was seeing entrepreneurs tie their entire business identity to their retail success. When things didn’t work out — and they often didn’t — it wasn’t just a financial loss. It was an emotional blow that many struggled to recover from. Their dream turned into a cautionary tale overnight.
Today, I always advise brands to think carefully before going big with mass retail. Building a strong direct-to-consumer foundation first, ensuring they have resilient supply chains, and preparing for the financial risks is essential. Getting into a major retailer can transform a brand, but it can also destroy it if the company isn’t truly ready.
Landing on 10,000 shelves isn't the end goal — it's just the beginning of a much harder journey. The brands that survive are the ones that go in with open eyes, deep pockets, and a willingness to adapt quickly to a brutal, unforgiving environment.
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