What: One, a store opened in East Hampton New York, is leaning on DTC brands for nimble inventory and restructuring the traditional wholesale payment model.

Why is it important: New wholesale business models are emerging, with a more equal financial split between store and brands. Another alternative retail concept, Platform, was reported by IADS last month (link below).

One store carries a chic mix of fashion and homewares, but it’s underpinned by online, DTC brands as well as an unusual deal to sell fine art curated by Artsy. Many, if not most, of the brands carried there are able to quickly fulfil One’s orders from their own DTC distribution channels. The model leans heavily on a form of consignment that shares a higher portion of proceeds with brands when goods sell.

Anna Mason, a London designer whose collection is sold at One, acknowledges that the model poses a significant risk because she isn’t paid until her fashions sell. She can make more profit, though, because she receives roughly half the sales. She also notes that One, without the risk of a big buying commitment, is willing to carry a broader selection of her label, which leads shoppers to see more of her work and remember her brand name.

One doesn’t anticipate participating in the discount fashion economy. One’s clients should not wait for inventory to go on sale. Pieces that don’t sell go back to the brand, which may put it on sale on its own site, or deploy it to another e-tailer or retailer.

Rethinking the US multibrand retail

Related Item:

• Is Los Angeles’ Platform the future of retail?