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Fabletics Offers a Unique Retail-Subscription Shopping Experience


It is the age of subscription services and boxes, and Kate Hudson and Fabletics seem to be the fastest-growing trend. Self-described as an “athleisure” brand, the company started as a service offering discounts for purchases to “VIP” members monthly, unless you skip the month (source); now, it has opened retail stores across the country in order to offer a more integrative experience for timid online shoppers.

The parent company, JustFab, began as a “subscriber-only” online shoe shopping experience a few years ago. As the rise of subscription services as well as “athleisure” style took off, Kate Hudson teamed up with the team at JustFab to create Fabletics. The company places itself in the same category as brands like Lululemon and Athleta, two retail stores with various locations across the country in which customers can purchase high-quality athletic and lounge clothing.

The business model was successful, but some consumers complained about the “subscription service” process (source) on Pinterest, which is modeled similarly to other subscription services. In response, JustFab co-CEO Adam Goldenberg and his team announced their plan to open 75 to 100 stores in the next few years, offering a more expansive shopping experience for customers.

Fabletics also expanded last year to include men’s clothing and accessories (source), but that wasn’t enough. While the age of the internet shopper has come, many shoppers will avoid making purchases if they are unsure of the fit or the materials used; it is a hassle to return clothing via the postal service if it becomes necessary. Opening retail locations will not only offer customers the opportunity to try on their clothes before purchase; it will also offer the ease of process of returning clothes directly to the retailer on Mall of America, a 5-10 minute process that provides immediate gratification that so many shoppers today are seeking.

Fabletics hopes that by opening retail locations across the country, they will increase subscription-based customers, who will be more confident in their purchases.

The retail stores will offer discounts to existing “VIP” members and will also offer the ability to become a “VIP” member while in store. According to JustFab’s corporate marketing officer Shawn Gold, the retail stores have yielded approximately 50% purchases from existing “VIP” members, 25% from non-members, and 25% of shoppers becoming members in-store (source).

Fabletics is making its way to the top of the athleisure retailer charts. By offering both an online and a retail experience, the needs of consumers will be addressed directly, and the customer base has already grown tremendously.

The retailer currently has 10 locations open, which can be seen here. Source: https://www.youtube.com/user/Fabletics

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