The growingly popular casual athletic label Fabletics announced recently that they are opening over 100 new retail stores across North America, including having already opened in the Mall of America in Minneapolis. Fabletics’ goal is to open 75-100 brick-and-mortar stores within the coming three to five years.
Garnering roughly $250 million in revenue per year, Fabletics provides high end clothing at steep discounts, offset by its monthly membership fee. Fabletics does a lot to make sure all its customers know about this VIP membership fee, which offsets the super-low prices they are able to offer the market.
So far primarily an e-commerce operation, Fabletics is a champion of the reverse-showroom approach to retail, where shoppers, say, walking around a competitor’s store in person open up a search, find Fabletics, see the pricing on their website, and walk right out of the brick-and-mortar store, opting for Fabletics’ discounted price.
It’s an easy choice, and many people are choosing this route; Fabletics now boasts over a million subscribers, and has only been in business for three years so far.
Read more: @Fabletics
Origins of The Fabletics Brand
Fabletics was originally co-founded by Kate Hudson, who still appears in the company’s advertisements.
Ms. Hudson is somewhat of an e-commerce pioneer in her approach to retail with Fabletics, which is definitely not the exact experience customers are used to, but clearly it’s something that’s catching on quickly.
Ms. Hudson is slated to speak at the recode’s 2017 Code Commerce event in Rancho Palos Verdes, California. Past speakers at these events have included Bill Gates of Microsoft, Jack Dorsey of Twitter, and Elon Musk of Tesla.
Fabletics is a leader in the e-commerce space on marieclaire.com, and the audience at Code Commerce has a lot to gain from Ms. Hudson’s business insight into how to monetize web traffic.
Transition From E-Commerce to Brick-And-Mortar
In the past, what we’ve seen 99 times out of a hundred is companies that have a successful brick-and-mortar operation trying to get online and start monetizing the web.
Fabletics is confident they can perform well located near competing stores like Lululemons or Athleta.
Fabletics is also adept at the use consumer data in optimizing what’s available on retail stores, allowing Fabletics managers to make data-driven choices about what products to make most available in which regions.
In the end, Fabletics’ stated focus for their brand is to prioritize accessibility, people, and culture- only time will tell how this plays out.