Kate Hudson-founded activewear brand Fabletics on Saturday opened its first New York store, in the city's SoHo neighborhood, according to the brand's blog.
In addition to its website, Fabletics runs more than 25 retail locations throughout the United States, according to the company's website. The company is expanding its physical footprint because stores contribute to online sales, according to WWD's report, which also describes the brand as the only one in parent company TechStyle's portfolio "that has successfully bridged its online subscription business with growth into brick and mortar."
Fabletics is among the many e-commerce companies that have figured out the advantages of physical retail. Last summer, Fabletics announced plans for 75 new brick-and-mortar stores.
Parent company TechStyle is among the subscription companies enjoying longer-term rates, along with Amazon Subscribe & Save, Dollar Shave Club, Ipsy and Loot Crate, according to a study from McKinsey and Co. last year. The group has more than five million active members, the company said in January.
It's not clear how many of those subscribers feel trapped, however. The brand continues to garner complaints about how difficult it is to cancel a membership and how murky its rules are, including in comments on Facebook under its announcement about the New York pop-up. Its "VIP" membership is free to join, but members pay a monthly fee, which goes toward what they buy. Members also have the option of skipping a month without being charged, but if they don't buy or actively skip, a charge goes on their credit card, which can be used as credit toward a future purchase.