Most Consumers Retain Clothing Subscriptions, Data Shows

In the last year and a half, due to persistent inflation and consumers going back to normal life post-pandemic, retail product subscription levels have dropped to where they were in 2019.

This sharp correction in demand occurred across all retail categories, though certain markets such as clothing and accessories that are retaining customers are stabilizing their fall better than others. Now, during the holiday season, when consumers are on the hunt for better deals, subscriptions to retail products may see an uptick again.

“The Replenish Economy: A Household Supply Deep Dive,” a PYMNTS Intelligence research study conducted in collaboration with sticky.io, details how retail subscriptions are changing the shopping landscape in nine categories: alcohol, beauty, clothing and accessories, education, food and beverage, health and wellness, household supplies, pet supplies, and toys and entertainment. 

One of the study’s key insights is that clothing retailers are setting the gold standard for consumer retention. The research found that 91% of these merchants provide free shipping, and 86% offer the ability to pause or skip deliveries — the highest among the nine industries studied. Subscribers consider both features as key elements for a positive shopping experience. 

Furthermore, 86% of these merchants also provide guarantees or refunds, which consumers typically consider a crucial factor when subscribing. Investing in these features and maintaining consistently good performance helps to explain why clothing and accessories merchants have managed a 68% customer retention rate.

In line with overall market trends, apparel subscription platform Stitch Fix has seen its active clients fall by 15% this year.

The company is now focusing on its more profitable customers to sustain sales. During the company’s most recent earnings call, CEO Matt Baer said: “We are building a healthier client base by more precisely targeting high lifetime value clients that we expect will help us expand our client base over time, and … we are developing a long-term strategy to better serve the clients we have today and those we intend to attract in the future.”

Following this line, Rent the Runaway, an online merchant that offers designer dress and accessory rentals on a subscription basis, is enhancing the shopping experience to foster growth.

To make this happen, the company outlined an strategy in April based on three pillars:

The first pillar focused on inventory and will involve investing $69 million to $72 million in rental products; the second pillar aimed to increase the platform’s website speed and create more personalized onboarding for users; and the third pillar focused on improving product discovery, allowing subscribers to rent complete outfits. 

Merchants who understand the importance of the different features during the subscription process can grow their subscriber base. Providing options like free shipping, customizable subscription frequencies, customer consent before renewals, or guarantees of refund boost customer satisfaction and loyalty. So far, clothing and accessories retailers seem to have done the best in this regard.