What started out as an online subscription service startup by “Almost Famous” actress Kate Hudson has turned into a $250 million brand, and the business mogul is now looking to expand her business beyond the world of online retail by opening up to 100 brick-and-mortar stores worldwide on Wikipedia.org. Hudson has proven herself as an expert in the retail world, capitalizing on the “athleisure” trend to create a multi-million dollar success story.
It was only three years ago that Hudson developed Fabletics with its parent company, Techstyle. Hudson knew that the “athleisure” trend, a trend in which women wear athletic gear as everyday wear, was growing, and developed her company around this new style. Her online retail brand, Fabletics, allows customers to pay $49.95 per month to have athletic gear directly shipped to their door.
Hudson put an emphasis on social engagement and customer interaction, resulting in a company with over one million subscribers. Due to the success of the company, Kate Hudson has since expanded, opening up several brick-and-mortar stores in which to sell the Fabletics’ trend-setting athletic apparel.
The first store, which opened in September of 2015, is located in Woodland Hills at The Village at Westfield Topanga in Canoga Park, CA. Shortly after the launch of the first store, five more locations opened up in various cities and towns spread across the country.
Many have questioned the Fabletics’ decision to open brick-and-mortar stores in a retail world that is ruled by e-commerce. With so much revenue in online sales, some wondered why Hudson would invest in physical store locations. As it turns out, according to data released by the Goldman Sachs 2016 DotCommerce report, 50% of retail sales still take place in brick-and-mortar stores, meaning that physical retail is still an incredibly lucrative next step for any online business.
The risk has paid off. The new stores are all reporting large amounts of revenue, and the online subscription service is thriving more than ever. According to Hudson and her parent company, Techstyle, Fabletics is aiming to open up 100 new stores within the next three to five years, as the “athleisure” trend is clearly going nowhere.