Fabletics, the brand of “athleisure” clothing designed for comfortable, casual athletic and lounge-wear and whose ads feature spokeswoman Kate Hudson, is expanding its stand-alone stores nationwide after a successful reception of its pilot retail locations. The previously online-only company has been a success for JustFab, its parent company. Fabletics, and other JustFab brands, are known for their subscription-based online membership services that allow VIP subscribers to purchase items at a discount. The items are shipped monthly as a subscription, unless you elect to skip a month by the 5th of the month.

Fabletics began rolling out physical stand-alone stores this summer and are seeing about half of their in-store sales from existing VIP members and one-quarter by customers signing up for membership in-store, while the remaining are non-membership retail purchases. With about one-quarter of their customers signing up for membership, Fabletics are seeing a boost in membership from areas that have a physical store.

The physical store locations offer another insight: people who are not making purchases in-store are checking out the merchandise in-store, trying on items, and checking out the quality of fabric, then going online that night to make their final shopping decisions via the website the same night. Customers who are more likely to shop and purchase in-person from retail stores are experiencing the brand in-person and like what they’re seeing. For Fabletics, it is a win-win situation.

JustFab is working on building up to 100 Fabletics stores within the next five years and are also working on expanding their products to include more men’s items, and introduce swimsuits and dresses. The line often called, the “Kate Hudson brand’ after its spokeswoman and co-founder has seen success from her image. Kate Hudson is known for encouraging women to lead healthy, active lifestyles. Her spin on the brand has resulted in fashionable, wearable, athletic fashions that are bright, colorful, and fun.

JustFab’s move from strictly online company to an internet and retail store combination is nothing new for e-retailers. Blue Nile and Amazon are both internet based businesses that expanded into physical retail stores successfully. JustFab joined both retailers last year in the top 100 of the Internet Retailer 2015 Top 500 Guide.

It has not yet known the impact the physical stores have had on JustFab’s profits, but according to Gregg Throgmartin, the numbers are very positive. The brand was on-track to make $250 million as of February of this year, so the final numbers should be very interesting for investors. With the announcement of future stores in the planning process, it is very likely that they will meet or exceed those numbers. More details are available at Racked.

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