What: Another brand enters the subscription space with an offer aiming at teens and tweens

Why it is important: Even though product subscriptions might not be the easiest for department stores to implement, paid memberships and services subscriptions might be a realistic option to generate an additional revenue stream.

Claire’s, the teen and tween accessories retailer, launches a subscription service to Gen-Z customers with a quarterly accessories and jewelry box, shipped against a subscription of USD 30. There is no commitment into doing so, and there are 3 themes corresponding to different age groups. A one-time purchase is priced USD 32.

The global subscription box market is estimated to have reached USD 18.8 bn last year and expected to grow annually by 20%.

Such a model, including products (as also tested by brands such as On running shoes or Ralph Lauren) might prove difficult for department stores, as they involve a totally different logistic process and structure. However, retailers are also entering this space (Carrefour, Walmart, Best Buy, Shinsegae) and we are convinced that such a service, if it brings the appropriate perks to customers, could contribute to increasing the value proposition of department stores.

Claire's launches its first subscription service