What's Happening?
Fabletics, a U.S.-based athleisure brand, is expanding its wholesale business in Europe to complement its core digital clothing subscription service. The company is partnering with retailers such as Peek&Cloppenburg and gyms like Holmes Place to increase visibility and reach new markets. This strategic move aims to stabilize sales post-COVID-19 and capitalize on the growing trend of performance wear in everyday fashion. The brand's collaboration with Khloé Kardashian has also helped attract wholesale partners and increase brand recognition.
Why It's Important?
The expansion into wholesale markets is crucial for Fabletics as it seeks to diversify its revenue streams and reduce reliance on its subscription model, which faces challenges in certain European markets like Germany. By increasing its presence in physical retail, Fabletics can offer customers the 'touch and feel' experience that online platforms lack, potentially boosting sales and brand loyalty. This strategy also allows the brand to tap into markets where it previously had limited presence, thereby increasing its competitive edge in the global athleisure market.
What's Next?
Fabletics plans to open a new flagship store in Berlin by 2026 and is reviewing other potential store locations in Europe. The company aims to establish 15 to 20 brand stores over the next two to three years. Additionally, Fabletics will be present in 115 Peek & Cloppenburg stores across Germany, Austria, and Eastern Europe starting in 2026. These efforts are part of a broader strategy to enhance brand visibility and capture a larger share of the European market.
Beyond the Headlines
The expansion of Fabletics into European wholesale markets highlights the evolving consumer preferences towards performance wear as part of everyday fashion. This shift could lead to long-term changes in the fashion industry, with more brands adopting similar strategies to meet consumer demand for versatile and comfortable clothing. The partnership with high-profile figures like Khloé Kardashian also underscores the importance of celebrity endorsements in driving brand growth and consumer engagement.
