Subscription Retailers’ Expansion Strategy? Holiday Gift-Giving

Giving a subscription allows a single gift to stretch well into the future, and they are becoming increasingly popular: 32% of shoppers have received a subscription as a gift, and 44% are at least somewhat likely to give one, according to a study by Magid. Introducing a subscription into a household is a crucial step for many retailers, as the intention to renew is 85%.

The average U.S. household has 3.7 subscriptions, and 25% of them currently have more subscriptions than they did six months ago. Gifts may be partially responsible for this rise, and many shoppers are considering giving a subscription out in the next 12 months across a number of categories, including:

  • Kids/Baby Foods: 48% have been gifted subscriptions, 18% are somewhat or very likely to gift;
  • Kids/Baby Non-Food: 40% have been gifted, 19% would gift;
  • Clothing/Fashion: 36% have been gifted, 23% would gift;
  • Home: 34% have been gifted, 22% would gift; and
  • Meal Kits: 31% have been gifted, 23% would gift.

Even for retailers with more traditional business models, subscriptions can provide a sales boost. In the U.S., 41% of revenue comes from returning or repeat purchasers, even though they represent just 8% of all visitors, according to OrderGroove. Repeat orders generate more revenue for retailers while offering convenience for customers.

Subscription services still represent a relatively small portion of the retail industry: the Subscription Trade Association (SUBTA) found that 66% of providers have 1,000 or fewer monthly customers. However, the industry is poised to hit the mainstream. Amazon has launched a dedicated subscription section, where shoppers can sign up for monthly boxes from Loot Crate, Allure and other brands.


Other signs of growth in this sector include:

Featured Event

Join 5k+ attendees for an immersive experience where you can get inspired by retail’s most innovative minds and see their big ideas in action.



Access The Media Kit


Access Our Editorial Calendar

If you are downloading this on behalf of a client, please provide the company name and website information below: