Racked is no longer publishing. Thank you to everyone who read our work over the years. The archives will remain available here; for new stories, head over to Vox.com, where our staff is covering consumer culture for The Goods by Vox. You can also see what we’re up to by signing up here.
It's full speed ahead for Kate Hudson's Fabletics, despite customers' allegations that the activewear company's subscription-based model is a scam. Forbes reports that Fabletics wants to open 75 to 100 stores over the next three to five years. The brand is opening its seventh store this spring.
Not only will shoppers be able to try on Fabletics clothing in person, but Fabletics stores staffers will try to recruit shoppers to join the brand's subscription service, which sends them discounted outfits once a month and charge their credit card accordingly.
Fabletics customers complained that they didn't realize that they were opting into the program and then found it difficult to get out of it.
Adam Goldenberg, the cofounder and co-CEO of JustFab (Fabletic's parent company), told Forbes that Fabletics is now receiving fewer complaints than in the past, clocking five to 10 a month.
"For us, five to 10 complaints is five to 10 too many, but in a typical month we’re sending out 800,000 items," Goldenberg said. "Largely speaking, customers really like this program."
Forbes ran this by the Better Business Bureau, which confirmed that Fabletics is receiving fewer complaints but added that this lower number of complaints is partly the result of JustFab starting to list its subsidiaries like Fablectics separately.
JustFab is also revamping its Fabletics FAQ section and upgrading its customer service system.
"We want every single one of our customers to understand how the program works," Goldberg told Forbes.