January 18, 2013, 10:55 AM

E-retailer JustFab moves into children’s apparel with acquisition of FabKids

Apparel e-retailer JustFab says 25% of its 10 million members have children under age 10.

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Fashion-focused e-retailer JustFabulous announced today it has acquired similarly named members-only children’s clothing e-retailer FabKids.

JustFab will operate FabKids as a sister brand under the JustFab umbrella. That means consumers will be able to use the same log-in and password on both sites—and the sites will be linked via a single shopping cart. Andy Moss, CEO of FabKids, will continue to oversee the FabKids brand.

The move enables the shoe, handbag and apparel retailer to move into children’s clothing more quickly than would have if it decided to pursue the category on its own says Adam Goldenberg, JustFab’s co-CEO. Children’s apparel is a category the retailer was looking to add because the retailer’s customer surveys have found that roughly 25% of the of the retailer’s more than 10 million members have children under the age of 10. As JustFab grows it aims to add more categories, such as home décor, Goldenberg says. “What we’re building with JustFab and FabKids is the next generation Zara or H&M,” Goldenberg says. “In the future we’ll offer every category you find in those types of stores.”

However, unlike those two Europe-based fast-fashion retailers, JustFab is a subscription retailer that, for $39.95 a month, offers members items tailored to their tastes each month. JustFab sends members monthly e-mails describing the items the retailer is offering. That keeps members returning to the site, which makes them particularly engaged, Goldenberg says. (Members can skip buying any month, as long as they notify JustFab by the fifth of the month.) Fast fashion refers to merchants that translate the latest fashion runway styles and get them into stores quickly.

FabKids, which launched last August, has about 100,000 members. The brand, which currently sells girl’s clothing, plans to expand into boys clothing in August and then begin selling internationally in spring 2014, says Moss. By linking up with JustFab, FabKids will be able to leverage JustFab’s infrastructure, which includes German and U.K. distribution centers, Moss says.

H&M, based in Sweden, is No. 67 in the Internet Retailer Top 400 Europe; Zara parent company Inditex, is headquartered in Spain, is No. 141.

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