Apparel retailer Gap launches its third subscription box after low returns and high retention rates from its initial babyGap Outfit Box.

Gap Inc. this week began offering a pajama subscription box called BedtimeBox. The product is similar to, but distinct from, its other subscription box product line babyGap Outfit Box.

The BedtimeBox includes three sleep sets for $49, which is roughly a 40% discount from the full price of the items.

Shoppers choose their child’s gender and size, and Gap will select the pieces to include. Shoppers can return any pieces they don’t want for free. The boxes arrive every three months, which is the same time frame as the babyGap Outfit Box.

“The new BedtimeBox is another way for us to move closer to the customer and fulfill their needs with sleepwear, which is a category we know parents need to restock constantly as their child grows,” says Margaret Yang, senior director of buying, Gap Kids and Baby Online.

The retail chain is expanding its subscription boxes because of its high retention and low return rates with the Outfit Box, which has had three boxes to date, Yang says, without revealing specifics.

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“As the subscription box scales, there are some changes in the numbers, but overall we’re seeing low returns, high retention and we’re bringing in a number of new customers to Gap through the model,” a Gap spokeswoman says.

Gap introduced its initial subscription box in May 2017 and also launched a subscription outfit box for kids called Superbox with its Old Navy brand in November 2017.

From the retailer’s babyGap Outfit Box test, 76% of shoppers kept all of the items in their box, and 91% of shoppers who received one box signed up for a second box, a Gap spokeswoman told Internet Retailer in November.

Plus, 35% of the Outfit Box customers were either lapsed customers, meaning they haven’t made a purchase in more than one year, or new customers, the spokeswoman said.

Gap is No. 24 in the Internet Retailer 2017 Top 1000.

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Within the top online retailers, six traditional retailers including Gap are now offering a subscription service in some form. This does not include retailers that are primarily a subscription service, such as Stitch Fix Inc. (No. 134) or Blue Apron Inc. (No. 197). These merchants are:

  • Target Corp. (No. 20)
  • Under Armour Inc. (No. 36)
  • SmartPak Equine LLC (No. 261)
  • eSalon.com LLC (No. 488)
  • Sally Beauty Supply LLC (No. 529)
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