Guy Meyers, global director of customer success, Recurly, examines why retail subscriptions have faltered as the rest of the subscription economy booms.
The subscription economy continues to go from strength to strength. From established markets like digital media and entertainment to fast-growing sectors such as healthcare and wellness, recurring revenue models are reshaping how consumers access products and services. In fact, our recent 2026 State of Subscriptions report found overall subscription growth of 8.3% year on year across all sectors, proving that demand has never been higher.
Retail, however, is an outlier in 2026. Consumer and physical goods subscriptions have not grown at the same pace as their digital counterparts. In fact, they are the only vertical which saw an overall decrease in subscriptions, so why the difference?
The retail sector at a glance
Retail subscriptions already show up in plenty of everyday shopping habits. Think recipe and meal kits that take the stress out of midweek dinners, curated beauty or gift boxes that offer a bit of surprise through the letterbox, or wine subscriptions that combine convenience with expert picks. These models work because they tap into those everyday conveniences we love, or are specific to our personal interests.
As consumers increasingly look for easier, more predictable ways to buy, it’s clear that the appetite for physical goods subscriptions is there. In an economy that’s still cautious about spending due to the rising cost of living, retailers need to make sure that they are providing an experience that is worthy enough to fit into the average consumer’s budget.
Flexibility and pausing
One of the most encouraging insights from our research is that consumers don’t want to abandon subscriptions – they just want subscriptions on their own terms. Thirty-eight percent of consumers say they are more likely to pause a subscription than cancel outright. That signals intent to return, not to turn away completely.
And while the use of a pause function has grown in recent years, it’s not yet a standard feature of all subscription services – not recognising the value it has in keeping subscribers engaged for the long-run. Digital subscription leaders have shown that building flexible retention journeys by pausing, skipping, or adjusting frequency, increases the overall lifetime of a subscriber.
A broader, more modern definition of value
Value remains central to subscription success, but consumers are redefining what it means. While discounts still matter, one in four consumers now say value is about “paying a fair price for what I actually use.”
By introducing consumption-based or hybrid subscription models – where pricing can be changed based on usage or need – retailers can offer subscriptions that feel fair, transparent and relevant. This approach not only reduces waste but also builds good faith with customers.
Personalisation is often discussed in terms of curation, discovery and preferences, but this is only one side of the story. Flexible pricing options were rated the most important form of personalisation by 65% of consumers, ahead of tailored product selections.
For retail subscriptions, this provides an optimistic outlook. Offering customers control over how often they receive products, how much they spend, or how long they commit for makes subscribers feel like they are in control rather than feeling like they are being trapped.
The prescription
Retail subscriptions have been around for years in one form or another. Think back to the most classic example of a physical goods subscription that even your gran had at one point – milk.
So while this year may be a wakeup call for retailers, it’s certainly not a battle that has been lost. Retail subscriptions need to take a leaf out of the digital playbook and look at what works for them, while tailoring it to the realities of physical goods. By borrowing proven strategies from digital subscriptions – flexibility, curation, variety – retailers have every opportunity to make subscriptions a popular, profitable and long-term part of the consumer landscape.
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