Retail and consumer goods subscriptions fell 3.5% year-on-year, making the sector the only major category in decline, according to Recurly’s latest State of Subscriptions report. Analysing over 100 million subscriptions globally and using data from brands like Paramount+ and Twitch, the study reveals a sector grappling with changing customer expectations.
The 3.5% decline comes despite overall subscription growth of 8.3% over the same period. This is frustrating for retailers – but the report indicates the drop in retail subscriptions is not due to falling demand, but to consumer frustration with a lack of flexibility. One major issue is rigid pricing and limited options to pause or adjust plans. While 38% of subscribers would prefer to pause rather than cancel, many retail and DTC programmes still do not offer this choice.
Intentional shopping
Another major factor in retail subscription churn is that consumers are becoming more intentional with their shopping. Data from the report shows two-thirds of consumers (67%) maintain one to four subscriptions, with 77% saying they have the right amount. Loyalty drivers include cost, convenience and values such as sustainability, as shoppers become more selective in their purchasing decisions, regularly reevaluating their subscriptions.
Subscriptions that give consumers more than they want or need – at a cost – are at high risk of being cancelled. A quarter of consumers say value now means paying a fair price for what they actually use, according to Recurly’s data. As a result, the next evolution of subscription commerce is based on usage-based or hybrid pricing. Flexible pricing ranked as the most important form of personalisation for 65% of subscribers.
At the point of purchase, price and “value for money” remain the strongest motivators, cited by 86% and 88% of consumers respectively.
New subscription models
Recurly’s findings come as more retailers experiment with new subscription models, pairing loyalty programmes with replenishment or blending one-off purchases with ongoing benefits. The report signals that execution is critical and consumers are increasingly selective about the plans they commit to.
This shift is reflected across the wider subscription economy. Growth slowed in 2025, falling from 15.4% to 12.6% as market saturation, rising competition and more cautious household spending took effect. Retail’s decline stands out: other sectors continued to grow, though at a more moderate pace. Video and audio remain the strongest categories, with 86% and 53% adoption respectively.
What’s clear is that the retail sector needs to adapt to a changing environment if it’s to return to subscriptions growth. “The old funnel has changed,” said Brian Geier, Recurly’s VP of business intelligence. “Growth is no longer about who spends the most. It’s about how well you connect conversion, payment, and retention in one loop.”
Subscribe!
Our editor carefully curates two InternetRetailing newsletters a week filled with up-to-date news, analysis and research. In addition to this, there is a dedicated newsletter focusing on the subscription economy every second Wednesday – click here to subscribe for free. And why not follow us on LinkedIn to receive the latest updates on our research and analysis?
