Subscription model can be a good chance for retailer?

What is your first image of "subscription business model"? I'm pretty sure that most people will first remind newspapers or magazines. If you are running a website or doing business involved in computer, your answer might be internet service based on subscription. Likewise, even though subscription business model has expended its territory up to cellphone market, automobile and so on, this model is still considered as a business strategy best matching for media and some internet service. However, I believe that this is the moment for "subscription model" to meet a new business partner, which is retailer.
I'd like to introduce new retail idea adopting subscription model for selling products. Plus, I want to tell you why this is worth getting our attention.

Panty by Post

Mailed monthly 



Panty by post launched in 2010 provides a selection of women's and men's underwear by monthly subscription. You can sign up for subscriptions lasting  two, three, six or 12 months, then a different panty from the collection you choose from is delivered with cute packaging every month. You can also order a single panty or two pair without subscription.

Do you want more information?
http://www.pantybypost.com/

What matters to retailer?
If you are working in this field, or you are planing to do someday, you need to take a moment to perceive about this concept because it can bring sellers and customers lots of benefits, especially sellers.  
First of all, getting customers with subscription means that it's easier to caculate expected revenue and cost.
This can help sellers to plan their money and most importantly reduce their inventory. 

Moreover,  subscription business will be able to manage customer service better and develope long-term loyalty. As many statistics have shown, keeping customers with loyalty rather than chasing new customers can bring more profits. Ultimately, this is such a ideal model to make a business stable and develop the brand. From the perspective of customers, as long as they are contented to the service and product, they will be more pleasant with this concept because they will be treated even better as a regular customer and also save money for the same product and service, it's even more convenient as well. 

Considering all benefits you will get from this, you may as well take it into your consideration for your next step.


Where can it be reasonably used?

According to my personal analysis, giant retailers like Walmart could be right for this subscription model.

Since they've already been runing a website for taking a order and providing delivery serive, it will take a lot more less efforts to introduce this model. I assume that they will be able to attract substantial customers because most people use some commodites on regular basis like toilet papers and toothpaths. Sometimes they feel lazy to shop for them over and over. Thus, they will feel convenience if they can get the delivery they often need without any incovenient process, and with cheaper price. Then, they might be willing to become loyal customers for who provide such a great service and products.