Luxury Shoppers Are Paying $100 to Join This Invite-Only Fashion Club

Cake members can use one of their “cards” to score major savings off a pair of Larroudé heels, like these patentleather “Morgan” sandals, priced at $330. / Photo by Steph Larsen / Styling by Madison Trapkin

Members can use a Cake card to knock $150 off the $695 price of Phillip Lim’s “ID” shoulder bag in azure; memberships to the online shopping community are invitation-only. / Courtesy photo

When was the last time you shopped in a department store for a dress, a pair of jeans, or even new shoes? If you’re anything like us, the answer is probably a while. While Bostonians may have once had loyalty to Saks, Bloomingdale’s, or the impeccably curated emporium of luxury style that was Louis Boston (RIP), those days are long over. The ability to hop from website to website, shopping for everything under the sun, has lured many high-end shoppers away from department stores—while at the same time encouraging a proliferation of new brands selling distinctive, well-made clothing and accessories directly to consumers.

What online shoppers have never gotten, however, are the loyalty perks—discounts, rewards, and more—that are a hallmark of the department store experience. And that’s where Cake comes in. The invitation-only membership community gives exclusive access and discounts to top-tier fashion and beauty brands such as Veronica Beard, Phillip Lim, Staud, and Mansur Gavriel. “We want members to feel like insiders and for these brands to make them feel special,” says cofounder Estelle Palandjian, who recently launched the venture with Dave McLaughlin, a former WeWork exec, and partners including Ben Fischman, the founder of baseball-cap retailer Lids and the fashion startup Rue La La.

Photo by Steph Larsen / Styling by Madison Trapkin

So how, exactly, do they make customers feel special? Membership costs $100 annually and includes 10 Cake “cards,” ranging in value from $50 to $450, to be used on items from the current collections of brands within the network. Members—who, upon joining, can extend invites to a few friends—are privy to perks like early access to new collections, gifts with purchase, and sales as well as exclusive in-store parties, where guests leave with swag bags. Additional bonuses extend to non-fashion brands, including luxury-homeware-store discounts, free manicures at new salons, and deals for online fitness memberships. The platform launched in New York last fall with events in SoHo; plans for a Boston event later this spring are in the works.

For those wondering about the cost for brands to be part of the platform: There is none. Cake’s founders say that they’re making money solely from memberships. “We’re sending brands a direct-to-consumer customer,” McLaughlin says. “If they don’t buy anything, they haven’t had to spend money to attract her attention.” But have you seen those shoes? Good luck not buying anything.