Not mentioned in this article is how the grunge look is making a comeback and keeping the aisles in Salvation Army Stores and Goodwill Stores filled with the very young looking for that one old t-shirt which will explain their “lying flat.” (Chinese term, that one, but, it also holds in the USA.)
CNBC headline: Clothing subscriptions like Stitch Fix were once hot – but now might be the victims of ‘box fatigue’
PUBLISHED FRI, AUG 12 20226:00 AM EDT
Retailers rushed to enter the subscription space, curating boxes of clothing and other items. But consumers are showing signs they’re no longer interested.
Stitch Fix, launched in San Francisco in 2011, is struggling to be profitable.
Trunk Club, which was acquired by Nordstrom for an undisclosed amount in 2014, no longer exists.
$SFIX sounds like it is suffering the $NFLX malaise:
“This puts into question the longer-term membership potential,” Bellinger said, noting that inflation and other macroeconomic challenges could bring more cancellations.
In the company’s most recent quarter ended April 30, Stitch Fix said it lost 200,000 active clients, bringing its total count to 3.9 million. Its net loss ballooned to $78 million, from a loss of $18.8 million a year ago. The company announced it was laying off 15% of its salaried workers, or about 330 people.
To attract new customers, Stitch Fix expanded the rollout of its “Freestyle” option last fall that lets shoppers buy single items from its website without signing up for a plan or paying a styling fee. But the company is still trying to ensure people know the option exists.
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