In June 2022, Stitch Fix lost 370,000 customers, which equals 9% of its active client base! Here's what went wrong:
This is proof that sometimes the customer ISN'T "always right". Stitch Fix chose to listen to the internet and expand their product line to "be more inclusive", which ended up being a MASSIVE backfire! Now Stitch Fix joins Old Navy in attempting to merchandise for more customers, only to scale that back not long after. Its Mohnton Mills closure comes as the apparel box retailer slashes expenses to stem losses.
“As we focus on the strategies that support our return to profitable growth, notably increasing our number of active clients and optimizing our cost base, we have made the incredibly difficult decision to close our operations at Mohnton Mills,” the Stitch Fix spokesperson said Thursday. “While this is the right decision for our business, it is a hard day for our team.”
Efforts to expand representation in fashion and make more sustainable apparel are important to younger consumers, research has shown. Mohnton Made has been offering “relaxed, modern styles” in sizes XS to 3X in women’s and XS to 3XL in men’s. The e-retailer has worked with Green Matters Natural Dye Company to manufacture the clothing with collected rainwater and plant matter.
Stitch Fix said that discontinuing the brand won’t interfere with its goals in the space, however. Some 70% of its owned labels are size inclusive, including its recently launched active and lounge brands, and the company still aims for 100% size inclusivity for all its exclusive brands by fiscal year 2025, the spokesperson said. The company also notesthat many of the name brands it sells, including Madewell, Universal Standard, Vince, Adidas, Beyond Yoga, Cosabella, Good American and Under Armour, have size-inclusive offerings, and it has worked with Amour Vert and Liverpool on size-inclusive collections.
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