Report: Stitch Fix Customers, New And Existing, Are Spending Less
When Stitch Fix went public in the fall, it boasted profitability, despite raising a modest $42 million in capital. But can the subscription clothing startup sustain that momentum? A report by the Information claims Stitch Fix might face issues with customer retention–and that new customers to the service reportedly may not be as valuable. Customers who use Stitch Fix for two years spend less the second year than they do during the first year, according to the Information, which obtained data on credit card transactions. And new users reportedly spend less overall: Customers who joined in Q1 2017 spent $172 on average, $6 less than users who joined in Q1 2016, and that gap widened to $13 by Q4, with customers spending $195 on average. A decrease in spending could be, at least partly, the result of Stitch Fix users tweaking their price preferences, or using the service less frequently while still remaining customers. Read more at Fast Company.
