Stitch Fix's Chief Merchandising Officer, Loretta Choy, reveals how the company navigates the turbulent retail landscape by leveraging billions of data points to inform product assortment and strategic growth. The episode highlights Stitch Fix's agile response to changing consumer demands, particularly the pandemic-driven shift towards athleisure, and its data-driven approach to expanding into underserviced demographics for customer acquisition. This is a must-listen for ecommerce operators looking to understand data's pivotal role in merchandising and growth.
According to Loretta Choy, chief merchandising officer at Stitch Fix, data is one of the most important factors in fulfilling the Stitch Fix customer's personalized demands. Choy joined the Stitch Fix team in 2019, only a few months before the pandemic upended the workforce. She said her team's ability to adapt and analyze data was key to keeping the business afloat. Choy's team uses billions of data points to inform which products and new categories Stitch Fix introduces to its assortment. Under her leadership, Stitch Fix added athleisure and activewear to its offerings after noticing consumer shopping trends had shifted. "We were thinking, 'How do we ensure during Covid that we have apparel that is right for [the consumer]?" Choy said on the latest episode of the Glossy Podcast. "Some of the [demand we saw] from our clients was item [specific], but often, it was about the end use. It was about, 'How [do] I shift my look or my wardrobe?' Those were important data inputs we received." Choy admitted that working in traditional retail environments for close to 20 years presented a slight learning curve when joining Stitch Fix, but she said the transition enabled personal growth. Now that Choy feels more settled in her role, she is focused on expanding Stitch Fix's men's, children's and womenswear into more apparel categories. The executive's expansion efforts are in line with Stitch Fix's growth strategies. Stitch Fix announced during its Q4 earnings report conference call on Tuesday that its net revenue and active clients in the quarter were lower than expected, due to a turbulent retail market. However, leveraging Choy's intentional use of data, the company hopes to tap into under-serviced demographics and increase consumer acquisition.