In its third quarter financial result of the fiscal year 2023 (6 June), Stitch Fix mentioned it was exploring an exit from the UK market and it has now confirmed through an Instagram post that orders will progressively decrease and end by 31 October.
When it announced the possibility of the exit after its net revenue dropped by 20% in its Q3 it said:
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“Since we entered the UK market four years ago, the macroeconomic environment and our business have changed… we have concluded the need to explore exiting the UK market in FY24.”
Its decision came down to its ongoing strategy refocusing, initiated in a bid to improve efficiency and maintain profitability.
Stitch Fix first launched in the UK in 2019, in a bid to change consumer shopping habits.
In its social media post, the company said: “Stitch Fix was inspired by a very human problem: to help people look and feel their best by finding clothes they love.
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By GlobalData“Over the past four years, we’re proud to have helped thousands of people in the UK discover their personal style. Now, we’re sorry to say that our Stitch Fix UK journey is coming to an end.”
In the past year, Stitch Fix has seen a number of leadership changes with founder Katrina Lake resuming the role of CEO in January, which was later passed on to Matt Baer in June, a former executive from Macy’s with a background in customer relations and digital operations.
As a result of its exit, the company known for providing customers with items from over 100 third-party brands such as Hobbs, Dune, Seasalt, Ted Baker and Levi’s is offering customers a “thank you sale” through which customers can receive 70% off five items and 50% of four items.
“Being on this journey with you has truly been a privilege, and we’ll always be grateful we had the opportunity to style you,” said Stitch Fix.
