In today’s top retail news, Stitch Fix is focusing on its new Freestyle direct purchase feature to make up for its suffering subscription business, while supply chain issues are causing more headaches for production of new Apple products. Also, Wayfair is planning to open three new stores in Massachusetts, and auto parts sales are benefitting from the shortage of new cars caused by low supply of automotive microchips.
Stitch Fix Shifts Strategy to Focus on Direct Purchases With Freestyle Offering
Elizabeth Spaulding, CEO of Stitch Fix, said the company previously may have downplayed the magnitude of the transformation it’s currently going through, telling analysts on a conference all that “it’s a very exciting phase for the business.” The company’s newest offering is Freestyle, formerly known as Shop and Direct Buy, which allows customers to purchase recommended items directly from Stitch Fix rather than having a stylist package and ship a box of surprise suggestions.
Supply Chain Hang-Ups Delaying Apple Product Deliveries
iPhone and iPad assembly stopped for several days in October — usually one of the busiest times of the year ahead of the holiday rush — because of global supply chain bottlenecks and power use restrictions in China, sources with knowledge of the predicament told Nikkei Asia. Apple is millions of units behind its production goals and billions of dollars behind its revenue projections on the iPhone 13 line and new iPads, which were released in September.
Wayfair Bets Stores Can Boost Slowing Digital Sales
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Traffic at physical stores remains on a long-term downward trajectory despite a recent rebound compared to last year’s pandemic lows, but that isn’t stopping retailers from leaning into store openings, with Wayfair as the latest digital brand to announce new brick-and-mortar efforts. The three stores, all located in Massachusetts, will open in early 2022. Two stores will be dedicated to Wayfair’s AllModern brand, which focuses on modern design furniture; the third store will be a “lifestyle space” based on Joss & Main, a brand focused on a mix of contemporary and classic-style furniture.
Auto Parts Sales Get Boost From New Car Shortage
With the automotive microchip shortage expected to last well into 2022, prices for new and used cars remain elevated, leading many consumers to consider repairs and better upkeep of their vehicles over outright replacement. According to the U.S. Department of Commerce, motor vehicle and parts dealers saw a 1.8% increase in monthly sales in October. Year over year, the category saw over 11% increase in sales.
