Today in retail, Rent the Runway benefits from a resurgence in social gathers, while Stitch Fix, continues to struggle. Plus, the Consumer Price Index jumps 8.6% in May, Amazon jumps into artificial intelligence (AI) with Virtual Retail for Shoes, and Chari acquires retail app Diago as part of continuing African expansion.
Rent the Runway Benefits From Boost in Weddings, Social Gatherings, Travel
More people enjoyed weddings, social gatherings and increased travel during the first quarter of fiscal year 2022, leading to a record active subscriber count for Rent the Runway in the three months through April 30. Rent the Runway’s revenue was also up 100% year over year for the first quarter. Consumers turning to Rent the Runway for an affordable way to dress well for social gatherings, as the company’s revenue was $67.1 million, double its $33.5 million in the first quarter of fiscal year 2021.
Stitch Fix Cuts Workforce as Customers Leave
Artificial intelligence (AI)-powered personal styling site Stitch Fix continues to struggle to retain existing customers and captivate new ones, leading the company to slash about 4% of its workforce during the third quarter of fiscal year 2022. Stitch Fix eliminated about 15% of salaried positions in the move, with the bulk of the layoffs in non-technology corporate roles and styling leadership roles. With the layoffs and other corporate restructuring, Stitch Fix expects annual cost savings of $40 million to $60 million in fiscal year 2023.
America’s Soaring Food and Fuel Problem Drives 8.6% Increase in May’s Inflation
Double-digit increases in the price of gasoline and food combined to push the overall Consumer Price Index 8.6% higher in May, a move that not only topped economists’ already pessimistic fears but marked a fresh 41-year high in the cost of basic everyday life. According to the Bureau of Labor Statistics, the index posted across-the-board cost increases in every category with notable advances in shelter, air fares, and new and used vehicles, as well as outsized moves in medical care, household furnishings, recreation and apparel.
Amazon Adds Virtual Try-on for Shoes
Amazon is using AI-based innovation to drive eCommerce sales, debuting Virtual Try-On for Shoes, an interactive mobile experience that allows customers to visualize how a pair of shoes will look on them. The tool will better inform purchasing decisions, and U.S. and Canadian users can access it through the Amazon shopping app on iOS.
Morocco’s Chari Buys Retail App Diago
Moroccan B2B eCommerce platform Chari has acquired Diago, a retail app based and operating in the Ivory Coast city of Abidjan. The all-stock transaction will see the combined entity manage local business growth before branching out to other countries in Sub-Saharan Africa. Chari’s goal is to replicate its success in Morocco in other French-speaking African nations. The company has already expanded into Tunisia.