Stitch Fix told stylists to hide the algorithm and own its misses, per stylists

Retail Dive reported on May 9, 2022 that, about three weeks earlier, Stitch Fix had sent its stylists an internal message. According to the communications Retail Dive obtained, it told them not to use terms 'unknown to clients such as AGP or algorithm' in their notes. It also said that when the stylist-data partnership fails the client, stylists 'should take ownership of the disappointment, no matter the role the data played.'

Stylists said they had earlier been told to say the algorithm is always learning and does not always get it right. The new line, they told Retail Dive, came with Fix Preview, an email sent before a box ships so subscribers can accept or reject suggested items. When clients disliked the preview, they assumed their stylist was ignoring them. Stylists said the algorithm often selected the preview items and they could not say so.

One stylist asked what the $20 styling fee was for if clients believed a human was always involved when that was not always so. Stitch Fix said the preview mixes technology and stylist expertise depending on the client, and did not say how often the algorithm alone produces it. Its consumer site promotes 'real people who really get your style,' while its investor materials stress data science.

Fix Preview put the picks in front of clients before shipping, so bad suggestions were visible and blamed on stylists.

Stitch Fix told investors its edge was data science but told customers it employed real people, and the stylist directive kept the two stories apart.

Retail Dive reported that the company did not answer its questions about the directive.

Selling a human touch to customers and a data edge to investors works only while the stories agree. Telling staff to hide the system and take the blame raises doubts about what customers pay for.

Retail Dive's experts argued that more transparency about the algorithm would serve Stitch Fix better than less. One said telling stylists to take the blame was irresponsible and would hurt morale. At press time, Stitch Fix shares were around $10, down from nearly $100 a year earlier. The article does not report any change to the directive.