Stitch Fix Acquired Finery's Tech and IP. Here's What's Next

Stitch Fix is one step closer to making Cher Horowitz's wardrobe a reality. It just acquired tech and intellectual property from Finery, a wardrobe solution startup that arranges users’ wardrobes from their phones.

The details: Two-year-old Finery’s app scans users’ online shopping receipts, uploads them to a digital closet, and helps sort clothes and create outfits. It also sends push alerts for sales at customer-favorited retailers.

The returns: Stitch Fix hasn’t said how it’ll use Finery’s tech and IP moving forward. Existing customer data from Finery’s old user list isn’t making the move, and old customers have the option to join Stitch Fix for a discount. But with its over 3.1 million active users, Stitch Fix seems to be looking for ways to interact with customers beyond a monthly mailing.

The takeaway: As retailers from Amazon to Nordstrom encroach on Stitch Fix’s personal styling territory, industry originators need more distinctive services than try-before-you-buy and personal styling to stand out.