1. Stitch Fix hits 3M active clients
Stitch fix has reportedly hit 3 million active clients. In a letter to shareholders, the company attributed the increase in active clients to increased investments in Data Science. The company reportedly developed a new inventory optimization algorithm about three months ago, which ensures inventory is allocated across Stich Fix’s network. The company said that historically, the inventory allocation was optimized based on which client was the first in the Fix queue. However, the new algorithm considers the preferences of a broader universe of clients in the queue as it determines what inventory should be made available to the stylists as they style for each client. According to Stitch Fix, based on early results, this algorithm has increased customer satisfaction, basket size, and average order value. Meanwhile, it’s Q2 earnings showed a 25% YoY growth in net revenue and a diluted EPS of $0.12.
2. PayPal to invest $750M in MercadoLibre
MercadoLibre has announced that PayPal is investing $750 million, and investment firm Dragoneer another $100 million, as part of a $1.8 billion equity offering to grow its business, according to Techcrunch. The investment is reportedly both a strategic and financial one for MercadoLibre which sold more than 334 million items in 2018, amounting to over $12 billion in GMV.
3. Legal Cannabis market to reach $166 billion in six years
The global cannabis market, both legal and illicit, stands at $150 billion today, according to a white paper by Euromonitor International. Legal cannabis sales as of last year was $12 billion. This is expected to grow 14 times in the next six years. By 2025, legal cannabis will reportedly represent 77% of the global market, Euromonitor said. Zora Milenkovic, head of drinks and tobacco at Euromonitor International said: “From a functional ingredient to an intoxicating buzz, cannabis will reshape fast-moving consumer goods, with food, beverages, beauty, health and tobacco having the most potential for disruption.”
4. 50% of all US households will belong to Amazon Prime – eMarketer
51.3% of US households will have an Amazon Prime subscription by the end of 2019, according to forecasts by eMarketer. That would represent an additional 5.2 million new households from 2018. According to eMarketer, growing participation of lower-income households and consumers attracted to the platform’s new offerings, combined with free and fast delivery are helping fuel Amazon Prime’s rapid growth in the U.S.