| 2018-09-19 12:47:07|
SFIX, AMZN 12:47 09/19 09/19/18
Stitch Fix drops following report Amazon testing recommendation service
Shares of personal style service platform Stitch Fix (SFIX) are dropping in afternoon trading following reports that Amazon (AMZN) is testing out a new service called Scout, a shopping site for consumers who aren't sure specifically what they want to purchase but are willing to take some automated recommendations. CHALLENGE TO STITCH FIX: Stitch Fix describes itself as an online styling service that delivers "a truly personalized" shopping experience. On its website, Stitch Fix says "It's our mission to change the way people find clothes they love by combining technology with the personal touch of seasoned style experts. The Stitch Fix experience is not merely curated-it's truly personalized to you. We're here to help you save time, look great and evolve your personal style over time." In an almost direct challenge, Amazon's Scout using machine learning technology to address the site's browsing woes, CNBC said. Scout is currently available for home furniture, kitchen and dining products, women's shoes, home decor, patio furniture, lighting and bedding, with more categories coming soon, according to the report. "This is a new way to shop, allowing customers to browse millions of items and quickly refine the selection based solely on visual attributes," an Amazon spokesperson said in an emailed statement. "Amazon uses imagery from across its robust selection to extract thousands of visual attributes for showing customers a variety of items so they can select their preferences as they go." PRICE ACTION: Shares of Stitch Fix are down 9.5% to $45.73 in afternoon trading.
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