Why JackThreads Pivoted To Its New Business Model

What Happened
Online men’s clothing retailer JackThreads is moving away from the deep discounting it has been known for since the site launched in 2008. Instead, CEO Mark Walker says JackThreads will pivot to a “try-at-home-before-buying” model, which gives customers a week to decide whether they want to keep what they ordered before their cards are charged. All orders will come with free delivery and free returns. The company is also in talks with on-demand shipping startups Shyp and Happy Returns, hoping to integrate their services into its app so as to make the return process as friction-free as possible.

What Retailers Need To Do
JackThreads’s pivot points to the diminishing returns of the online flash-sale fad due to the unsustainability of that business model. By granting customers a generous week-long tryout period and removing all the hassles surrounding online shopping and returns, JackThreads is bringing the fitting room into the online shopping experience and encouraging its customers to shop more – at full price. This pivot provides a great example in how retailers can modernize their shopping experience to meet the demands of connected shoppers.

For more information on this topic, check out the Boundless Retail section in our Outlook 2016.


Source: Recode