Can Former Macy’s and Walmart E-comm Exec Fix Stitch Fix?

Stitch Fix has named former Macy’s and Walmart executive Matt Baer its new CEO.

Mr. Baer, who will also join Stitch Fix’s board of directors, will work with founder and interim CEO Katrina Lake as he transitions into this new role.

Ms. Lake said in a statement that she was impressed by Mr. Baer’s “experience across all areas of retail businesses and his ability to identify the interconnected opportunities to positively impact the experience of our clients in the short term while inspiring our teams to deliver an impactful vision for the future.”

“I’ve long admired what Katrina has built with Stitch Fix – fusing AI with stylists to offer the most convenient shopping experience out there today,” said Mr. Baer. “People are looking for a better way to look and feel great. Stitch Fix is uniquely positioned to deliver that for them.”

Mr. Baer most recently served as chief customer & digital officer at Macy’s, Inc., where he oversaw the digital businesses of Bloomingdale’s and the company’s namesake chain. He was involved in launching or scaling initiatives including redesigning the Macy’s app and website, Macy’s Live livestream shopping, the retailer’s third-party marketplace, same-day delivery, in-store and curbside pickup.

Stitch Fix’s new CEO was vice president of eCommerce at Walmart.com before joining Macy’s.

Ms. Lake speaking last week to analysts on Stitch Fix’s third-quarter earnings call said that “preserving profitability and cash flow remain top priorities” in the near term.

Stitch Fix has sought to reign in costs and announced it would close fulfillment centers in Bethlehem, PA, and Dallas. The facilities will be phased out to avoid disruptions in service as Inventory is moved to Stitch Fix’s remaining warehouses in Atlanta, Indianapolis and Phoenix.

“We have developed a three-node strategy that will allow us to more optimally serve the entire country and simultaneously showcase the greatest breadth and depth of inventory to our clients and stylists,” said Ms. Lake. “This consolidated network will allow us to deliver a better client experience, with access to more inventory for a given fix, while, at the same time, allowing us to operate with lower, more cash-efficient inventory levels.”

Ms. Lake says the three remaining fulfillment centers could expand capacity going forward if demand warrants.

Stitch Fix reported that year-over-year sales fell 20 percent in the most recent quarter with its net active customers down 11 percent.