Brick-and-Mortar Shops Bet on Startup Tech to Bring Back Customers

Like many retailers, French Connection has seen its sales falter in recent years. The U.K.-based clothier hopes to improve its position with insights from a vendor some peers would regard as part of the problem: Le Tote, a five-year-old fashion rental service. “All we know is what went out the door and what was not returned,” says Carolyn Glynos, vice president for U.S. sales and merchandising at French Connection, which sells through its own stores as well as through third parties. In contrast, Le Tote has amassed a vast trove of knowledge about its customers’ preferences, along with the fit and quality of individual items—some of which it’s willing to share with French Connection and its other suppliers at no charge.

Le Tote’s customers pay as little as $39 a month for a customized selection of clothing and accessories from French Connection, Vince Camuto, Joie, and other labels. Each customer receives a box with items she can purchase or return after a few wears. New subscribers are asked questions about their style preferences, which helps determine the contents of each shipment. They’re also prompted to provide feedback on items they received, including fit, color, and number of times worn. The information helps the company ensure that subsequent deliveries contain more hits and fewer misses. About 75 percent of merchandise sent out garners reviews, says Le Tote’s chief merchandising officer, Ruth Hartman, which is far higher than for most online retailers. “We’re building a recommendation engine around clothing,” says Charlie Bowman, the company’s vice president for engineering.