Moms-oriented retailer Zulily dialed down sales expectations for the year Tuesday, as it struggles with faster-than-expected shopper attrition and weighs how to lure more loyal customers to its online deals site.
Zulily executives said the company has realized that last year’s extensive marketing campaigns highlighting well-known brands had attracted many one-time purchasers, not as loyal or as profitable as previous generations of buyers who’d come to zulily seeking to discover quirky items and became repeat buyers.
“The customers that we are acquired in 2014 are churning out at a faster pace than we would have expected,” said zulily chairman Mark Vadon.