Hemster

Hemster enables fashion retailers to offer affordable in-store tailoring services.

Through the use of the company’s patent-pending RulerSticker, retail associates can fit shoppers quickly and accurately, even with no tailoring experience. This process saves shoppers the frustration of buying ill-fitting clothes, and saves retailers millions of dollars on returned items.

Since launching in 2017, Hemster has debuted its services in malls in three cities, and has notable customers including Zara, Michael Kors, and Bonobos. Now the company is aiming to expand its business nationwide.

Each year, fashion retailers spend more than $35 billion creating and managing multiple sizes of clothing. Yet only 11% of the U.S. population fit into sizes “small,” “medium,” and “large.”

For many, this means their clothes don’t fit perfectly. As a result, retailers suffer from low conversion rates and high costs of returns from imperfect fits, while shoppers have to endure a frustrating, multi-step process to achieve their ideal fit.

Premium retailers such as Nordstrom, Bloomingdale’s, Men’s Wearhouse, and Armani spend more than $500 million every year offering a full suite of complementary alteration services. But individual brands such as EXPRESS, J. Crew, and Gap have a difficult time offering these services.

Hemster provides a solution for these types of retailers, enabling them to offer streamlined, in-store tailoring services.

Here’s how it works:

Shoppers get fitted for clothes by a store associate right in the dressing room using Hemster’s proprietary RulerSticker.

Once fitted, customers can take the clothes to a Hemster Station located inside a participating mall, or arrange for a Hemster tailor to make an in-home visit. In either case, the tailor receives the clothes, makes the necessary alterations, and returns the clothes to the shopper in less than 48 hours.

Hemster charges retailers and shoppers a tiered pricing structure for each item of clothing, and uses a portion of that revenue to pay local tailors. For in-home services, the company charges an additional $15 to $25 fitting fee to protect its product margins. The average order value is $60.

Hemster launched its service in August 2017 through a pilot program with a handful of San Francisco-area malls owned by Westfield Group. As a result of the pilot, retailers increased their monthly sales by an average of 15%.

“Our shoppers and retail partners use Hemster with delight and we see a boost in traffic and visitor engagement,” said Jeff Adams, Senior Vice President of Guest Services of Westfield.

Following the pilot program, Hemster raised $150,000 from angel investors and XRC Labs. XRC Labs is an accelerator program focusing on early-stage companies in the retail and consumer goods industries. Hemster completed this accelerator program in early 2018.

In May 2018, the company expanded its services to Los Angeles and, two months later, launched in five additional malls. Most recently, Hemster launched in 10 additional malls and expanded its services to New York.

With funds raised, the company will hire regional teams for New York, Chicago, Texas, and Florida as it looks to expand nationwide in February 2019. If it achieves this goal, Hemster will cover 7,000 retail stores in 400 malls, serving 1 million shoppers every year.

While the company is initially targeting “Grade A” malls, it will soon expand to high-end residential complexes and luxury apartments. In fact, Hemster is already partnering with top residential property groups including Greystar, Crescent Heights, and Maximus.

Company Founder Allison Lee formerly served as Director of Monetization at an Internet of Things start-up called Peel. While there, she grew the company’s revenues from $20,000 to $10 million in less than 18 months.

Assisting Lee are a pair of experienced advisors. Paul Raffin has more than 40 years of experience in the consumer goods industry, including his role as CEO or Division President of fashion companies such as EXPRESS, J. Crew, and DZ Trading. And Bebe Chueh formerly founded AttorneyFee, a legal services company that was acquired by LegalZoom.

Team Background

Angela Hung - Head of Retail

Angela brings extensive experience in the fashion industry to Hemster.

She formerly served as Merchandising Manager for Elizabeth Charles, a women’s fashion retailer in San Francisco. In addition, she worked as an assistant buyer for Sears.

For more than three years, she served as Marketing and Fashion Manager for Lauren Gurvich Consulting, a consulting company focused on interior design.

Angela earned a Bachelor’s degree in English from the University of California, Los Angeles.

Allison Lee - Founder

Prior to starting Hemster, Allison served as Director of Monetization for Peel, an Internet of Things start-up. She grew the company’s revenue from $20,000 to $10 million in less than 18 months.

She earned a Bachelor’s degree in Psychology and Media Studies from the University of California, Berkeley.

Co-Investors

XRC Labs

An accelerator program focused on start-ups in the retail and consumer goods industries.