- Danielle Wightman-Stone |
Flash sale brand Rue La La has confirmed that it is to acquire Gilt, from the Hudson’s Bay Company to create a “multi-brand growth platform”.
Both e-commerce destinations will continue to operate independently a statement confirmed, with both Rue La La and Gilt “retaining their unique identities and serving distinct customer segments,” while operating under the newly formed Rue Gilt Groupe.
The combination of both brands will see the portfolio reaching more than 20 million members, with a focus on a “young, affluent, fashion and brand-conscious consumer”.
The group will also leverage, what it is calling an “advanced technology platform” to combine capabilities in mobile and personalisation, with 60 percent of sales happening on mobile devices, the brands will utilise Rue La La's mobile-first approach.
In addition, Rue La La also added that it intends to hire more than 150 associates to run the Gilt business in New York, Boston and Kentucky, as well as other sites across the country.
"Having achieved record revenues and profits in 2017, Rue La La is poised to further strengthen its leadership position in fashion off-price e-commerce. Through the acquisition of Gilt and our evolution into a multi-brand platform, we are equipped for an acceleration in growth, innovation and profitability," said Mark McWeeny, chief executive of Rue La La in a press release. "Together with Gilt, Rue La La looks forward to increasing our presence and offering the attainable luxury and best-in-class experience that today's customers demand."
Michael Rubin, executive chairman at Rue La La added: “This transaction places the Rue Gilt Groupe in the premier tier of e-commerce growth companies. Our two distinct brands have large, highly engaged customer bases, cutting edge technology and mobile leadership. With enhanced scale and efficiency, we expect our growth trajectory to quickly enable us to surpass 1 billion dollars in total sales."
The transaction is expected to close in July 2018.