Source: gilt.com
Hudson's Bay Company (HBC), which owns its namesake chain along with Saks and Lord & Taylor, has reached a definitive agreement to acquire Gilt Groupe, one of the pioneers in the flash sales site business.
"We plan to continue to foster Gilt's culture of innovation, which has helped create a strong brand with a loyal and devoted millennial following," said Jerry Storch, HBC's CEO. "Adding Gilt to our rapidly growing digital business is very exciting and we see tremendous potential to enhance our mobile and personalization strategies by leveraging Gilt's advanced capabilities."
According to a press release announcing the deal, Hudson's Bay expects to benefit from the integration of Gilt with Saks Off 5th locations. Hudson's Bay plans to create Gilt concept shops within Off 5th stores, giving it a presence in bricks as well as clicks. Customers who purchase items from Gilt will also be able to make returns at Off 5th locations.
Gilt, which has over nine million members, boasts of a robust mobile operation with over 50 percent of its orders generated on its mobile platform. CEO Michelle Peluso sees her company as complementary to the Hudson's Bay and Saks Off 5th businesses.
"HBC understands our proposition and is committed to positioning our business for further success," said Ms. Peluso in a statement. "Our members will find having a brick and mortar presence valuable and a positive addition to the Gilt experience."
Hudson's Bay is not the first department store chain to acquire its way into the flash sales business. Nordstrom bought Gilt rival Hautelook in 2011.