"While our focus on providing a superior in-store shopping experience is our roots, continuing to find ways to use technology to serve customers the way they want to be served is critical. This partnership gives Nordstrom and HauteLook shared growth opportunities as online shopping evolves," said Blake Nordstrom, president, Nordstrom.
Mr. Nordstrom said Hautelook would continue to operate under CEO Adam Bernhard and the company's management team. A report on the Women's Wear Daily (WWD) website pegged Hautelook's annual revenues at $100 million.
"Our established membership base of well over four million shoppers is closely aligned with the Nordstrom customer," said Mr. Bernhard. "We feel fortunate to partner with a company that shares our commitment to providing customers with great brands and an exciting shopping experience."
Hautelook's model involves partnering with brands for limited time sales. Designers choose the merchandise and determine pricing. The retailer, which rarely pays for merchandise up front, handles order fulfillment from warehouses on the coasts.
Ken Stumphauzer, a retail analyst with Sterne Agee, told The Seattle Times that the growth of flash sale sites is "mind-boggling."
"It's in Nordstrom's interest to preemptively join that crowd," he added.
The WWD article questioned whether Hautelook might face future supply issues as the economy improves and brands are not faced with excess inventory. Gilt Group, according to the report, has begun placing orders for manufacturers to make product after facing supply issues.