Will Simon Property and Rue Gilt disrupt the online value shopping market?
Simon Property Group and Rue Gilt Groupe (RGG) announced yesterday the launch of a joint venture between the two companies to take outlet shopping to new heights online through ShopPremiumOutlets.com (SPO).
The beta test for SPO was announced by Simon in March. It included over 300,000 products from more than 2,000 brands. The site marketed itself to members of Simon’s VIP Shopping Club as offering savings up to 65 percent off full retail.
Simon plans to promote SPO through its properties across the U.S., and the two companies said they will be leverage combined databases of over 35 million shoppers to get the word out.
“Our strong capabilities in the physical outlet space, combined with RGG’s exceptional e-commerce success, will give shoppers enhanced access to the world’s best brands and the most compelling deals both online and in-store,” said David Simon, chairman, CEO and president of Simon, in a statement. “We believe online value shopping presents a tremendous business opportunity for Simon, given our credibility, trust and relationships with brands, retailers and shoppers.”
RGG chairman Michael Rubin said the venture with Simon puts them in an ideal situation to capture the “massive opportunity” that will come with disrupting the online value shopping market.
Simon’s SPO personnel will be integrated into RGG’s team as part of the deal. RGG will be responsible for the day-to-day management of SPO. Each platform will continue to operate under its own brand.
“Our expertise in e-commerce, data-science, curation and customer experience was the foundation for this partnership,” said Mark McWeeny, CEO of RGG, in a statement. “Together with Simon’s leadership, we are excited about the future opportunities ahead for this new, innovative retail platform.”
- Simon and E-commerce Entrepreneur Michael Rubin Launch New Partnership Dedicated to Digital Value Shopping – Simon Property Group/Michael Rubin/Rue Gilt Groupe
- Will brands shine in a new online platform for shopping outlets? – RetailWire
DISCUSSION QUESTIONS: How do you expect the combination of Simon and RGG to fare competing against off-pricers and other retailers competing in the value shopping market online? Where do you see the opportunities and challenges that will face Simon and RGG?