We reported yesterday that Sainsbury's had offered £1 billion to buy the parent company of Argos. A potential acquisition that is expected to boost the supermarket's online offering.
The venerable retail giant, and department-store operator, Hudson Bay Company (HBC) has now bought the flash sale site Gilt.com for $250 million. The Gilt Groupe will, in Hudson Bay's own words, accelerate all-channel growth within the retail conglomerate.
Gilt Concept Shops Planned
This is of course also a way for Gilt to extend their reach offline and they are confident in that HBC will be a good home for Gilt.com.
- HBC understands our proposition and is committed to positioning our business for further success. Our members will find having a brick and mortar presence valuable and a positive addition to the Gilt experience. We are excited for our future and confident that we have the right team in place to continue to innovate the shopping experience and grow Gilt, said Michelle Peluso, Chief Executive Officer of Gilt.
Gilt will also use the fashion store Saks Fifth Avenue for a new return program of goods bought online. HBC also expects to create Gilt concept shops at Saks stores. These introductions will develop a true all-channel model for Gilt, said HBC.
The transaction, which is expected to close the 1st February, will contribute approximately $500 million to HBC's 2016 sales. Gilt's mobile and personalization capabilities is also expected to help HBC's digital business across all of its channels. 50 percent of Gilt's orders, from their 9 million members, is already from mobile devices.