Hudson’s Bay Co. Will Acquire Gilt Groupe
Late last year, rumours speculating the acquisition of Gilt Groupe started swirling. The purchase, has since been confirmed and Hudson’s Bay Co. has agreed to purchase the online luxury flash sale retailer for $250 million in cash. The deal is expected to close on February 1, 2015.
What does that mean for consumers? The acquisition will actually benefit shoppers a lot, especially the ones that love discount designer! As part of their off-price strategy, HBC plans to merge Gilt and Saks Off Fifth, which was acquired in 2013 alongside Saks 5th Avenue. According to WWD, Gilt concept shops will open within Saks Off 5th stores (up to 8 Off 5th locations are planned to open in 2016) and shoppers will even be able to do returns and exchanges for products purchased online at Gilt.com in Off 5th stores. By combining the two discount luxury retailers, HBC will be able to save on expenses which means reduced shipping costs for shoppers and a greater inventory selection between the two retail properties.