The Financial Post is reporting that Hudson’s Bay Co. is looking at purchasing online “flash-sale” retailer Gilt.com for an estimated $250 Million dollars US. Industry insiders state that HBC is interested in increasing its digital presence and the purchasing of Gilt.com could effectively do this, even though Gitl’s evaluation has tumbled from $1 Billion US dollars for years ago.
The Financial Post goes on to allude that HBC has been investing heavily to expand itss digital offering and it’s possible that Hudson’s Bay is looking at buying Gilt to partner it with Saks Off 5th and potentially open Gilt shops inside Saks Off 5th Stores. The article also highlights that this move is likely as it’s “unlikely HBC would want to run Gilt as a separate business.”
If you have shopped on Gilt lately, you may have noticed that their online offering is becoming increasingly convoluted and has lost its luster. This is part of the reason their evaluation has dropped from over a billion dollars to its current evaluation of $250 million.
Hudson’s Bay Co. and Saks are very strong brands and could be Gilts answer to turning around their business.
stay tuned to StyleDemocracy for updates, we will be sure to keep you informed as this story develops.
Source: Financial Post