In a purchase that boosts the size and scope of its off-price retailing portfolio, Hudson’s Bay Co. has entered into a definitive agreement to acquire Gilt Groupe Holdings for $250 million in cash.
As well as expanding its lineup of off-price retailers, the purchase of Gilt, which offers discounted brand-oriented members-only online shopping, reflects the company’s advancement of its multichannel business strategy, Hudson’s Bay stated.
Gilt currently has more than nine million registered members, according to the company. Gilt’s ability to generate half its orders via mobile devices suggested that it has cultivated a loyal and devoted Millennial following as well.
The company also expects to benefit from the integration of Gilt with Saks Off Fifth locations, including the introduction of a new return program at Saks Off Fifth locations for Gilt merchandise following the closing of the acquisition in early February. HBC also expects to create Gilt concept shops at Saks Off Fifth stores, developing an all-channel model for Gilt.
Jerry Storch, Hudson’s Bay CEO, stated, “With this transaction, we are further accelerating both HBC’s all-channel offering and Gilt’s growth. We plan to continue to foster Gilt’s culture of innovation, which has helped create a strong brand with a loyal and devoted Millennial following. Adding Gilt to our rapidly growing digital business is very exciting, and we see tremendous potential to enhance our mobile and personalization strategies by leveraging Gilt’s advanced capabilities. We look forward to welcoming the Gilt team to HBC and to benefiting from the complementary nature of our businesses.”