Hudson’s Bay Company has completed its previously announced acquisition of Gilt Groupe Holdings, Inc. 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. HBC also expects to create Gilt concept shops at Saks Off Fifth stores, developing an all-channel model for Gilt.