Online retailer Rue La La has entered into an agreement with the Hudson’s Bay Co. to acquire Gilt, its member-based digital shopping business.
The combined company will unite two complementary lifestyle brands with each continuing to operate independently, retaining their brand identities and serving distinct customer segments, noted Rue La La.
Rue La La and Gilt will operate under the newly formed Rue Gilt Groupe. With 60% of sales happening on mobile devices, the new company should be able to capitalize on the Rue La La mobile-first approach, the company noted, providing a seamless customer experience. The Rue Gilt Groupe portfolio will serve over 20 million members, the company said, particularly young, affluent, fashion and brand-conscious shoppers, benefiting the brands and the consumers who have signed up as members of the two platforms.
“Having achieved record revenues and profits in 2017, Rue La La is poised to further strengthen its leadership position in fashion off-price e-commerce. Through the acquisition of Gilt and our evolution into a multi-brand platform, we are equipped for an acceleration in growth, innovation and profitability,” said Mark McWeeny, Rue La La CEO.
Michael Rubin, executive chairman at Rue La La, added, “This transaction places the Rue Gilt Groupe in the premier tier of e-commerce growth companies. Our two distinct brands have large, highly engaged customer bases, cutting edge technology and mobile leadership. With enhanced scale and efficiency, we expect our growth trajectory to quickly enable us to surpass $1 billion in total sales.”
The transaction is expected to close in July 2018.