Hudsons’ Bay Company (HBC), parent of retailers including Saks Fifth Avenue and Saks OFF 5TH, announced a definitive agreement to acquire Gilt Groupe, a leading and innovative online shopping destination, offering its members special access to fashion merchandise and experiences.
An early leader of so-called flash sales, Gilt has over 9 million members and generates approximately 50% of orders through its mobile platform, according to the companies’ press release.
Jerry Storch, chief executive officer of HBC, said in a release, “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 benefitting from the complementary nature of our businesses.”
In addition to leveraging Gilt’s mobile and personalization capabilities to accelerate the growth of HBC’s digital business across all of its existing retailers, the company said it expects to introduce a new return program at Saks OFF 5TH locations for Gilt merchandise following the closing of the acquisition. It also expects to create Gilt concept shops at Saks OFF 5th stores, developing a true all-channel model for Gilt.
“HBC and Saks OFF 5TH are the ideal home for Gilt and our members,” said Michelle Peluso, CEO of Gilt. “HBC understands our proposition and is committed to positioning our business for further success. Our members will find having a brick and mortar presence valuable and a positive addition to the Gilt experience. We are excited for our future and confident that we have the right team in place to continue to innovate the shopping experience and grow Gilt.”