The owner of Saks Fifth Avenue, Hudson's Bay, is buying online luxury flash sale retailer Gilt Group for $250 million. Bobbi Rebell reports.
Sold! The owner of Saks Fifth Avenue, Canadian department store operator Hudson's Bay has agreed to buy online luxury retailer Gilt Groupe Holdings. The price tag: $250 million. It may be a relief for Gilt. The flash-sale site has been facing stiff competition from other limited-time sale rivals. It is a merger of bricks and clicks. Hudson's Bay says it plans to open Gilt shops inside its bricks and mortar Saks Off 5th stores. Gilt customers will be able to return merchandise to those stores. Hudson's Bay also touted its ability to reach customers on multiple channels. Jerry Storch, the Chief Executive Officer of HBC saying in a statement: "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. " The deal is not the first of it's kind. Department store chain Nordstrom owns flash-sales website Hautelook, bought back in 2011. Hudson's Bay expects the deal to add about $500 million to its 2016 total sales.