Hudson’s Bay Company, the owner of Saks Fifth Avenue and other department store chains, today announced that it has entered into an agreement to acquire Gilt Groupe Holdings for $250 million in cash.
“With this transaction, we will further accelerate both HBC’s all-channel and Gilt’s growth,” said Jerry Storch, chief executive officer of HBC, who spearheaded the deal.
In a press release, Hudson’s Bay said Gilt customers will be able to make returns to Saks Off Fifth discount stores, which will eventually feature Gilt “concept” stores.
“Opportunities for revenue growth at Saks Off 5th include increased customer traffic to stores from Gilt customers making returns and sales to customers visiting Gilt concept shops inside Saks Off 5th locations. Opportunities for expense savings and operational efficiencies from combining the businesses include reduced shipping costs, increased purchasing power, and shared inventories across Gilt and Saks Off 5th,” the company stated.
New York-based Gilt, once valued at about $1 billion, pioneered the “flash sale” e-commerce model in the United States.