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{{DEFAULTSORT:Gilt Groupe}}
{{DEFAULTSORT:Gilt Groupe}}
[[Category:Online retailers of the United States]]
[[Category:Hudson's Bay Company]]
[[Category:Hudson's Bay Company]]
[[Category:Companies based in New York City]]
[[Category:Companies based in New York City]]
[[Category:Online clothing retailers]]
[[Category:Online clothing retailers of the United States]]
[[Category:Internet properties established in 2007]]
[[Category:Internet properties established in 2007]]
[[Category:2007 establishments in New York City]]
[[Category:2007 establishments in New York City]]

Revision as of 16:17, 12 September 2019

Gilt Groupe
Company typeSubsidiary
IndustryE-commerce
Founded2007
FoundersKevin P. Ryan
Headquarters
New York, N.Y.
,
USA
Key people
Jonathan Greller (President)[1]
OwnerRue La La
Number of employees
More than 1000 [2]
Websitegilt.com

Gilt is an online shopping and lifestyle website based in the United States, launched in 2007[3] At one time valued at over $1 billion on paper, the company was eventually sold to Hudson's Bay Company for approximately $250 million, far lower than the total obtained from its investors. Prior to the Hudson’s Bay acquisition, sales were exceeding growth projections but the firm had not been profitable yet.[4][5][6][7] On June 4, 2018, HBC announced their intent to sell Gilt to Rue La La.[8]

History

Gilt Groupe is based in New York City with warehouses in Brooklyn, New York, Las Vegas, Nevada, and Louisville, Kentucky.

Founder Kevin P. Ryan modeled Gilt after Vente-Privee, an online fashion retailer in France. The original business plan consisted of "flash sales," selling a limited number of luxury designer items at steep discounts for brief periods.[4]

The company launched women's clothing and accessories in November 2007 and menswear in April 2008. It added Gilt Groupe Japan , Gilt Fuse, and travel site Jetsetter in 2009.[9] It later added, Gilt City and Gilt Home in 2010 and Gilt Taste in 2011.[10] In 2012, the company entered a partnership with Jason Binn's upmarket lifestyle magazine, DuJour.[11]

In 2009, growth equity firm General Atlantic led a series C funding round, joined by previous investor Matrix Partners..[12][13] By February 2014, Gilt Groupe was preparing for an IPO.[14]

According to Business Insider, during its "hyper-growth years, the company overextended itself and lost focus", as the expanded business segments such as "Full-price retail, travel, and food were sucking resources from Gilt's core categories — discounted women's fashion", and Gilt was forced to sell these non-core businesses at a loss. Flash sales companies were also seeing slower growth, thanks in part to e-mail fatigue (the key means for flash sales to be promoted) with e-mail providers increasingly classifying these messages as spam). The IPO kept getting delayed and ending up never happened, while the firm never reached profitability. By 2015, Gilt was raising money "at a lower valuation than the $1 billion at which it reportedly raised $138 million in 2011". Such a cash infusion is known as "down round" which hurts employee morale and devalues the founders' stakes.[4][5][6][7]

On January 7, 2016, Gilt Groupe announced its acquisition by Hudson’s Bay Company, owner of luxury department store chains Hudson’s Bay, Lord & Taylor and Saks Fifth Avenue, for $250 million, less than the amount raised from investors in all of the company's prior funding rounds.[15]

In June 2018 it was announced the HBC would be selling Gilt to Rue La La.[16] The sale was reported to be for less than half of what HBC paid for Gilt, two years prior, with a price of $100 million.[17]

Business

Gilt Groupe visitors must be members in order to view sales. Sales last 36–48 hours and feature merchandise from a single brand or small groups of brands. The firm purchases vendor inventory at an extreme discount, adding a margin in order to make a profit. On August 22, 2011, Gilt Groupe added a Facebook shopping section.[18] Android and iPhone apps allow mobile shopping, and access is also available for other smartphone and tablet devices.

Book

Penguin Group printed a history of Gilt Groupe in 2012 written by two of its founders, Alexis Maybank and Alexandra Wilkis Wilson. By Invitation Only: How We Built Gilt and Changed the Way Millions Shop was published before Gilt was bought out by Hudson's Bay;[19] At that time the firm was valued at more than $1 billion,[20] over four times greater than its eventual selling price.

References

  1. ^ Team | Gilt Groupe | About. Gilt.com.
  2. ^ Gilt Groupe - Company Overview
  3. ^ "Author Series with Alexis Maybank of Gilt Groupe". New York Technology Council. August 7, 2012.
  4. ^ a b c "Four years ago Gilt Groupe was the hottest startup in New York — Here's what happened". Business Insider. Retrieved 2018-05-23.
  5. ^ a b O'Brien, Sara Ashley. "Has Gilt Groupe hit the clearance rack?". CNNMoney. Retrieved 2018-05-23.
  6. ^ a b "Gilt Groupe sale leaves winners, losers and a cautionary tale". www.bizjournals.com. Retrieved 2018-05-23.
  7. ^ a b "Gilt Groupe's Very Cloudy Future". Recode. Retrieved 2018-05-23.
  8. ^ "Hudson's Bay to close up to 10 Lord & Taylor stores, including Fifth Avenue in New York". Retrieved 5 June 2018.
  9. ^ Shambora, Jessica (September 30, 2009). "Gilt Groupe's Jetsetter takes off". CNN.
  10. ^ Fabricant, Florence (2011-05-17). "Gilt Taste Arrives, With Ruth Reichl at the Helm". The New York Times.
  11. ^ "Catching Up With Jason Binn" wwd.com
  12. ^ McMahan, Ty. "Venture Capitalists Prove They Have A Fashion Sense". The Wall Street Journal. Retrieved 16 December 2015.
  13. ^ "Gilt Groupe, Inc. Announces New Growth Capital Investment". PRNewswire. Retrieved 16 December 2015.
  14. ^ Strugatz, Rachel (13 February 2014). "Gilt IPO Puts Eyes on Flash Model". WWD. Retrieved 13 February 2014.
  15. ^ "Gilt Groupe to Announce Sale to Saks Fifth Avenue Owner as Soon as Thursday Morning". Re/code. Archived from the original on 2016-01-07. Retrieved 2016-01-07. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  16. ^ La, Rue La. "Rue La La to Acquire Gilt". www.prnewswire.com. Retrieved 2019-06-18.
  17. ^ "HBC To Shutter Home Outfitters Chain, Up To 20 Saks OFF 5TH Stores - Retail TouchPoints". www.retailtouchpoints.com. Retrieved 2019-06-18.
  18. ^ August 22, 2011 Gilt goes after Facebook shoppers internetretailer.com
  19. ^ Essential Business Reads Business Week 2012-04-13
  20. ^ Alexis Maybank and Alexandra Wilkis Wilson, By Invitation Only: How We Built Gilt and Changed the Way Millions Shop Penguin Group, 2012
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