US-based online shopping destination Rue La La has signed an agreement to acquire member-based digital shopping business, Gilt, from Hudson’s Bay (HBC).
The deal will integrate two complementary lifestyle brands into a multi-brand growth platform, Rue Gilt Groupe.
The newly formed Rue Gilt Groupe portfolio will serve more than 20 million members with a focus on fashion and brand-conscious consumers.
Following the transaction, which is scheduled to close in July, both brands will continue to operate independently by serving different consumer segments.
Rue La La CEO Mark McWeeny said: “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.
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“Together with Gilt, Rue La La looks forward to increasing our presence and offering the attainable luxury and best-in-class experience that today’s customers demand.”
Both companies will leverage an advanced technology platform, which integrates capabilities in mobile and personalisation.
They will also focus on mobile shoppers using Rue La La’s mobile-first approach, as 60% of online sales are happening on mobile devices.
As part of the deal, Rue La La also plans to hire more than 150 employees to operate the Gilt business in New York, Boston, Kentucky, and other sites across the country.
Rue La La executive chairman Michael Rubin said: “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 $1bn in total sales.”