Rue La La is the latest in a line of companies to purchase an e-commerce darling—in this case, Gilt. Could joining forces keep the two brands alive in the current retail environment?
Gilt performed poorly in Gartner L2’s Digital IQ Index: Department Stores. It failed to make incremental site investments or offer sophisticated fulfillment capabilities, leading to its gradual unraveling. However, pooling resources with another flash sale site such as Rue La La could help reduce costs in the long run and save both brands from a revenue war.
With department stores promoting discounts to near-perpetuity and tacking on off-price outlets to their shops, competition is more fierce than ever to stay afloat amidst the Amazon invasion. E-commerce brands have been bought out by major players before, but with e-tailers such as Rue La La and Gilt teaming up, we may see department stores begin to clap back with gangs of their own.