GSI Grabs RueLaLa/SmartBargains for $350 Million
Oct 28th, 2009 by admin
Exciting e-commerce fusion in the US: For $350 million, GSI Commerce has taken over Retail Convergence, the operator of private shopping club Ruelala (approx. $100 million revenues) and the bargain shop Smartbargains (approx. $60 million revenues). GSI Commerce is a full service e-commerce provider serving large (fashion) brands.
Picture of GSI Grabs RueLaLa/SmartBargains for $350 Million [source:excitingcommerce.com]
Besides the detailed press release, Internetretailer has a written up a good background article.
We at Exciting Commerce commented recently on the changes occurring in the fashion industry, which is again underlined by this particular deal:
According to our estimates, parallel to services such as Yoox, DePauli/Herrenausstatter or Design3000 (and their exclusive branded shops), in particular logistic service providers (such as Dohmen Solutions and Hellmann) will be cutting a larger piece of the fashion pie and in effect increasingly become competition for the established (mail-order) businesses.
GCI Commerce, which is making its way to Europe, is expanding its service offering for branded manufacturers and can now start offering targeted clearance sales.
P.S. Naturally, we are at Optaros very proud that we develop Ruelala as one of the first American private shopping clubs for Retail Convergence/SmartBargains – and are able to kit them out with a full set of sales supporting elements.
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Originally posted in German by Jochen Krisch, adapted for excitingcommerce.com by Jason Soo.[source:excitingcommerce.com]
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