TORONTO – Hudson’s Bay Co. is preparing to pay US$250 million cash to buy Gilt Groupe Holdings, Inc., a membership-based online retailer that caters to shoppers in the millennial generation.
The Toronto-based retailer says Gilt has more than nine million members and the acquisition is expected to add about US$500 million to HBC’s overall revenue this year.
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About half of Gilt’s revenue is generated by mobile shoppers.
The Gilt acquisition will complement HBC’s growing digital business, which is integrated with its store-based operations under banners such as Hudson’s Bay, Lord & Taylor and Saks Fifth Avenue.
Headquartered on New York City’s prestigious Park Avenue, Gilt was founded by Kevin Ryan in 2007 as an invitation-only site for women’s clothing and accessories. It has since expanded into products for homes, babies and children and men.
The companies see a close fit between Gilt and Saks OFF 5th, an HBC banner that’s opening stores in Canada this year.
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