By Hilary Milnes.
With the flash-sale model all but obsolete, the future of Gilt is riding on the site’s ability to appeal to its (self-reported) 9.7 million active members on an individual level.
The company rolled out a new site on Tuesday that shifts its emphasis away from flash sales, putting the focus instead on new product drops, personalized recommendations and editorial content. It’s also introducing a mix of both full price and discounted goods. While its flash sales aren’t totally dead, their importance has been diminished; Gilt has cut its number of daily flash sales from 40 per category to six, and inventory will no longer disappear after 36 hours.
Gilt’s relaunch has been underway since it was acquired by Hudson’s Bay Company in January 2016 for $237 million, positioning it alongside fellow off-price company Saks Off 5th. For Hudson’s Bay, the move was made to purchase a younger customer set and strengthen its off-price business, which reported weaker sales in 2016, according to the company. (HBC doesn’t break out exact sales figures by brand.)
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