THE PLAN FOR GILT: The Hudson’s Bay Co., in its purchase of Gilt Groupe, will be taking on some Gilt employees, but not its top gun, chief executive officer Michelle Peluso. “We’re pleased that a number of Gilt’s management team members will be joining HBC once the transaction closes. Current Gilt ceo Michelle Peluso will be staying on with us through the transition process,” an HBC spokeswoman told WWD.
Last week, HBC said it would pay $250 million for Gilt Groupe, a low price for a once high-flying flash sale site. The deal is expected to close next month. Gilt’s flash sale format is now widely copied and the business has been slumping partly due to less compelling offerings. HBC is looking to pump up profitability through integrations with its Saks Off 5th division as well as with consolidations into the shared services arm of HBC. Gilt shops inside Saks Off 5th stores will start opening next month and customers will be able to buy and return Gilt products and become Gilt members there. A major impediment at Gilt has been the difficulty of making returns. HBC hopes the Gilt shops bring extra customers to Off 5th. HBC also likes Gilt’s personalization technology and sees it increasing conversions at its other sites.
Jonathan Greller, president of HBC outlets, will be overseeing Gilt.