BANGALORE (Reuters) — French online startup Vente-Privee is to shutter its U.S. venture by the end of the year.
Vente-Privee sells luxury fashion, wine and music at steep discounts in “flash sales” that last three to five days.
“Over the past three years, Vente-Privee made many noteworthy achievements in the U.S. market, including over $50 million, or 39.4 million euros at current exchange in sales this year,” Vente-Privee said in a statement. “The company does however acknowledge that an exponential amount of time, resources and financial investment would be required to achieve significant growth in the U.S. with the current model.”
The company is considering a new model stateside, it added.
Vente-Privee began operating in the United States in 2011 in a joint venture with American Express Co., the world’s largest credit card issuer, to access an affluent client base of cardholders, giving it instant credibility and brand recognition despite not being a household name outside Europe.
“Both companies decided that given the road to profitability for Vente-Privee USA was going to be longer than expected, it was time to focus on other priorities,” American Express’ spokeswoman Leah Gerstner said in an email.
Vente-Privee USA will continue to operate and fulfill its sales events and customer orders through the end of the year, Gerstner said.
Launched in 2001, Vente-Privee has grown fast and is now one of Europe’s biggest homegrown online retailers, with a presence in France, Germany, Spain, Italy, the UK, Austria, Belgium and the Netherlands.