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Why Purchase is Great for HBC

by Robert Hetu  |  January 8, 2016  |  Submit a Comment, one of the big names in flash sales, has a great brand and lots of members, although its not clear how many are actual buyers. At $250M this is a great deal for the owner of Saks, Saks off 5th, Lord & Taylor and Hudson’s Bay and here’s why;

1. The major issue hampering recent performance of flash sales sites has been a lack of inventory. The mix of luxury brands available from Saks off 5th solves this issue for

2. This qualifies as what Gartner calls a “techquisition”. Rather than having to start from scratch this acquisition jump starts HBC into the flash sales market.

3. Extending eCommerce reach through creates yet another sales channel that helps provide HBC with digital bench strength.

4. gives HBC a major new way to reach millennial shoppers with reasonable price entry to the luxury market.

As long as HBC executes on a solid digital strategy that maximizes the asset of the investment should yield terrific returns.

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Category: ecommerce  technology-and-emerging-trends  

Tags: assortment  competition  consumers  customer-analytics  customer-centricity  digital  ecommerce  prodcuts  retail  stores  trends  

Robert Hetu
VP, Analyst Retail
7 years at Gartner
29 years IT Industry

Bob Hetu is a Research Director with the Gartner Retail Industry Services team. His responsibilities involve tracking the technology markets and trends impacting the broad-based retail merchandising and planning areas. Mr. Hetu is an expert in the areas of brand, vendor and assortment management, merchandise planning, allocation, and replenishment. Read Full Bio

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