Why are companies battling to snatch up bankrupt retailers? They want your data.

  • 📰 NBCNews
  • ⏱ Reading Time:
  • 40 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 19%
  • Publisher: 86%

Business News News

Business Business Latest News,Business Business Headlines

“I would say that [customer data] is the preeminent valuation factor that we look at because we’re buying companies that are failing in their old methodology,” Tai Lopez, president of Retail Ecommerce Ventures, tells NBCNews.

“Lists are not hard to get, but lists that are connected to a brand that I own, I can’t go buy that as easily,” he said. “You gain tremendous value by having conversations with customers who already have a relationship with that brand.”

“A buyer typically wants that customer list because it's a way for a new buyer to take on that brand and give it new life, including to market similar products to the same customer base,” he said. Most retailers have a privacy policy that includes clauses related to what will happen to customer data in a potential sale of the business.

Most retailers’ privacy policy includes some clauses related to what will happen to customer data in a potential sale of its business, said Catherine Meyer, senior counsel with Pillsbury Winthrop Shaw Pittman. For instance, Lord & Taylor, which filed for bankruptcy this month,a clause in its privacy policy that tells customers their information is considered a company asset and may be sold or transferred to third parties.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 10. in BUSİNESS

Business Business Latest News, Business Business Headlines