Rue Gilt Groupe, which owns Rue La La and Gilt, has attracted an investment from Simon Property Group to take outlet shopping online.Online discount retailer Rue Gilt Groupe has attracted an investment from the nation’s largest shopping mall operator, Simon Property Group, to launch a new website for outlet shopping.
Rue Gilt Groupe will operate the site and earn a commission on every sale that is made on the platform. Simon has pledged to use a portion of its $100 million-plus annual marketing budget to promote the new site. Simon and Rue Gilt Groupe plan to leverage their customer databases, which together include more than 35 million people, to market the new offering. They say the platform will help brands drive additional online sales, get rid of excess inventory and serve as an additional channel for acquiring new customers.
As foot traffic at malls has declined, Simon Property Group, a retail real estate giant, has been looking for ways to diversify its business and take part in the e-commerce boom. The CEO says he does not expect the website to cannibalize sales at the nearly 100 outlets that he operates around the world.
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