Nordstrom announced today that it will acquire the flash sale site HauteLook, which offers discounts of 50 to 75 percent off mid-market brands for women, men, kids, home, and beauty, as well as travel and local services. Unlike more upscale sites which require membership, HauteLook is open to everyone.
The department store looks at the acquisition of the Los Angeles-based company, which launched its site in 2007, as a segue into the online private sale marketplace.
Blake Nordstrom, president, Nordstrom, Inc. said in a statement:“While our focus on providing a superior in-store shopping experience is our roots, continuing to find ways to use technology to serve customers the way they want to be served is critical."
Indeed, department stores have been amping up their online efforts, as analysts believe e-commerce has the biggest potential for growth. Earlier this year Macy's announced it would be staffing up at Macys.com and Bloomingdales.com. Last October, Neiman Marcus launched an e-commerce site for Last Call, its off-price outlet. The site also includes a flash sale component. And last fall, Saks.com implemented a five-star review system that allows consumers to rate its wares, from super pricey designer heels to basic lip balms.
Nordstrom plans on allowing HauteLook to continue to operate as an independent, wholly-owned subsidiary, under ithe current management of CEO Adam Bernhard, and maintains that the HauteLook brand and website will remain separate from Nordstrom.
We can't help but wonder, with the epic changes happening at Barneys New York, when new CEO Mark Lee will turn his attention to creating a more robust online shopping experience. Perhaps they should set their sights on Gilt Group or even exclusive newbie Moda Operandi.
