Okay, I’m a little late on this news, but still it’s noteworthy nonetheless. According to the Wall Street Journal, Nordstrom, my beloved Seattle-based retailer, buys an awesome “flash sale” entity in the form of HauteLook for about $270 million in stock. That’s pretty impressive given the growing flash sales market around nowadays. Being a member of both Gilt Groupe AND HauteLook, I can definitely see why Nordstrom wants to take a piece of that action and turn it into dollar signs down the road.
What does this mean for the fashion industry? I’m sure there are lots of analysts that will share their perceived future of fashion and retail industries. But from my own personal opinion, I think this is a great investment on Nordstrom’s part, and definitely a way to get a foothold on their business by expanding their market and customer reach.
The downside that I see is in imagining what HauteLook would have been if it were to hold off on Nordstrom’s sale and decides to keep operating as an independent? I’m thinking in the lines of Twitter here… As you can see, Twitter’s refusal to accept Google and Facebook’s offer changed (if not, modified) the business of the social media industry. I can imagine that HauteLook, Gilt Groupe and its competitors can change the business infrastructure of the fashion and retail industries if they stayed in business as an independent.
Again, my 2 cents 🙂