Simon and Rubin to be equal partners in Rue Gilt Groupe and the new online outlet marketplace, ShopPremiumOutlets.com(sm)
Simon contributing approximately $280M; combined company poised to surpass $1B in online sales
INDIANAPOLIS and BOSTON, Oct. 2, 2019 /PRNewswire/ -- Simon, a global leader in premier shopping, dining, entertainment and mixed-use destinations today announced an agreement with Rue Gilt Groupe (RGG), a company backed by entrepreneur Michael Rubin, to create a new multi-platform venture dedicated to digital value shopping.
The new venture will combine Simon's in-store retail leadership with RGG's e-commerce expertise and include RGG's Rue La La and Gilt platforms as well as Shop Premium Outlets℠ (SPO), Simon's new online outlet marketplace. Simon will contribute approximately $280 million to the new venture including the value of SPO℠, which has been successfully beta tested since March 2019.
Debuting today, SPO will deliver world-class brands at outlet pricing. For brands and retailers on the site, SPO will help drive additional online sales and support inventory optimization and customer acquisition. SPO currently encompasses over 2,000 designers and 300,000 products with many more merchants to join over time as new enhancements are introduced to the site.
Over the coming year, Simon will promote the new venture utilizing a portion of its well over $100 million plus annual marketing budget and access to two billion annual shopper visits. The partnership will also leverage the combined databases of Simon and RGG reaching over 35 million shoppers.
"Following our successful test of ShopPremiumOutlets.com with VIP shoppers, we're excited to expand our omni-channel capabilities in collaboration with a leading digital entrepreneur and the RGG platform. Our strong capabilities in the physical outlet space, combined with RGG's exceptional e-commerce success, will give shoppers enhanced access to the world's best brands and the most compelling deals both online and in-store," said David Simon, Chairman, CEO and President of Simon. "We believe online value shopping presents a tremendous business opportunity for Simon, given our credibility, trust and relationships with brands, retailers and shoppers."
"The online value shopping market is a massive opportunity ready for the next disruptor," said Michael Rubin, Chairman of RGG. "Partnering with industry leader Simon allows us to capitalize on this significant opportunity and accelerate RGG's growth to quickly surpass $1 billion in sales. This transaction brings together the leaders in online and physical commerce to deliver the excitement of outlet shopping online to consumers and innovative solutions to our brand partners."
RGG's two brands, Rue La La and Gilt, will complement SPO as part of a growing value shopping e-commerce portfolio. SPO's team will transition to RGG, who will be responsible for the day-to-day operations of SPO. Each platform will maintain its unique identity and continue to serve distinct customer segments – providing the excitement, value and unparalleled service that today's customers demand.
"Rue Gilt Groupe has a track record of success in growing and operating profitable businesses, including the Gilt acquisition a year ago," commented Mark McWeeny, Chief Executive Officer of RGG. "We are excited to partner with Simon on this innovative e-commerce property. Our expertise in e-commerce, data-science, curation and customer experience was the foundation for this partnership. Together with Simon's leadership, we are excited about the future opportunities ahead for this new, innovative retail platform."
The closing of the transaction is subject to customary conditions, including certain regulatory approvals.
About Simon
Simon is a global leader in the ownership of premier shopping, dining, entertainment and mixed-use destinations and an S&P 100 company (Simon Property Group, NYSE: SPG). Our properties across North America, Europe and Asia provide community gathering places for millions of people every day and generate billions in annual sales. For more information, visit simon.com.
About Michael Rubin and Rue Gilt Groupe
Noted internet entrepreneur Michael Rubin has built several multi-billion dollar e-commerce companies, including GSI Commerce which he sold to eBay for $2.4B in 2011. He is the Executive Chairman of Rue Gilt Groupe as well as Fanatics and ShopRunner. In addition to his entrepreneurial success, Michael is a criminal justice reform advocate and co-chair of the REFORM Alliance, an organization that's dedicated to fixing outdated parole and probation laws.
Rue Gilt Groupe is the premier off-price portfolio company, connecting more than 25 million members with coveted designers at an exceptional value. Two complementary brands, Rue La La and Gilt, utilize world-class merchandising, technology and marketing to strategically support our brand partners and inspire members daily. Our approach to retail brings excitement to online shopping and the best-in-class experience that today's customers demand. For more information, visit ruegiltgroupe.com
SOURCE Simon
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