A Flash (Sale) in the Pan?

When reports started circulating that Gilt Groupe  raised $50 million; effectively once again delaying its IPO, we thought we’d take a look at Gilt and its flash-sale counterparts. What we found was that among Gilt and fashion flash-sale pioneer RueLaLa, sales are flattening.

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Even more telling is the rate of bringing on new buyers is slowing. Only Nordstrom-owned HauteLook seems to be bucking the trend.

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Given this pattern, it’s not surprising that the bulk of sales are coming from legacy members, versus first-time buyers. For Gilt Groupe, between 85 and 89 percent of monthly sales are from repeat purchasers, and as the chart below indicates, legacy buyers are also spending much more per order.

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The silver lining for Gilt Groupe is that it has managed to get shoppers to spend more on its site than its competitors, with the average user spending $553.00 in 2014, versus $326.00 for HauteLook and $542 on RueLaLa.

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About this Data

With a panel of more than 2 million online shoppers, Slice Intelligence offers the most detailed and precise digital commerce data available, reported daily.

Slice Intelligence is the only service to measure digital commerce directly from the consumer, across all retailers, at the item level, over time. This retailer-independent methodology accurately measures commerce as it happens. By extracting detailed information from hundreds of millions of aggregated and anonymized e-receipts, Slice can map the entire Purchase Graph, connecting each and every consumer to all their purchases.

Slice gets its data from e-receipts – not a browser, app or software installed by the end-user – so its measurement reflects comprehensive shopping behavior across multiple devices, over time which are key in an increasingly omnichannel retail world.

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