Gilt: More Full Price Sales Will Likely Be A Part Of Our Future

A spokesperson from Gilt got back to me regarding the Vogue partnership. Here’s what she had to say:

• There will definitely be Vogue-sponsored “Shop The Issue” sales in February and March. Vogue hasn’t committed to anything beyond that.
• As Gilt grows, full price sales are something it wants to do, but no definite plans have been made.

Obviously, the big question is: Why bother? Gilt’s already grabbing market share from pretty much every type of retailer, including off-price brick-and-mortar (TJ Maxx), department stores, boutiques and outlet stores.

Well, I think what Gilt may be dealing with now is somewhat of a backlash from designers, as my Twitter follower @EmekaPatrick suggested yesterday. Many boutiques are frustrated with certain designers because they’re producing in-season merchandise for Gilt and allowing Gilt to sell it at a hefty discount while it’s still full price at traditional stores.

Consumers are picking up on this. One boutique owner told me that clients have actually said to him, “I saw this on Gilt the other day for 70% off, why is it full price here?” I’m sure designers are hearing from disgruntled store buyers and have relayed these concerns back to Gilt. I’m also sure it’s not a huge deal for the company as of yet, but as the economy improves and traditional store buyers have more money to spend, Gilt’s going to have to come up with new ways to convince designers to cut them a deal.

That’s not to say Gilt’s original form of revenue will go away. No matter what’s up with the economy, people love sales, even if the product is a couple of seasons old. But in-season merchandise is going to be more difficult to discount down the road. As a frequent Gilt customer, I look forward to observing how the executive team deals with this and other challenges.

Gilt Teams Up With Vogue For “Shop The Issue” Sales, Starting Tonight At 9pm

What may well be its most brilliant marketing move yet, Gilt Groupe has teamed up with American Vogue to hold special “Shop The Issue” sales. The first one happens tonight at 9pm and features See by Chloe, whose safari shirt was profiled by fashion writer Mark Holgate in the January issue of the magazine.

There is very little information available from Gilt–meaning no press release, no blog post–so I’m unsure as to whether or not other designers from the issue will also be featured or if the clothing will be discounted. (I have a feeling that if it is, it won’t be by much. Don’t expect 70% off in-season merchandise here.)

I’ve contacted Gilt and hopefully they can answer my questions. I’ll get back to you soonest.

Update:

The sale is filled with non-discounted items from several labels, including Dooney & Bourke, Giles & Brother and the aforementioned See By Chloe.

The model is doing a lot of Vogue spread-inspired poses.

Gilt is using Vogue’s new feature Steal of the Month as the centerpiece for each sale. That’s a good idea, as long as the designers involved are okay with selling his/her new goods on Gilt.

This biggest news here? Gilt has moved into full-price retail. Yes, it’s still a flash sale, but without the discount, what’s the point?  Gilt execs say that traditional retailers don’t understand the flash sale model. Will they be able to duplicate its success while charging full price?