The largest mall operator in the country, Simon Property Group, has partnered with an online retailer to launch an eCommerce website that offers discounted products from popular brands and designers.
Simon invested $280 million in Rue Gilt Groupe, a subsidiary of Kynetic and the owner of discount site Rue La La, for the creation of its website called ShopPremiumOutlets.com.
The site, which has been in beta with select customers since March, will offer roughly 300,000 products from 2,000 brands and designers, including Saks Off 5th, Nautica, Cole Haan, Aeropostale, Gucci, and Michael Kors, among others.
RGG will operate the platform and earn a commission on every sale made on it.
“Our strong capabilities in the physical outlet space, combined with RGG’s exceptional eCommerce success, will give shoppers enhanced access to the world’s best brands and the most compelling deals both online and in-store. We believe online value shopping presents a tremendous business opportunity for Simon, given our credibility, trust and relationships with brands, retailers and shoppers.” – David Simon, CEO, Simon Property Group
RGG, on its part, considers the partnership an opportunity to accelerate its growth and surpass its $1 billion sales target.
Salvation in eCommerce
Simon announced its partnership with RGG amid the massive store closures in the U.S. Although admittedly affected by the retail apocalypse, the mall titan managed to rake in higher revenues from its strategically located properties, such as the King of Prussia Mall.
The company said investing in eCommerce helps it diversify its business, which is an excellent way of staying resilient in the face of the changing retail landscape.
To drive customers to ShopPremiumOutlets.com, Simon plans to spend a portion of its $100 million annual budget in marketing and promotion.
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