Mall Owner and Online Retailer Team up for an eCommerce Site


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.

mallSimon 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

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, Simon plans to spend a portion of its $100 million annual budget in marketing and promotion.

What do you think of this uncommon partnership between a mall owner and an online retailer? Share your thoughts in the comments below or in our Facebook Group.

For almost 10 years Dave has been involved with eCommerce with a particular interest in the marketplaces and the huge opportunities available for sellers when utilizing a multi-channel strategy. After a year of being the UK’s youngest eCommerce consultant it was the opportunity to start UnderstandingE with Matt Ogborne showing the world how to utilize Magento as the Third Generation of Multi-Channel software. Dave also recently started a YouTube channel called the Manc Entrepreneur (click YouTube icon link below to watch Dave's videos) where he discusses all things eCommerce and entrepreneurship aimed to help young entrepreneurs get started on their own journey. When Dave isn’t working his main interests include, Technology, Cars and throwing himself off high things into water.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.