Online retail site HauteLook Inc., which sells fashions from premium brands such as Marc Jacobs, Herve Leger and Joe’s Jeans at a steep discount, is preparing a significant expansion.
The downtown L.A. company recently announced a $31 million round of financing led by New York private equity firm Insight Venture Partners.
HauteLook stages sample sales of high-end women’s and men’s fashions and accessories, children’s clothing, toys, and home and beauty products, with merchandise marked down by as much as 75 percent. The sales last between 40 to 72 hours and are only open to HauteLook “members” – customers who’ve filled out registration forms on the website.
Greg Bettinelli, senior vice president of marketing, said the money will allow the company to hire more employees, expand into categories such as gourmet food and wine, gym and spa packages, and increase its marketing efforts to recruit more members.
“The purpose of the funding is to help us grow and grow faster,” Bettinelli said.
HauteLook has already been growing at a rapid clip since it launched in late 2007. The company, which became profitable earlier this year, is expected to reach more than $100 million in sales by the end of 2010, has more than 2.6 million members and sells merchandise from more than 1,000 brands.
Online retailers such as HauteLook and New York’s Gilt Group Inc. have gained in popularity in recent years as the limited-time sales appeal to shoppers who want to snag high-end fashion at bargain prices.
“We started out with three people in a basement,” Bettinelli said. “And now we are up to 175 employees and are doing more than 200 sales each month.”
Seoul Expansion
Natural soda maker Reed’s Inc. is entering the Asian market in an effort to capitalize on consumer demand for soft drinks there.
The L.A. manufacturer signed a distribution agreement with a Seoul, South Korea-based distributor of gourmet foods and beverages, which will now handle two of Reed’s six ginger ale flavors and its Sonoma Sparklers juices.
“Reed’s has been exploring new markets outside of the United States,” said Neal Cohan, Reed’s senior vice president of sales and marketing, in a statement. “We are very excited about working with a Seoul-based gourmet food and beverage distribution partner, which represents a tremendous opportunity to grow our brand internationally.”
Also, the company announced in early June that Fresh & Easy Neighborhood Market, which operates 159 stores throughout California, Arizona and Nevada, will begin carrying selected Reed’s and Virgil’s root beer drinks.
Executive Change
Cynthia Harriss spent the majority of her 37-year retail career working for big-name companies the Gap Inc. and Walt Disney Co., and now she’s taken the top job at specialty retailer Metropark USA Inc.
Harriss joined L.A. area-based Metropark as chief executive in early June after a stint serving as an independent consultant for startups. She’s also served as the president of Gap brand, the president of Disneyland Resorts and senior vice president of Disney Stores.
Metropark, which operates 69 stores throughout the United States and does about $100 million in annual sales, caters to customers in their 20s and 30s with a selection of trendy fashions and accessories. The stores often stage art and fashion shows, and feature DJs.
Irish Footprint
Footwear manufacturer Skechers USA Inc. is going green, and it’s got nothing to do with being environmentally friendly. The Manhattan Beach company is launching retail operations in Ireland.
Skechers has signed a licensing deal with Shuz 4 U Ltd., which is run by retail veterans Sunil Shah and Paul Gallagher, to operate its stores on the Emerald Isle. The first two stores, which Skechers announced June 10, will be in Dublin and Cork. They’re expected to open by the end of this year. The deal calls for the opening of additional retail stores throughout Ireland during the next five years.
In an e-mail to the Business Journal, Skechers President Michael Greenberg said the company already had a wholesale business in Ireland, but needed retail sales points.
“We have a great retail presence in many markets, and this has helped expand and grow our business where we have these stores,” Greenberg said. “But in other markets, we have barely scratched the surface or we have not yet entered as a retailer. This is the case in Ireland.”
Staff reporter Alexa Hyland can be reached at [email protected] or at (323) 549-5225, ext. 235.
