Gilt Groupe, who doesn’t offer free shipping or much in the way of discounts tweeted yesterday,”Get an extra 20% off for telling a friend about us on FB. Offer ends 5/11 @ 11:59pm ET: http://on.fb.me/GGinstant.” Perhaps, the flash sale site is feeling generous after it got some new investment loot ($138 million from Goldman Sachs and Japan’s Softbank Group, to be exact) and realized it’s worth $1 Billion.
Not that it’s currently making a profit. The Wall Street Journal wonders if people aren’t as into buying luxury under such strenuous conditions as waiting for your size to become available when someone has had in their cart too long, now that they can actually afford things full price post-Recession. Also, luxury brands don’t have as much overstock as they did even a year ago.
Lest you start feeling badly for the sale site behemoth, Gilt Chief Executive Kevin Ryan said, “Profitability is ‘not a top priority.'” Business is so confusing.