The question on everyone's mind now is "What is a flash sale sight? How will it help Nordstrom?" Answer: A flash sale site is a website that holds 24 hour (give or take) sales on luxury clothing items, furniture and sometimes even vacations or cruises. These website are often exclusive with a members only policy. Nordstrom hopes to make HauteLook as profitable and extensive as other flash sale sites such as RueLaLa and Gilt (WSJ.com). The flash sale sights came about during the recession, when luxury clothes were no longer a popular item and inventories need to shrink. They have been popular since then, but recently full priced luxury items have been bought more constantly since the recession.
The flash sale sites seem to making an impact on Nordstrom already, and it is predicted to be paying $180 or $90 million dollars in stock based on previous estimates. Nordstrom does not want to integrate the company and label it a 'Nordstrom company' because Nordstrom already has a substantial web page for their department store and does not need the confusion of having another luxury discount company that might get shoppers confused with the discount-Nordstrom Rack stores.
This acquisition will ultimately help Nordstrom if the country continues to stay in a state of mind where discounted clothes are wanted, but if the economy continues to grow, the sites will probably not make as much as anticipated. The exclusivity of the site will continue to motivate members to buy from HauteLook, but it might just be a one trick pony for the short term until the economy reaches a point where luxury clothes can be purchased at full price.
(http://online.wsj.com/article/SB10001424052748703561604576150770985132088.html?mod=WSJ_Retailing_leftHeadlines)
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