Zulily, an online retailer known for its flash sales, is set to make a comeback after being acquired by Beyond Inc., the parent company of Overstock and Bed Bath & Beyond. The acquisition, which included Zulily's website, domain names, trademarks, customer database, social media accounts, and software, was completed for $4.5 million in cash.
This move is expected to bolster Beyond Inc.'s position in the off-price market and provide vendors with multiple outlets to improve inventory turns and financial performance. The revival of Zulily comes after a period of financial instability that led to its shutdown at the end of the previous year.
The company had struggled under the ownership of QVC's parent company, Qurate Retail Group, which had acquired it for $2.4 billion in 2015. One of the main issues was the lack of a clear and cohesive business strategy. Zulily struggled to differentiate itself from other online retailers and failed to effectively communicate its value proposition to customers.
Additionally, Zulily faced operational inefficiencies, resulting in delayed order processing and shipping. This led to customer dissatisfaction and a decline in repeat purchases. The lack of a seamless shopping experience further exacerbated these challenges and hindered Zulily. As a result, Zulily's revenues plummeted, resulting in layoffs and the eventual cessation of all operations.
Under the new ownership, Zulily is set to benefit from Beyond's extensive e-commerce expertise and strategic vision. Beyond Inc. plans to have the Zulily site fully functional by the end of the second quarter of 2024. As part of this strategy, Beyond Inc. aims to integrate Zulily with its existing brands, offering customers a range of products at various price points.
The reopening of Zulily under new ownership demonstrating how strategic acquisitions can reshape a company's trajectory and open up new opportunities for growth and market penetration. No official opening date has been announced yet.
