Simon Property Group (NYSE:SPG) and Rue Gilt Groupe, which is backed by entrepreneur Michael Rubin, will start a new multi-platform dedicated to digital value shopping.
The venture will combine Simon's in-store retail leadership with RGG's e-commerce expertise and include RGG's Rue La La and Gilt platforms as well as Simon's online marketplace Shop Premium Outlets (SPO).
Simon will contribute ~$280M to the new venture including the value of of SPO, which has been successfully beta-tested since March 2019.
SPO debuts today, encompassing more than 2,000 designers and 300,000 products with more merchants to join over time.
Over the coming year, Simon will promote the venture using part of its $100M+ annual marketing budget and access to 2B annual shopper visits.
The partnership will also leverage the combined databases of Simon and RGG reaching more than 35M shoppers.
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