Flash-fashion retailer Gilt Group has resorted to selling capicola and salami. No Joke. This shows 1) the lack of scalability of this model in a singular category, and 2) difficulty in finding higher-end apparel for off-price channels (ROST and TJX).
In what is either a sign of the apocalypse, or just an indication that these ‘internet luxury auction models’ are simply not scalable, off-price flash sale retailer Gilt Group offered cured meats on Monday. Yes, we’re talking gourmet salamis. This plays right into the biggest challenge for these businesses – which is the consistent depth/breath of goods. That’s why we’ve seen these forums evolve into other categories like travel. But capicola? C’mon…
Interestingly, this non-apparel offering coincides with other anecdotes we’ve come across suggesting that higher-end off-pricers are having trouble sourcing goods. The luxury players that were happy to sell inventory into the online channel, are now reverting back to their old Saks, Neiman, and Barney’s ways.
