While shoppers flock to outlet malls in search of bargains, selection and a shopping experience, Simon Properties, the owner of the Roosevelt Field mall, has opened and is investing in a kind of online outlet mall.
The Indianapolis-based company has opened and is touting Shop Premium Outlets or SPO as its “new online outlet marketplace” with more than 200,000 products, according to the site, exclusive offers up to 65 percent off.
And, of course, this “online outlet marketplace” is open around the clock in a blend of bricks and clicks – as the retailer seeks to add digital real estate to its portfolio and to expand its own retailers’ sales online.
Simon said it reached a deal with Rue Gilt Groupe, a company backed by entrepreneur Michael Rubin, to create this new “multi-platform venture dedicated to digital value shopping.”
The new venture combines Simon’s expertise and resources with RGG’s e-commerce expertise and platforms as well as Shop Premium Outlets.
“Our strong capabilities in the physical outlet space, combined with RGG’s exceptional e-commerce success, will give shoppers enhanced access to the world’s best brands and the most compelling deals both online and in-store,” Simon CEO David Simon said in a written statement.
Simon plans to contribute approximately $280 million to the new venture, including the value of SPO, which has been beta tested since March.
SPO, which debuted on Oct. 2, is being billed as offering “world-class brands at outlet pricing,” driving online sales for retailers.
“Over the coming year, Simon will promote the new venture utilizing a portion of its well over $100 million plus annual marketing budget and access to two billion annual shopper visits,” Simon said in a written statement.
The partnership will also have access to Simon’s and RGG’s databases, reaching more than 35 million shoppers.
“We believe online value shopping presents a tremendous business opportunity for Simon, given our credibility, trust and relationships with brands, retailers and shoppers,” Simon added.
Rubin called the online outlet or discount market “a massive opportunity ready for the next disruptor” and said “partnering with industry leader Simon” would help create a massive digital shopping site.