Another flash sales site bites the dust. This time, e-commerce giant Amazon is shuttering its sales site MyHabit.
The move is part of the growing consolidation of the once-hot flash sales startup market.
Gilt, which was once valued at $1 billion, was acquired by Hudson’s Bay Company, the parent of Saks Fifth Avenue earlier this year for $250 million, a fraction of Gilt’s last valuation. Shares in Zulily, a Gilt rival, plunged over 60% following its initial public offering in 2014. Last year, it sold itself to the parent of home shopping channel QVC for $2.4 billion. Ideeli, which had raised over $100 million from investors, was sold to Groupon in 2014 in a fire-sale. Like Gilt, Fab.com was also valued at $1 billion, but sold for $15 million in 2014.
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The irony is that many of these sites couldn’t compete with Amazon’s dominance. It appears Amazon-owned MyHabit, which opened in 2011, suffered the same fate at the hands of its parent.
As reported in Women’s Wear Daily, MyHabit will close at the end of May.
Amazon issued this statement to WWD:
Fashion is one of Amazon’s fastest-growing categories. As we continue to increase our breadth of selection and improve the customer experience on Amazon.com, we have decided to simplify our offering and will be closing MyHabit at the end of May. Our customers can now shop from Amazon Fashion’s incredible assortment of brands across clothing, shoes and accessories—backed by award-winning service, free shipping and returns, and exclusive benefits for Prime members.
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That doesn’t mean Amazon is abandoning its other fashion initiatives. The company is forging ahead with developing its own private label clothing lines.
