Vente-Privee closes down American operations

Vente-Privee closes down American operations

Three years after French Vente-Privee crossed the Atlantic to join forces with American Express, the credit card company has revealed it will close down Vente-Privee USA at the end of the year.

"Road to profitability longer than expected"

"Both companies decided that given the road to profitability for vente-privee USA was going to be longer than expected, it was time to focus on other priorities", American Express spokesperson Leah Gerstner said.

 

The French leader in "flash sales" had convinced the credit card market leader in 2011 to create an American joint venture for the affluent American Express user. "We know of a great number of American companies that have come to Europe and now it is a French site, with its own business model, that has come to America", CEO Jacques-Antoine Granjon (co-founder) said at the time.

 

He had hoped to get a 500 million dollar turnover in 4 years' time, but 2013 turnover barely reached 50 million dollars, as stated in a short Vente-Privee press release. By the end of the year, "Vente-Privee with American Express" will come to an end.

 

23 % more turnover in 2013

Vente-Privee was founded in 2001 in France and sells fashion articles at heavily discounted prices. These are usually end-of-line or from overstock and are only sold for a short period of time. Later on, the web shop added decorations, toys, sporting equipment, travel arrangements, wine and theater tickets to its product range. It has even started selling full-priced products a month ago.

 

Vente-Privee's 2013 turnover grew 23 % to 1.6 billion euro. The company now claims to have 22 million members across France, Germany, Spain, Italy, the United Kingdom, Austria, Belgium and the Netherlands. It is unclear how many Americans became a member, while the French are still considering a "new American business model".

Questions or comments? Please feel free to contact the editors


Rakuten bridges gap to Japanese online consumer

30/10/2017

In Alibaba and Amazon’s shadow, Japanese Rakuten Ichiba is quickly developing. Several Western chains are using the platform to sell their products to Japanese online consumers.

Whole Foods contributes to Amazon's enormous turnover increase

27/10/2017

American Amazon’s third quarter turnover grew a lot once more, partially thanks to Whole Foods. This was the first time the chain’s turnover was added to Amazon’s overall turnover.

More than half of American families subscribed at Amazon

21/10/2017

An astonishing ninety million Americans have joined Amazon’s subscription program, Amazon Prime. Considering there are 126 million families in the United States, it is clear that Amazon has a tight grip on its home territory. What can Europe learn from this?

Safe.Shop is new global eCommerce trust mark

16/10/2017

Safe.Shop is the world’s first global eCommerce trust mark. Currently, only twelve countries signed up, but that number should increase in the future.

Fashion platform About You launches in the Netherlands and Belgium

11/10/2017

German fashion web shop About You, the second largest online European fashion retailer, officially launched in Belgium and the Netherlands following an unofficial launch in the Netherlands some time ago.

Alibaba invests billions in physical retail

28/08/2017

Over the past two years, Chinese eCommerce giant Alibaba has spent nearly seven billion euro in physical retail. Its Hema Xiansheng chain already has thirteen supermarkets and it acquired luxury department store Intime from the government in January.

Back to top