Gilt Groupe Expands West
California shoppers will no longer have to wait up to 15 days for their Gilt Groupe purchases with the opening of a new distribution center in Las Vegas this month.
Merchandise purchased from West Coast suppliers will now be able to ship directly from the center in Las Vegas, opened earlier this month, rather than having to be routed through centers in Louisville, Ky., or Brooklyn, N.Y., said Christopher Halkyard, vice president of operations for Gilt Groupe Inc.
“We’re saving all of the inbound time it used to take from L.A. to New York to the customer. hellip; Now it’s L.A. to Las Vegas to the customer. Depending on where the merchandise is located, you’re looking at only seven to eight days.”
Gilt Groupe uses a “sell-first” business model. Rather than holding inventory in a warehouse, the company waits to buy merchandise from vendors until after the customer has purchased the products online. This can make for lengthy shipping times if a vendor is located across the country from the distribution center. Now, with a West Coast location, Halkyard hopes to drastically cut down on wait time.
“The sole reason we opened the Vegas distribution center is to improve our speed and accuracy to the customer,” Halkyard said.
The center is expected to provide around 75 jobs for workers in Las Vegas.—Deidre Crawford
