Signalling what could be the beginning of the end of independently-owned subscription boxes, health and beauty retailer, The Hut Group (THG), has acquired GLOSSYBOX from majority shareholders Rocket Internet and Kinnevik Online, the company announced on Monday. The acquisition adds to THG’s growing beauty brand portfolio, which includes Beautybox, Grow Gorgeous and Lookfantastic.com.
According to industry sources, retailer loyalty programs that allow consumers to repurchase products directly from their sites in exchange for points and freebies, are impacting the success of the subscription box model overall. Most recently, it has been reported that Walmart is interested in purchasing subscription box grand dame, Birchbox.
“I am very excited about this acquisition,” said Caren Genthner-Kappesz, CEO, GLOSSYBOX. “It was extremely important to us to find the right buyer for our brand; one that complements us and can use its retail know-how and technological capabilities to accelerate and strengthen GLOSSYBOX further in its journey of being a global industry-leading brand and a well trusted beauty advisor for our engaged subscribers.”
THG has built a solid foundation in subscriptions with its propriety e-commerce technology platform, which has helped dispatch 37 million items to customers across the world. The acquisition is aligned with the company’s goal of extending its international reach, as GLOSSYBOX operates in ten core markets with offices in the UK, Germany, France, Sweden and the USA. THG is planning on investing in talent to help drive growth for GLOSSYBOX, and will evolve the brand to become the company’s tech-hub.
“This is another significant investment for The Hut Group,” said Matthew Moulding, Founder and Chief Executive Officer, The Hut Group. “In GLOSSYBOX, we have acquired a great brand, with a solid and engaged customer base that, once powered through our platform and marketing infrastructure, should be capable of further significant growth.”
Terms of the deal were not disclosed.