Gilt Groupe

Gilt Groupe's 2016 sale for $250 million to Hudson's Bay represented a 75% markdown from peak $1.1 billion valuation. The flash sale pioneer created urgency through limited-time designer discounts. Competitors flooded in; brands started their own sales. Gilt's differentiation evaporated. The company pivoted to full-price retail and men's fashion, but never found sustainable economics. Gilt demonstrated that first-mover advantage in e-commerce is temporary without structural moats.