Vente-Privee to exit US market
Vente-Privee, the French luxury online shopping site, is to exit the US market after it was revealed that its joint venture with American Express will close by the end of the year.
The joint venture began operating in the US in 2011 and was the first non-European market entry for Vente-Privee which sells designer goods to members at discounted prices through flash sales.
American Express said the decision to close the joint venture was a mutual one as the road to profitability in the US was going to take longer than expected.
Vente Privee said in a statement: “Over the past three years, Vente-Privee made many noteworthy achievements in the US market, including over $50 million in sales this year. The company does however acknowledge that an exponential amount of time, resources and financial investment would be required to achieve significant growth in the US with the current model.
“While Vente-Privee will maintain its focus on key markets where the potential for growth is much greater and can be achieved much quicker.”
The company added that is now considering a new model in the US.
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