Jet.com acquires online retailer Hayneedle
February 29, 2016 12:42 PM
Online marketplace Jet.com has acquired home products e-retailer Hayneedle Inc., one of the 100 largest web merchants in North America by sales. Terms were not disclosed.
In a Twitter post Friday, Hayneedle said, “We will continue providing the best online shopping experience for our customers as a subsidiary of @Jet.” Another Twitter post linked to an Omaha World-Herald story on Omaha.com that reported on the deal. Hayneedle is based in Omaha, Neb.
Hayneedle, No. 95 in the Internet Retailer 2015 Top 500 Guide, had Internet Retailer-estimated 2014 web sales of $404 million, according to Top500Guide.com. Hayneedle had not sold goods on Jet.com, but the acquisition—expected to close this week—“will provide the customer shopping on Jet.com a stronger assortment of indoor and outdoor home furnishings and decor,” says Jennifer Dorfmeyer, Hayneedle’s brand marketing manager. Jet.com executives could not be reached for comment.
Becoming a subsidiary of Jet will introduce Hayneedle into new channels and provide resources to grow Hayneedle.com, Dorfmeyer tells Internet Retailer. “We are excited to introduce more consumers to our brand and our exclusive line of in-house branded products, extensive product assortment, top-rated customer service and best-in-class infrastructure that clearly differentiates us among other retailers in the space. This partnership will also allow Hayneedle to fully leverage its unique strengths in delivering large home products to customers,” she says.
Other retailers in the home furnishings and decor space include Wayfair LLC, No. 33 in the Top 500, which last week reported that direct-to-consumer sales, which are orders placed on Wayfair.com, Joss & Main, AllModern, Birch Lane and Dwell Studio, nearly doubled in the fourth quarter compared with the year-ago period. For 2015, sales on Wayfair’s websites increased 85.5% compared with 2014.
Jet.com in November received $350 million in financing, led by Fidelity Investment, and said there were plans for $150 million more in funding in the near future. Jet said at the time its valuation was at $1 billion.
Jet, launched in July, says it had more than 1 million customers as of mid-October. In December Jet reported sales of $2.7 million on Cyber Monday, the Monday after Thanksgiving, the highest sales day in its short existence.
Jet carries more than 7 million SKUs, including goods from such retail chains as Toys ‘R’ Us Inc. (No. 40 in the Internet Retailer 2015 Top 500 Guide), Barnes & Noble Inc. (No. 47) and Sports Authority (No. 277) selling on its platform. The two top-selling products on Cyber were a PS4 Sony Dualshock 4 controller and Kleenex Ultra facial tissues.