How to Shop in a Discounted World

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Nov. 27 (Bloomberg) -- Rue La La CEO Steve Davis discusses retailing on Thanksgiving weekend with Deirdre Bolton on Bloomberg Television’s "In The Loop." (Source: Bloomberg)

Happy thanksgiving.

Thank you for having me.

We are seeing and planning for a record holiday season this year.

There are a few things striving that season.

Consumers love a black friday deal.

Rue lal la is black friday deals 365 days per year we have black friday deals from designer brands.

It is the brands you love.

That is a contagious thing that goes on.

Flash sale model can mean pressure margins for you.

It has been a great success story over the last five years, certainly for us, as we have gone to approaching $500 million in sales.

Our growth story continues.

Consumers love the model.

Our focus is having the best prices.

We are diligent and religious among making the price is best.

You compete with gilt.

You have to be in front of your computer at noon.

That seems silly to me.

You don't have to be in front of your computer at noon.

The mobile device and a ipads have been an incredible growth story for us over the last few years.

We have gone from a small 2% of our sales to over 40% of our sales on mobile.

It has been a big driver.

You do need to be on your drive -- device at 11:00 a.m. or 3 p.m. when the deal start.

If you want to look at a dress, the smaller screen is a little trickier than maybe on a desktop or in ipad.


There is a talent for making sure you design for the small phone and the small device and to let people know what they are shopping for.

It has to do with simplifying the experience and making sure you have access to great, zoomable images.

Our customers have responded.

Do you have magic in the mix with regard to algorithms?

Will i see the same style or color being offered a little bit more frequently?

We do a tremendous amount of personalization to make sure that we bring you -- we want to bring you the brands that you love every day.

It is a little bit less the black dress and more the designers that you love.

If you love a designer brand, you want to see that designer brand as frequently as you can.

How has it been for you to work with certain merchandisers, certain designers?

Is there a spirit of cooperation?

How easy or difficult is it?

The really interesting story about the flash sale space is that while it is primarily a shopping vehicle, that is certainly the way we get paid -- it is primarily a media consumption vehicle for our customers.

They visit us three to five times per week.

They want to get in front of our members and leverage the marketing platform to tell their story and increase brand awareness for the customers.

Our customers shop in full price and they shop in places like rue la la.

You do have to have a membership.

Membership is free.

As you alluded to, you are tracking certain choices so that the personalization service can be better.

That is correct.

It is a critical driver for us right now.

It will be much more critical over the coming years as we get better and better at it.

We are at the first inning of what it will ultimately become.

You were one of the first companies of its kind.

What has been the biggest change since your tenure as ceo?

The biggest change has been how the brands have embraced the channel as a marketing platform.

In 2008, the brands adopted this channel.

Necessity was the mother of invention.

Challenging times meant they had so much product that they needed to find a route to get rid of it.

As you sit today, we are a marketing platform.

It has been the biggest change in the business and it has been one that has been adopted broadly across the fashion industry.

As far as this holiday season, we read the general stat that for many retailers they expect this will be the worst year since 2009. are you expecting that?

How will this holiday season stack up?

This will be a record holiday season for us.

We are targeting up to 30% growth for this holiday season.

We are very bullish.

We have seen the off-line to online shift driving at.

We have innovated around gifting.

We guarantee that every gift lover on your gift is going to love the gift you give them.

If you don't, we will pay the return shipping to make sure they find a gift they love.

Gift sales are up over 200%

This text has been automatically generated. It may not be 100% accurate.


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