Retail Convergence

About Retail Convergence

Retail Convergence Inc. was an e-commerce company founded in 2007 and based in Boston, Massachusetts. The company operated a portfolio of websites, including the off-price marketplace SmartBargains.com and RueLaLa.com, a members-only site for private sales of premier brands. Rue La La, launched in April 2008, provided exclusive access to two-day private sale events featuring upscale brands in categories like fashion, accessories, and home goods.

The company's business model was centered on offering premier-brand merchandise at discounted prices through time-limited online events, which created a sense of urgency and exclusivity. This strategy fostered a highly engaged membership base and rapid growth, driven by the viral marketing nature of its invitation-only platform. In April 2008, Retail Convergence raised $25 million in a Series A funding round from investors including Breakaway Ventures, New England Development, Mugar Investments, and General Catalyst Partners.

In November 2009, GSI Commerce acquired Retail Convergence for a deal valued at up to $350 million, consisting of $180 million upfront and a potential earn-out. At the time of the acquisition, Ben Fischman was the CEO of Retail Convergence and continued to lead the brands under GSI. The company was eventually known as Rue Gilt Groupe, which continues to operate as an off-price e-commerce portfolio.