This week on the GeekWire Podcast: The rise, fall, and revival of Zulily.
We revisit one the most prominent e-commerce brands to come out of Seattle, explain its decline, and consider a plan by Beyond Inc., led by investor and entrepreneur Marcus Lemonis, to acquire its brand assets and relaunch the site.
Zulily was founded in 2010 by two former Blue Nile executives with a focus on serving moms and kids through its online flash sales platform, allowing customers to purchase limited-time deals while using a unique inventory model. This niche focus and sales strategy led to rapid growth, with customer numbers increasing exponentially in its first few years.
It grew quickly and went public in 2013 with a multi-billion dollar valuation.
However, Zulily struggled to maintain its hyper-growth trajectory after going public, and its stock price began to fall in subsequent years. It dealt with complaints about slow shipping and competition from Amazon, among other e-commerce retailers.
Zulily was acquired in 2015 by QVC’s parent company for $2.4 billion, but struggled to regain the magic that helped propel the business in its earlier years.
Under ownership of private equity firm Regent, which acquired Zulily in May 2023, the company saw rapid deterioration including layoffs, unpaid vendors, and ultimately liquidation in late 2023, despite still generating hundreds of millions in sales that year.
Lemonis, known for reviving struggling companies on his former CNBC TV show “The Profit,” joined the board of Beyond in 2023 and last month became its executive chairman. Beyond is the parent company of Overstock.com and acquired bankrupt Bed Bath & Beyond’s assets last year.
Earlier this month Beyond announced an agreement to acquire Zulily’s brand assets for $4.5 million.
In an interview with GeekWire shortly after the announcement, Lemonis emphasized returning Zulily to its flash sales roots to drive revenue without additional fixed costs. He also aims to compete more directly with retailers like Wayfair.
Unanswered questions remain around issues including the potential impact on Zulily’s pending antitrust lawsuit against Amazon. E-commerce growth also faces headwinds as the pandemic boom fades and consumer spending slows. However, Lemonis’ involvement raises hopes, and Beyond’s stock is up 80% in the past month.
