Last Updated on December 27, 2023 by Robert C. Hoopes
Online retailer Zulily, known for its specialization in children’s and women’s apparel, has announced its closure. The company cited the challenging business environment and financial instability as the reasons behind this decision. Zulily, which launched in 2010 and went public in 2013, was once valued at approximately $9 billion. However, increased competition from well-funded rivals like Temu, Shein, and Amazon has led to its downfall.
Zulily gained popularity through its aggressive advertising strategies on various social media platforms and became a staple of Seattle’s tech scene. However, the company has experienced a decline in recent years, leading to multiple layoffs across different states. In May, Zulily was acquired by private equity firm Regent from Qurate Retail Group. Despite the ownership change, Zulily’s financial struggles continued, ultimately resulting in its closure.
Customers who have pending orders with Zulily can expect them to be fulfilled or receive a refund by January 22. Although the closure is undoubtedly disappointing for Zulily’s loyal customer base, it does provide some reassurance that their orders will not go unfulfilled.
Zulily’s closure also comes on the heels of a lawsuit against Amazon, in which the online retailer accused the tech giant of engaging in anti-competitive practices. However, Amazon has denied these allegations. While the outcome of the lawsuit remains uncertain, it is clear that the competitive landscape has played a significant role in Zulily’s demise.
The closure of Zulily serves as a reminder of the challenges faced by businesses operating in the ever-evolving e-commerce industry. Even with a strong start and a significant market presence, companies must continually adapt and innovate to stay ahead of their competitors.