Giggle, a multichannel retailer of baby and children’s products, has acquired Right Start, a baby gear and apparel retailer, with the aim of doubling revenue for the combined company in three years and expanding domestically and internationally, giggle CEO Beth Guastella says.
“With this transaction, we are expanding upon giggle’s presence as the leading specialty retailer within the newborn-toddler industry,” says Riad Abrahams, giggle board member and member of the private investment committee, Maverick Capital.
Giggle and Right Start will maintain their brandidentities because each has a distinct audience, geographic locations and product prices, but the two will operate under the parent umbrella of giggle Inc., Guastella says. Right Start’s corporate headquarters will close and be consolidated with giggle’s headquarters in New York within about six months, she says.
“Each brand has its own strengths and its own draw in the marketplace, and with that product differentiation, we can capture a greater share of the overall market and serve customers in a more meaningful way,” she says.
Right Start was a subsidiary of Liberty Ventures, the Digital Commerce unit of Liberty Interactive Corp. The other division of Liberty Interactive is QVC Group, which consists of TV, web and mobile retailer QVC, e-retailer zulily and a portion of HSN Inc. Liberty Interactive will maintain “a meaningful stake” in giggle Inc., according to giggle. Liberty Ventures is No. 26 in the Internet Retailer 2015 Top 500 Guide.
Right Start’s six stores are located primarily in the Western United States–California, Colorado and Texas—and its utilitarian goods include strollers, travel gear, highchairs and toys from brands such as Fisher Price and Britax. That compares with giggle, a New York-based retailer known as an aspirational brand that sells furniture and room decor aimed at design-conscious first-time parents. Giggle will introduce some of its new giggle-branded products—toys, feeding and bath items, and skin care products—at RightStart.com and in stores, Guastella says.
“This combination makes giggle Inc. a very important player in the market, especially since giggle has always been known as an influencer in the space,” she says.Favorite