Last week may have been one of the biggest vacation stretches of the summer, but it was business as usual over at QVC.
As the Wall Street Journal reported, QVC is purchasing rival Home Shopping Network (HSN) for more than $2 billion. (QVC already 38 percent of HSN shares.) The merger will result in a new company, QVC Group (which will also include Zulily), with sources saying that the two will continue to operate as "distinct brands," and preserve their "unique identities, cultures and customer following."
You May Also Like: You'll Never Guess Who Is Buying Elizabeth Arden
The numbers don't lie for the popularity of the household names: According to the Washington Post, "the two companies count 23 million customers—though there may be some overlap—and 2 billion website visits, and they combine for 320 million packages shipped annually."
And as for those all-important beauty numbers? As QVC shared with us, the move to merge is only going to "expand diversity of brand and product offering" and "strengthen brand portfolios."
Currently, HSN pegs 23 percent of its business as falling under the beauty and health category, with includes names like Prai, Lancôme, Serious Skincare and IMAN in that sector. QVC counts 17 percent, with Philosophy, IT Cosmetics, Perricone MD and Peter Thomas Roth making up the mix. (HSN has 664 products on-air each week, compared with QVC's 770.)
"We're thrilled to welcome the HSNi team to our company. HSNi founded the industry forty years ago and helped it grow with exciting initiatives like Shop By Remote and media integrations with leading content producers. By creating the leader in discovery-based shopping, we will enhance the customer experience, accelerate innovation, leverage our resources and talents to further strengthen our brands, and redeploy savings for innovation and growth," said Mike George, QVC president and CEO, in a statement. "As the prominent global video commerce retailer and North America's third largest mobile and eCommerce retailer, the combined company will be well-positioned to help shape the next generation of retailing."
A post shared by QVC (@qvc) on Jan 7, 2017 at 7:05am PST