Beyond the Rack is already the number three ecommerce site in Canada behind Amazon and eBay, pointed out Shtern, and is now gunning for number one.
Many of the company’s numbers bely its age; Shtern estimates revenue will come in between $160-180-million this year. Beyond the Rack has 7.5-million consumer members and is adding 200,000 each month. It has 3000 brand partners and, although the company has been closely associated with its “flash sales” of women’s apparel, the company’s home business is its biggest winner, accounting for a third of its current topline. It sells more than a million dollars worth of sheets each month.
After raising $53-million from investors such as iNovia Capital, Rho Canada, Highland Capital Partners and BDC Venture Capital, the Quebec-based company’s sales topped $50-million in its second year and $100-million in its third.
Brands like Beyond the Rack, says Shtern, because its traditional avenues for liquidating product nets them between ten and fifteen cents on the dollar, while BTR can make them fifty or sixty cents.
Shtern says going forward the company would like to expand its flash sale business, but also expand into parallel ecommerce verticals. He says the goal is to become a billion dollar company within five years.