July 5, 2011, 4:42 PM

Beyond the Rack buys the customer list of a failed flash-sale site

The e-retailer says it acquired more than 100,000 names from BeautyStory.com.

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Private-sale site Beyond the Rack announced today it has acquired flash-sale site BeautyStory.com’s customer list of more than 100,000 members. BeautyStory.com shut down its web site earlier this year.

The agreement will fold BeautyStory.com members into Beyond the Rack’s membership. That means that BeautyStory members will receive Beyond the Rack’s e-mails, and any outstanding credits that a consumer had on BeautyStory will appear on Beyond the Rack. Moreover, the site BeautyStory.com now redirects shoppers to BeyondtheRack.com. Terms of the deal were not disclosed.

However, Beyond the Rack did not buy BeautyStory.com, which means it will not assume any of its liabilities, says CEO Yona Shtern. “We’re just providing an opportunity for their members to shop in our environment,” he says. “It’s like the pharmacy down the street is shutting down and your prescription is transferred to another pharmacy.”

The deal is a sign that the private-sale market is consolidating, says Shtern, who says that Beyond the Rack will announce a similar acquisition in the next few weeks. “This is a way for a business like BeautyStory to create a bridge for its owners and its customers rather than have them go off a cliff.”

Beyond the Rack, which says it has more than 4 million members, is No. 191 in the Internet Retailer Top 500 Guide.


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