Dive Brief:

• Amazon plans to shutter its MyHabit flash sales site at the end of May, Women’s Wear Daily reports. The CEO of the unit, Garth Mader, has taken a new role leading Amazon’s private-label apparel and accessories business, according to his LinkedIn profile.

• MyHabit was formed five years ago, but, like many other flash sales sites, has struggled in recent years. 

• Amazon hasn’t responded to press inquires about the report.

Dive Insight:

Flash sales sites have certainly fallen from their early perch, which was high in the days when many designer fashion companies had lots of inventory to unload because the Great Recession had taken such a toll on sales. Brands also started scaling back the production of their luxury goods to avoid tarnishing their luxury image by being sold in these off-price retailers, and the flash sales sites themselves also ran into customer service issues and unappealing shipping rates. 

Amazon's move is the latest in a series of closures or sell-offs among flash sales sites. Most recently, the shining star of the space, Gilt Groupe, was acquired by Hudson’s Bay for $250 million well below its former $1.1 billion valuation.

But there may yet be a role for them.

Hudson’s Bay’s purchase of the flash-sales company, for example, solves problems for its Saks Fifth Avenue brand and for Gilt, especially as Saks looks to compete with Nordstrom. The company plans to have Gilt “concept shops” within some Off 5th stores, an important wedge that could get shoppers heading to their physical locations. Gilt is also a good way to move excess inventory. 

“Retail stores will always risk overbuying than selling out too quickly,” RSR Research analyst Nikki Baird told Retail Dive earlier this year. “So there’s always going to be some room. I think what might be really interesting to look at is how [flash sales sites] are competing more with T.J. Maxx or Ross stores and how, because T.J. Maxx and Ross have been very anti-e-commerce, maybe they’re going to have to up their game.”

While Amazon appears to be pivoting from MyHabit to focus on the roll-out of its new private-label fashion lines, it may also be shuttering a handy way to unload any excess inventory, or in any case another channel for apparel sales.

At an investor conference in New York last month, Macy’s CEO Terry Lundgren told analysts that while Amazon poses a threat in its apparel sales effort, the e-retail giant may not be quite prepared for the logistics of apparel sales online.

Noting that shoppers tend to order the same item in multiple sizes, try them on and return all but the one that fits (if they like it), Lundgren told investors that Amazon is "going to have an interesting challenge when they start getting all those returns coming back online.”