(Author : retail in asia)
Walmart has bought another online retailer. This time it’s ModCloth, a fashion brand with a quirky style aesthetic that makes the acquisition about a lot more than clothes.
ModCloth employees were told Wednesday morning they now worked for Walmart, according to Jezebel. TechCrunch estimates Walmart’s purchase price is between $50 million and $75 million. The deal is set to be finalized today and announced on Friday. ModCloth is a brand with indie cred. The company carries plus sizes and has a unique approach to fashion that mirrors its founders’ fondness for vintage goods.
The acquisition is being made through Jet.com, which Walmart bought last year for more than $3 billion. Through Jet, Walmart is making its most aggressive moves to date, buying new businesses, introducing new pricing and online features and generally stepping up its game to better compete with Amazon.
In the several months following the Jet acquisition, Walmart purchased Zappos competitor Shoebuy.com and Moosejaw, another online retailer with a reputation for being quirky with a strong following among younger customers. With each acquisition, Walmart strategically buys new customers. It’s part of the company’s overall strategy to grow digital sales and grow their customer base.
Source : retailinasia.com