Confirmed: Walmart acquires another online retailer
Walmart continues to grow both its e-commerce and fashion presence.
On Friday, the discounter announced it had acquired the assets and operations of online retailer ModCloth, which specializes in eclectic and quirky apparel and accessories for 18- to 35-year-old women. The company did not reveal the purchase price.
ModCloth is Walmart’s fourth online acquisition since September, when it completed its purchase of Jet.com. In December, the chain bought Shoebuy, and in February it acquired outdoor apparel retailer Moosejaw. Shoebuy, Moosejaw and ModCloth all target younger and more affluent customers than those that make up Walmart’s core audience.
Founded in 2002, ModCloth sells its own vintage-inspired branded merchandise in a full range of sizes, along with a curated selection of styles from hundreds of indie designers. The brand enjoys a strong social media following. The company has made several forays into brick-and-mortar, including pop-up sites along with a permanent store in Austin, Texas.
Similar to the model Walmart has used with its other online acquisitions, the ModCloth team will continue to operate its site and store as a standalone and complementary brand to Walmart’s e-commerce sites. ModCloth CEO Matthew Kaness, his executive team, and the company’s 300-plus employees will continue to be based in San Francisco, Los Angeles and Pittsburgh, and will join Walmart’s U.S. e-commerce retail organization.
“Designers that sell on ModCloth who are interested in expanding their consumer reach will now have the opportunity to serve more customers through Jet.com and our other e-commerce sites,” Walmart stated.
In a statement on her blog, ModCloth co-founder Susan Gregg Koger said that the acquisition will give ModCloth the resources and support it needs as a business to grow, including in the brick-and-mortar space.
“Growth allows us to reach more women, grow our community, and amplify our message,” Gregg stated. “Our mission to help our customers feel like the best version of themselves continues. And our commitment to inclusivity continues. Our amazing team continues. And we can open more stores — in your hometown!