Walmart Scoops up Online Retailer ModCloth

photo credit: ModCloth

Walmart is upping its fashion game with an acquisition.

The retail behemoth recently purchased indie fashion etailer ModCloth for its Jet.com subsidiary, reports Jezebel. The move gives the company instant fashion cred among the smart, stylish women that flock to ModCloth for vintage-inspired, quirky styles.

According to the news site, employees were informed by CEO Matthew Kaness on Wednesday at an all-hands meeting. The deal is expected to close today with a public announcement to follow.

Now, the question becomes can Jet.com tap into the attributes that have garnered ModCloth a devoted fan following, or will ModCloth lose its homespun, approachable feel in the deal?

ModCloth is known for having a great relationship with its fans. The site regularly solicits design inspiration and buying advice from its followers, offers inclusive images on its site, provides personable insights into its staff and their pets, and has a knack for using social to connect with consumers based on their interests. For instance, once the company noted how many of their fans are avid readers, it launched a Good Reads book review account.

ModCloth has also had success with product expansions, which have included private label lines, plus-size fashions and children’s wear collaborations.

ModCloth was launched in 2002 by Susan Gregg Koger and Eric Koger while they were in college. And today, the site employees more than 350 employees, according to the site. The company also just launched its first brick-and-mortar location in Austin, Texas.

With the acquisition of Jet.com over the summer, Walmart signaled its intention to be a major force in ecommerce and to better positioned to compete with established competitors like Amazon.

“Walmart.com will grow faster, the seamless shopping experience we’re pursuing will happen quicker, and we’ll enable the Jet brand to be even more successful in a shorter period of time,” said Walmart CEO Doug McMillon, at the time of the deal.

ModCloth is the latest piece of the puzzle for Jet.com, which recently acquired footwear retailer Shoebuy for $70 million and outdoor retailer Moosejaw for $51 million.

This content is for Annual, Monthly and Limited members only. You can read up to five free articles each month with a Limited Level Subscription. Please log in, or register.
Log In Register

Recent News

Is AI Smart Enough to Save Retail?

At its best, AI—which allows computers to crunch millions of data points and provide better results with each interaction—is like human sales help, only better.

This content is for Annual, Monthly and Limited members only. You can read up to five free articles each month with a Limited Level Subscription. Please log in, or register.
Log In Register
Read more

Li & Fung Profits Plunge 47 Percent on “Toughest” Ever Trading Environment

It’s tough times for the middleman as e-commerce increasingly connects producers with consumers, and that fact played its part in the nearly 50 percent plunge in Li & Fung’s profits last year.

This content is for Annual, Monthly and Limited members only. You can read up to five free articles each month with a Limited Level Subscription. Please log in, or register.
Log In Register
Read more

BCG: India Will be the Third Biggest Consumer Market by 2025

India’s consumer is changing—spending more and spending it differently—and between now and 2025, opportunities will be many for companies that can correctly customize their approaches and offerings.

This content is for Annual, Monthly and Limited members only. You can read up to five free articles each month with a Limited Level Subscription. Please log in, or register.
Log In Register
Read more