Walmart acquires online women’s fashion retailer ModCloth
18 Mar 2017
Walmart has acquired ModCloth, an online women's fashion retailer, including its assets and operations, in a deal that is expected to push Walmart's e-commerce footprint, the company said in a statement.
Under the deal, which was completed yesterday, the goods would be on sale on Jet.com, an e-commerce site owned by Walmart.
"As we continue to grow our e-commerce presence, Walmart has acquired the assets and operations of ModCloth, one of the top online specialty retailers of unique women's fashion and accessories," Walmart said in a statement.
ModCloth, which has a workforce of 300, would continue to operate in San Francisco, Los Angeles and Pittsburgh, but would join the Walmart e-commerce retail organisation.
Due to the acquisition, designers selling on ModCloth would now be able to avail an opportunity to expand their client base through Walmart's e-commerce sites, the company said.
According to the company's website, ModCloth was founded in 2002 in a college dorm room by Susan Gregg Koger and Eric Koger.
The companies have not disclosed the price tag for the deal, but said it was along the same lines as Walmart's two recent acquisitions.
Walmart acquired online footwear retailer ShoeBuy.com for $70 million and the outdoor and gear seller Moosejaw for $51 million.
The company, known for vintage and quirky styles, was founded in Pittsburgh in 2002 and later moved its headquarters to San Francisco.
''All three ModCloth offices will stay intact,'' said Aire Plichta Reese, a ModCloth spokeswoman.
Walmart had been looking for a stake in online sales and last year paid $3 billion for Jet.com, which Walmart said would ''infuse Walmart with fresh ideas and expertise, as well as an attractive brand with proven appeal, especially with millennials, the first generation of true digital natives.''
In a blog post yesterday, Susan Gregg Koger said the deal ''will give us the necessary resources and support that we need as a business to grow. Growth allows us to reach more women, grow our community, and amplify our message.''