Walmart Sells ModCloth Two Years After Acquisition
Two years after Walmart went on an acquisition spree, buying several smaller e-commerce players, the retailer is switching gears, choosing to build its own omnichannel brands instead of buying them. ModCloth, one of those purchases, is being sold. The switch in focus comes as competing with Amazon takes a toll on Walmart’s e-commerce division, which is expected to lose about $1 billion this year.
Walmart is also reportedly looking to sell Jetblack, a successful personal shopping service that has nevertheless proven extremely costly to maintain.
“When we acquired ModCloth, our primary focus was to build assortment through proprietary, digitally-native brands,” a Walmart spokesperson told The Verge. “Our approach has evolved and our current focus is on building direct to consumer brands that we can leverage in an omni way…”