Walmart sells women's clothing and clothing company ModCloth only two years after its acquisition. The brand will now be part of the Go Global Retail investment firm, although it will operate independently.
"We expect them to continue in the same direction as before," said Christian Feyer, managing director of Go Global Retail, Border . "I don't think the customer will see the changes. If they do, I hope they will be happy with what they saw."
When the company sold Walmart in March 2017, many customers reportedly felt betrayed. "What I liked about ModCloth is that I knew that the clothes I bought there couldn't be found in Macy's and were not worn by the masses," Connie Warner told The Los Angeles Times . Warner launched a ModCloth boycott Facebook page to protest against new store owners. "No more. I unsubscribed from their emails. I refuse to shop at a Walmart store. "
For Walmart, the deal was part of a larger ecommerce business strategy, trying to compete with Amazon. said Walmart Spokesman to The Verge. "Our approach has evolved and our current focus is on building direct consumer brands that we can use comprehensively. As with online grocery, we are investingin areas where our omni capabilities and unique benefits make us win. "
If you don't follow the" omni "jargon, Walmart tries to focus on products that play well in stores and on the Internet. And that makes sense – Walmart has sunk billions trying to compete with Amazon. Although some of that money has paid off – online sales have increased 40 percent last year in the United States – the e-commerce division is forecasting losses of more than $ 1 billion this year.
Hours after the ModCloth deal was announced, The Wall Street Journal reported that Walmart was also seeking to sell its personal brand Jetblack. The boutique service allows customers to make purchases via text message and deliver their items within an hour – but it wasted a lot of money. "At the beginning of this summer, Jetblack was losing about $ 15,000 a member annually," wrote the Wall Street Journal .
For ModCloth loyalists who jumped ship in 2017, it may be time to come back. Although Feyer plans to grow the brand in the US and abroad, he wants it to stay true to its roots. "We are all focused on making ModCloth a retailer with a special focus on women's fashion," he said.