Yes, you read that right. One of the largest multinational retail corporations has recently diversified into an entirely new field by acquiring ModCloth. Walmart currently operates a chain of hypermarkets, discount departments stores and grocery stores, but that will all change now with its latest acquisition of ModCloth. This deal was finalized last Friday and included assets and operations. The idea behind this acquisition is to help increase Walmart’s online presence and their ecommerce footprint.
ModCloth is a woman’s wear retail store that specializes in catering to a younger demographic instead of the traditional thin frail look that social media promotes. This company has been dominating the market for the past few years due to their progressive approach of women wear as they have departed from the stagnant approach of providing apparel only to women with model like sizes. This approach has gained massive popularity amongst end users as it has been hailed time and again as a step in the right direction.
According to authentic reports, the deal was finalized on Friday and the acquisition included a deal between $60 million and $75 million. Of course, both parties have not yet publically declared the exact amount, but a ballpark figure was provided by a Walmart representative. ModCloth, although has been enjoying lucrative profits, have claimed that the past few years have been devastating on them and this acquisition will help them reach more women and empower them to be the best versions of themselves.
There is no doubt that ModCloth will help Walmart increase their ecommerce presence as it has an extremely strong social media presence that targets a highly engaged community. Their goal of pioneering in the promotion of size diversity will help Walmart reach out to consumers and will also help fuel their social media presence by a substantial margin. On the other hand, many people are concerned about how this acquisition will affect ModCloth and its operations, as an acquisition implies the new company will instill their business persona into the acquired company. However, Walmart has recently announced how ModCloth will fit into their ecommerce business and have outlined its operation network.
How will ModCloth Now Operate?
For all of those avid ModCloth fans out there, rest assured, Walmart does not intend to poison the impeccable goal and business persona of ModCloth but they want to help them achieve greater horizons by providing them with the required funds. The following points outline how Walmart intends to achieve this goal.
- ModCloth will continue to operate using its current websites, but will now be able to sell its products on other ecommerce sites as well.
- ModCloth’s team will bring their significant experience and will help Walmart grow online in terms of woman apparel.
- ModCloth will continue operating with their current team. This means that the 300 people they employ can take a sigh of relief.
- ModCloth will now have the funds required to become one of the leading woman apparel retail stores.
So there is no doubt that ModCloth can now achieve their esteemed goals and can help women all around the world feel more empowered with their array of clothing options.