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Walmart announced Friday it has acquired online retailer Bare Necessities for an undisclosed amount, its second acquisition focused on clothing in less than two weeks, while it seeks to penetrate deeper into the world. online fashion.
Last week, Walmart acquired Eloquii, a fashion startup that sells plus size clothing.
The company also established links with comedian and host Ellen DeGeneres to launch a women's fashion line in August.
In 2017, the retailer based in Bentonville, Arkansas, joined the Lord & Taylor chain of department stores and began offering its products on Walmart.com. Lord & Taylor belongs to Hudson's Bay Co.
Last year, Walmart also bought ShoeBuy, specializing in footwear and clothing. Moosejaw, who sells outerwear; Bonobos, which sells men's clothing and ModCloth, an online seller of women's clothing.
The Walmart Fashion Small Business Acquisition Series is designed to help the retailer access younger and older customers, who do not normally buy from their website, and recover the lost ground by Amazon.com and others.
The agreement also reflects a sense of urgency to defend market share. According to a Morgan Stanley report, Walmart held 8.6% of the US apparel market in 2017, followed by Amazon at 7.9% and Target at 4.8%.
According to the report, Amazon will overtake Walmart as the leading retailer in the apparel category in 2018.
"The acquisition of Bare Necessities fits perfectly into our overall acquisition strategy, which includes two types of companies: category leaders … and digital brands offering products. unique, "said Denise Incandela, head of fashion at Walmart US eCommerce. blog post.
Bare Necessities will continue to operate as before and will function as a standalone brand, she said. The company was founded in 1998 and offers more than 160 brands, including bras, swimwear, sewing and nightwear.
Walmart did not provide further details on the impact of the acquisition on the results or how this purchase would enhance its market share in the category.
Noah Wrubel, co-founder and general manager of the lingerie retailer, will oversee the intimate category on Walmart.com and Jet.com, which Walmart acquired in 2016. Wrubel will also continue to manage the Bare Necessities business.
The deal was reached Friday, said Walmart. The retailer's shares finished up 0.95% to $ 94.81 per share.
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