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Walmart Acquires ModCloth Scores Fashion Come Up

The retail giant Walmart is known for low prices on many things especially clothing. But, it doesn’t have quite a reputation for stylish, affordable clothing. In an attempt to up their game, the multi-billion dollar company acquired popular online retailer ModCloth.

Over the last few years, the enormous retail giant Walmart has been losing business to various online companies. One company, in particular, has been a thorn in the retailer’s side, Amazon. The introduction of online grocery shopping as well as the convenience of home delivery, free 2-day shipping for Prime members, and overall higher quality and variety has taken a sizeable chunk out of Walmart’s profits.

Amazon, one of the largest online retailers in the world, has been ahead of the game for years in the aspect that it has allowed third-party sellers to offer their goods on their site, thus expanding the variety of products for their consumers. According to Forbes.com, there are between 50-60 million Amazon Prime users in the United States alone.

Although Amazon and Walmart sell many of the same beauty, homewares, and electronic products, one of the largest differences between the two is the quality of brands in clothing. Taking the online retailer ModCloth under its wing is an attempt to gain consumers from an already trusted brand. According to WWD,  a spokesperson from Walmart expanded on their reason for buying ModCloth.

“Apparel and accessories is the number-one category for digital commerce, according to comScore, with ModCloth, we gain the experience of a well-recognized specialty apparel e-commerce brand that’s trusted by millions of Millennial women.”

This new partnership does seem to be an odd fit for both brands but, Walmart is adamant that they will not be changing much about ModCloth other than the fact it will also be sold through Walmart.com.

The ModCloth team will continue to operate its site and store [in Austin, Tex.] as a stand-alone and complementary brand to our other e-commerce sites. The ModCloth team will bring its significant experience and unique talents to our U.S. e-commerce efforts and will further strengthen the collective capabilities of the overall team.”

Walmart is a household name across America for many reasons, none of them being high-end clothing purchases but with their recent push to buy higher end retail establishments like ModCloth, this may change in time. As they say, the proof is in the pudding.

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