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Walmart has gobbled up a slew of brands since 2010 - and it's all part of a long-term strategy for taking on Amazon and winning over a new generation of shoppers
Walmart has gobbled up a slew of brands since 2010 - and it's all part of a long-term strategy for taking on Amazon and winning over a new generation of shoppers
Áine CainDec 11, 2018, 19:40 IST
Walmart
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Walmart has been on an online brands binge for several years now.
Bonobos, ModCloth, and Art.com are just a few of the brands the retail giant has snapped up since 2010.
Walmart's pivot toward digital-native companies likely indicates its outlook on the future of retail.
Walmart has been devouring online retailer after online retailer for the past few years.
So what's behind this banquet of brands? The fact that many of the acquired companies belong to the realm of e-commerce indicates that this is all part of Walmart's ongoing battle with Amazon.
But it's also about appealing to the younger, more affluent generation of consumers that flocks to brands like Bonobos and ModCloth.
A Walmart spokesperson previously told Business Insider that "one of the drivers for customers to continue coming back to your brand is going to be finding products and experiences that they just can't get anywhere else."
So the future isn't just about being online - it's also about having products that exude exclusivity and set you apart from the competition.
Business Insider previously reported on a note from financial services firm Cowen and Company that said Walmart's e-commerce president and CEO Marc Lore believes the retail giant needs to acquire 40 to 50 "successful digitally native retailers" in order to "resonate with millennials."
So despite the spate of acquisitions, Walmart still has a long way to go, at least by Cowen and Company's estimate.
Here's a look at the slew of digitally oriented brands that Walmart has scooped up in recent years:
Walmart acquired streaming and media company Vudu back in 2010, most likely in a move to compete with Amazon.
This fall, Walmart entered into a partnership with MGM Holdings and interactive video startup Eko, in the hopes of creating more original content for the site.
Kosmix
Kosmix — the original name of what has since become Walmart Labs — is another one of Walmart's early digital acquisitions.
The $3.3 billion acquisition of Jet.com in August 2016 further propelled Walmart to a larger claim within the realm of online commerce. The purchase was largely seen as Walmart's bid to compete with Amazon in the e-commerce space.
As an added bonus, Walmart acquired Omaha-based online retailer Hayneedle through its purchase of Jet.com. The Omaha World-Herald speculated that Hayneedle would help Walmart play "online catch-up" with Amazon.
Shoes.com
In what Business Insider Intelligence interpreted as a play to "boost overall online sales growth" on Jet.com, Walmart purchased e-commerce outlet Shoes.com for $70 million in January 2017.
ModCloth
ModCloth was yet another clothing retailer swallowed up by Walmart. Though many ModCloth shoppers weren't too happy about the news of the acquisition when it was announced in March 2017, the vintage-inspired apparel store started opening stores across the US this year.
The announcement prompted a bit of a backlash among Bonobos fans at the time, but the acquisition appears to have been all part of Walmart's ongoing strategy to bolster its online-centric brands.
Parcel
Walmart took a bit of a break from acquiring clothing retailers in order to purchase New York-based delivery startup Parcel in October 2017.
Walmart acquired premium outdoor store Moosejaw in 2017. The reported purchase price was $51 million.
In August 2018, Walmart unveiled a premium outdoor outlet curated by Moosejaw, featuring specially selected outdoor gear and apparel from a range of brands.
In a statement, Anthony Soohoo, Walmart US SVP and home group general manager, said that the deal would help Walmart give "customers the inspiration and confidence to make a beautiful home possible for everyone."
