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Online Lingerie Retailer Bare Necessities To Be Acquired By Walmart


10/13/2018


Online Lingerie Retailer Bare Necessities To Be Acquired By Walmart
The intentions of the largest retailer of the world Walmart is now clear with its second acquisition of a firm that is focused on apparel – its strong intent to dug deeper into the online market for fashion. The retailer is set to acquire online lingerie retailer Bare Necessities.  
 
Last week, the retailer announced the acquisition of a fashion startup that sells plus-sized clothing – Eloquii.
 
Walmart has also struck up an agreement in August with the noted the comedian and talk show host Ellen DeGeneres for the launch of one of its own women’s fashion line.
 
The Bentonville, Arkansas based retailer also has a partnership with Lord & Taylor – the department store chain, and the company is now offering its products on its website on Walmart.com. Hudson's Bay Co. is the owner of Lord & Taylor.
 
A specialist in footwear and apparel – ShoeBuy, was also acquired by Walmart last year. The other acquisitions of the company in the apparel industry include the takeover of Moosejaw – engaged in outdoor wear, Bonobos – a firm engaged in selling men's clothing and ModCloth – an online startup that is into the business of women's apparel.
 
The aim of Walmart is acquiring a host of online and retailing small fashion companies is to create an apparel portfolio that would be appealing for the younger, millennial customers and allow Walmart to target them for its business. The aim is to bring that group on to its website and entice them to shop there through the fashion brands it acquired and thereby gain some market share back that it has lost to Amazon.com.
 
The acquisitions are also a reflection of the urgency on the part of Walmart to defend its market share. In 2017, about 6 per cent of the U.S. apparel market was lost by Walmart, while 7.9 per cent was lot by Amazon and 4.8 per cent was lost by Target, according to a report from Morgan Stanley. According to the estimates in the report, Walmart would be overtaken by Amazon to become the leading retailer in the US apparel category in 2018.


"The acquisition of Bare Necessities fits well into our broader acquisition strategy, which includes two different types of companies: category leaders ... and digital brands that offer unique products," Denise Incandela, head of fashion, Walmart U.S. eCommerce, said in a blog post.

She said that Bare Necessities will run as a standalone brand and would continue to operate its own site like it is doing right now. The products offered by the company, which was founded in 1998, includes over 160 brands such as those related to bras, swimwear, shapewear and sleepwear.

Now additional details about the deal were provided by Walmart as well as how the company earnings would be impacted by the acquisition. The retailer also did not make any comments on how this acquisition would be able to increase its market share in the category.

The intimates category on Walmart.com and Jet would be overseen by Noah Wrubel, co-founder and chief executive of the lingerie retailer. Jet is a brand that Walmart acquired in 2016. Wrubel will also continue to run the Bare Necessities business.
 
(Source:www.economictimes.com)