Intimates Brand Bare Necessities to Be Acquired by Delta Galil Industries
Delta Galil Industries, the global manufacturer and marketer of branded and private-label apparel products for men, women and children, as well as leisurewear and activewear, announced that it has signed an agreement to acquire leading intimates brand Bare Necessities from Walmart, Inc. The transaction is expected to close in the next few weeks and be accretive to earnings next year, reports Fashion United.
Established in 1998, Bare Necessities currently offers over 160 brands and 6,400 styles in intimates, women’s swimwear, shapewear, lingerie, sleepwear, and hosiery. The New York-based company was acquired by Walmart in 2018. Delta Galil has grown to be a globally recognized name, located in four continents, employing 23,000 associates, and working with over 50 industry-leading brands in the U.S., U.K. and Europe. The transaction reflects Delta Galil’s strategic growth objective to diversify its distribution channels and enhance its digital presence.
Total Retail's Take: As e-commerce booms, everyone is trying to grab a slice of the online sales pie. Delta Galil CEO Isaac Dabah said in a press release that the company's acquisition of Bare Necessities "reflects [its] strategic growth objective to diversify our distribution channels" and the online intimates brand "can significantly enhance Delta Galil’s presence in the digital world, as we continue to pursue growth online." With Bare Necessities' 160 brands and 6,400 styles, as well as its renowned expertise in fit and sizing options, Delta Galil is making a strong push into the online intimates market with the acquisition. Following the deal, the Bare Necessities site will offer Delta Galil’s own brands as well, furthering the online growth footprint for the manufacturer.
It's interesting to note that Walmart's sale of Bare Necessities gives a glimpse into the e-commerce portfolio changes happening at the retail giant. Walmart recently partnered with Shopify to expand its Marketplace to more small and midsize businesses, describing its Marketplace’s growth as a “strategic priority.” The retailer had acquired e-commerce brands such as Jet.com, ELOQUII, Bare Necessities, Bonobos, and ModCloth in recent years, but hasn't yet found success with some of the brands, selling ModCloth and cutting jobs at Bonobos in 2019, discontinuing its JetBlack service in February, and now selling Bare Necessities. Walmart has experienced tremendous growth in e-commerce sales during the COVID-19 pandemic, and seems to be now making strategic cuts to focus on its strongest online divisions.
Kristina Stidham is the digital content manager at Total Retail and sister brand Women in Retail Leadership Circle. She is passionate about digital media and handles social media, video, and podcast production for both brands, as well as contributing articles and attending events. Kristina holds a B.A. in Media Studies and Production from the Temple University Klein College of Media and Communication in Philadelphia.