Vintage-Inspired Apparel Retailer ModCloth to be Acquired by Wal-Mart
Changes are happening at ModCloth. Recode reported yesterday that Wal-Mart is acquiring the 15-year-old online retailer. The vintage-inspired clothing brand is being acquired on behalf of Jet.com, Wal-Mart's subsidiary that has been on an acquisition spree over the last 12 months. Over the last decade, ModCloth has gone through many changes. Within the last two years, under ex-Urban Outfitters’ exec Matt Kaness, ModCloth experimented with physical store locations, including a permanent spot in Austin, Texas.
Total Retail's Take: Jet.com has been on an acquisition spree since joining the Wal-Mart family last August. Since then, Jet.com has purchased ShoeBuy and, most recently, Moosejaw Mountaineering. The similarities between ModCloth and the other two recent acquisitions are that all of the companies are 15 years old or more, have had a hard time combining consistent growth during e-commerce boom, and all have a loyal, niche customer base. It will be interesting to see how a big-box retailer like Wal-Mart may have an effect on a very niche brand like ModCloth.